What are real-life examples of moral hazard in insurance?

Common examples include a driver being less cautious after getting car insurance, a homeowner neglecting property maintenance because they have coverage, or a policyholder filing exaggerated or fraudulent claims.

Does business interruption insurance cover cyberattacks?

Most policies exclude cyber-related losses, but specialized cyber insurance policies may offer business interruption coverage for system outages caused by cyber incidents.

What is the surrender value of a whole life insurance policy?

The surrender value is the amount the insurer pays if you cancel the policy before death. It consists of the cash value minus any surrender charges. While surrendering the policy provides immediate cash, it also means losing future coverage and benefits.

How do you add another insured to a policy?

You can add an insured by requesting an endorsement from your insurer. The company will assess the risk associated with the new insured and may adjust the premium accordingly. Some policies allow additions only at renewal, while others permit mid-term changes.

How does life insurance work?

Life insurance provides a financial payout to beneficiaries upon the policyholder’s death, ensuring their loved ones receive financial support, debt coverage, or estate planning benefits.

What is the tax treatment of accelerated death benefits?

Accelerated death benefits (paid to a terminally ill policyholder) are generally tax-free under federal law. However, if the benefits exceed the actual cost of the medical care, some states may impose taxes on the excess amount.

What happens if I don’t have employer liability insurance?

Without coverage, businesses may face significant financial losses from lawsuits, legal fees, and settlements. In some cases, non-compliance may result in fines or legal penalties.

What are the main types of private health insurance plans?

Common plans include HMOs, PPOs, EPOs, and indemnity plans, each differing in cost, coverage, and provider network flexibility.