How does the deductible affect collision insurance claims?

The deductible is the amount you must pay out of pocket before your insurance covers the rest. Choosing a higher deductible typically lowers your premium but increases your cost if you file a claim.

What is the difference between an open-perils and named-perils policy?

A named-perils policy covers only the perils listed in the contract, while an open-perils policy covers all perils except those explicitly excluded by the insurer.

Where are captive insurance companies commonly domiciled?

Popular domiciles include Bermuda, Cayman Islands, Vermont, Delaware, and Guernsey due to favorable regulations and tax incentives.

What role did the development of health insurance play in the evolution of life insurance?

The development of health insurance in the early 20th century complemented the evolution of life insurance by addressing healthcare costs. As medical care improved, life insurers began offering policies that integrated health benefits, helping policyholders manage the costs associated with illness and injury alongside death benefits.

Can livestock insurance cover loss of income due to livestock deaths?

Business interruption coverage can be added to some policies, compensating farmers for lost income resulting from significant livestock losses affecting farm productivity.

What happens if a business relocates after a covered event?

If a business relocates due to a covered loss, business interruption insurance can cover moving expenses, rent differences, and lost income during the transition. However, coverage depends on the specific policy terms and whether relocation is temporary or permanent.

How long does the subrogation process take?

The subrogation process can take weeks to several months, depending on the complexity of the case, cooperation from the at-fault party, and legal proceedings. Simple cases settle quickly, but disputed claims may take longer.

Are endorsements the same as riders?

Yes, endorsements and riders are terms often used interchangeably, both referring to policy amendments that change or add specific terms to an insurance policy.