What is the role of a third-party beneficiary in an insurance contract?

A third-party beneficiary is someone who, while not a party to the insurance contract, stands to benefit from it. In many insurance policies, such as life insurance, the beneficiary is a third party who receives the payout upon the insured's death. These individuals are granted rights under the contract, such as the ability to claim benefits, even though they did not directly participate in creating the insurance agreement. They are an important aspect of many personal insurance policies.

Can a business be held liable for products it did not manufacture?

Yes, retailers, wholesalers, and distributors can be held liable if they sell defective products, even if they did not manufacture them. Product liability insurance helps cover such claims.

Can I change my investment options in a variable life policy?

Yes, policyholders can reallocate funds among available investment options, adjusting risk exposure based on financial goals and market conditions.

How can policyholders ensure they have adequate peril coverage?

Policyholders should review their insurance policies, understand covered and excluded perils, and assess their risk exposure. Purchasing endorsements, riders, or separate policies for high-risk perils, such as floods or earthquakes, can help ensure comprehensive protection. Regularly updating coverage based on property value and location changes is also recommended.

What are the tax advantages of captive insurance?

Captive insurance companies may offer tax advantages, such as deducting premiums paid to the captive, deferring tax on underwriting profits, and potentially using the captive’s assets for tax planning purposes.

What is the role of AI in financial services?

AI helps in fraud detection, automated trading, risk assessment, customer service chatbots, and personalized banking recommendations.

How can agricultural insurance contribute to food security?

By protecting farmers against weather-related losses, agricultural insurance ensures stable food production, encourages investment in agriculture, and reduces the risk of food shortages caused by climate-related disasters.

Does uninsured motorist coverage cover hit-and-run accidents?

Yes, in many states, uninsured motorist coverage applies to hit-and-run accidents where the responsible driver is unknown or fails to stop at the scene.