What is the role of an insurance ombudsman in consumer protection?

The insurance ombudsman is an independent body that resolves disputes between policyholders and insurers. It provides a free, impartial service for consumers seeking redress for unfair claim denials, policy misrepresentation, or poor customer service, often preventing the need for legal action.

What are the main actuarial practice areas covered by the SOA?

The SOA focuses on several actuarial practice areas, including life insurance, health insurance, retirement benefits, enterprise risk management, predictive analytics, and finance.

How does weather-related agricultural insurance help farmers financially?

It helps by compensating for lost income, covering the cost of replanting crops, or providing funds to repair damaged infrastructure, reducing the financial burden of weather-related losses.

Can business liability insurance cover legal defense costs?

Yes, business liability insurance generally covers legal defense costs, including attorney fees, court expenses, and settlement costs, even if the claims are found to be false. This coverage can help businesses avoid financial strain during litigation.

How often are solvency ratios reviewed by regulators?

Regulators review solvency ratios annually or more frequently during financial audits, stress tests, or in response to economic downturns that may impact an insurer’s stability.

What is directors and officers (D&O) liability insurance?

D&O insurance protects company executives from lawsuits related to mismanagement, negligence, or regulatory violations while performing corporate duties.

Can I get insurance with low premiums and high coverage?

It’s possible to get insurance with lower premiums and higher coverage, but it often involves trade-offs. For instance, you might need to increase your deductible, limit certain types of coverage, or opt for a policy with exclusions that reduce your overall risk. It’s important to balance affordability with adequate coverage for your needs.

What is a return of premium rider?

A return of premium rider refunds all or part of the premiums paid if the policyholder survives the policy term, making it a beneficial but expensive add-on.