How does long-term disability insurance work?

LTD insurance kicks in after a waiting period (elimination period), usually 90 to 180 days. If you're unable to work due to a covered disability, you file a claim. Once approved, you receive monthly benefits based on your policy’s coverage percentage, helping you cover living expenses and medical costs while unable to work.

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How does treaty reinsurance impact an insurer’s balance sheet?

Treaty reinsurance affects an insurer’s financial statements by reducing liabilities and enhancing capital efficiency. It allows insurers to maintain solvency ratios while ensuring they can underwrite additional business without taking on excessive risk.

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What are common workplace hazards that affect business insurance?

Slippery floors, exposed wiring, inadequate fire exits, and unsafe equipment increase workplace risks and can impact workers' compensation and liability insurance costs.

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How is Actual Cash Value calculated?

ACV is typically calculated by taking the replacement cost of an item and subtracting depreciation. Depreciation is determined by the item’s age, condition, and expected lifespan. Some insurers may also consider fair market value. The formula often used is: ACV = Replacement Cost – Depreciation.

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How do international insurance laws regulate health insurance across borders?

International health insurance laws require compliance with the health policies of the host country, ensuring that health insurance providers offer services that meet local regulations and international standards for expatriates and travelers.

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Does pet insurance cover alternative treatments for illnesses?

Some plans cover alternative treatments like acupuncture, hydrotherapy, or chiropractic care if prescribed by a veterinarian.

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How does a PPO plan work?

PPO plans contract with a network of doctors and hospitals to provide discounted rates. You can see any provider, but you'll pay less if you use in-network services. Out-of-network care is available but typically comes with higher out-of-pocket costs.

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How do economic conditions affect loss ratios?

Economic downturns can lead to higher claim filings (e.g., job loss increasing disability claims) or impact investment returns, forcing insurers to adjust pricing to maintain stable loss ratios.

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