How do stress tests help assess insurance solvency?

Stress tests evaluate an insurer’s ability to withstand extreme financial scenarios, such as economic recessions, market crashes, or catastrophic claims events. Regulators use stress tests to identify vulnerabilities and ensure that insurers have adequate capital reserves to manage severe financial shocks.

How much does cyber insurance cost?

Cyber insurance premiums vary based on business size, industry, security measures, past cyber incidents, and coverage limits. Small businesses may pay a few hundred dollars annually, while larger firms may pay thousands.

What is an HMO health insurance plan?

A Health Maintenance Organization (HMO) plan requires members to use a network of doctors and obtain referrals for specialist care.

Why do premiums vary between different insurance companies?

Premiums vary due to differences in coverage options, customer service, risk assessments, and the company's cost structure and underwriting process.

How can I ensure a smooth claims process?

Promptly report the claim, provide accurate information, submit complete documentation, follow up regularly, and cooperate with the insurer’s investigation to avoid unnecessary delays.

What is the difference between an insurance agent and an insurance broker?

An insurance agent represents one or more insurance companies, while a broker works independently to find the best policy for clients.

Can facultative reinsurance be used for life and health insurance?

Yes, facultative reinsurance is used in life and health insurance to cover high-value policies, impaired-risk individuals, or unique cases where standard treaty agreements may not provide adequate coverage.

Can homeowners insurance liability cover legal defense costs?

Yes, homeowners liability insurance can help pay for legal defense costs if you are sued for an injury or property damage that occurred on your property. This is usually part of your liability coverage.