What are common examples of adverse selection?

Examples include unhealthy individuals buying more health insurance, high-risk drivers seeking auto coverage, or people in flood-prone areas purchasing property insurance while lower-risk individuals opt out due to high premiums.

How much does business interruption insurance cost?

Costs vary based on industry, location, revenue, risk factors, and policy limits, with higher-risk businesses generally paying higher premiums for coverage.

Can I convert my whole life insurance policy into an annuity?

Yes, some insurers allow policyholders to convert their whole life policy into an annuity, providing regular income payments. This option is useful for retirement planning, as it ensures a steady income stream while forfeiting the death benefit.

What is a named insured?

A named insured is the person or entity explicitly listed in the policy as the primary coverage recipient. They have rights under the policy, such as making claims, renewing coverage, and requesting endorsements. Named insureds are legally recognized by the insurer.

What does auto insurance typically cover?

Auto insurance covers vehicle damage, medical expenses, liability for injuries or property damage, and uninsured motorist protection, depending on the policy type and coverage limits.

Are health insurance premiums tax-deductible?

For self-employed individuals, health insurance premiums are generally deductible as an above-the-line expense. For others, premiums may be deducted as a medical expense on Schedule A, subject to the same AGI percentage limitations as other medical expenses.

Can independent contractors file claims under employer liability insurance?

Generally, independent contractors are not covered. However, if they are misclassified and legally deemed employees, they may be able to file claims against the employer.

How do private health insurance premiums work?

Premiums are monthly payments made to maintain coverage, with costs varying based on age, plan type, location, and medical history.