1) Continuity of Business:
Through the payment of regular premiums, insurance encourages people to make systematic savings. Regular premium payments develop a habit of saving among citizens. As a result of the small savings of millions of insured people, a huge amount of savings is generated at the national level.
People and their property are protected economically by insurance. The property may be damaged or lost due to events such as fire, flood, lightning, earthquake, theft, or breakdown in machinery. Insurers provide financial protection against losses caused by specific risks to property. The property is not protected from any risk by insurance nor is it able to avoid any risk.
Losses cannot also be reduced by it. Such financial losses are only indemnified by it. The occurrence of fire cannot be prevented by a fire insurance policy. As a result, it compensates property owners for fire-related losses.
Answer: D) If the employer pays for the disability insurance
A) Hull insurance limits coverage to the breakdown of a ship’s machinery and equipment.
B) Cargo insurance protects the shipowner for the loss of the earnings if a ship is lost of damaged and goods are not delivered.
C) Freight insurance covers the owner of cargo if the cargo is damaged or destroyed.
D) Protection and indemnity insurance provides liability insurance to the ship owner for bodily injury and property damage to third parties.
The state’s Department of Insurance has granted a license to an admitted or standard insurance company, allowing it to write specific types of insurance. A variety of illegal and unethical practices, including fraud, are prohibited by rate and form regulations, financial examinations, and strict regulation of these companies. A state guaranty fund is in place to cover losses incurred by insurance carriers that become insolvent or unable to pay policyholder losses.
The National Association of Insurance Commissioners (NAIC) requires admitted insurance companies to comply with state insurance regulations. A company may be forced to make claims payments by the state if they fail to do so. However, non-admitted insurance carriers lack such back-up protection mechanisms. If a customer purchases coverage from an admitted carrier, certain fees and taxes aren’t charged. In addition, if policies are handled incorrectly, admitted insurance policyholders have the right to appeal to their state insurance department.
Looking for the answer to the question below related to Umbrella Insurance? All of the following are true of an Umbrella Liability Policy, except: Options: A) After underlying coverage is exhausted, coverage is excess B) Property in the care and custody of the insured is covered C) Specific minimum limits for underlying coverage are … Read more
Looking for the answer to the question below related to Umbrella Insurance? The insured has a $1,000,000 personal umbrella policy with a $5,000 retention limit. For a $7,000 liability loss not covered under the insured’s personal auto policy, but covered under the Umbrella policy, the insurance company would pay: Options: a) $3,000 b) $1,000 … Read more
Looking for the answer to the question below related to Umbrella Insurance? What costs are paid under an umbrella policy? Options: a) only the required underlying limits and the defense costs b) the limit and any defense costs minus any applicable self-insured retention (deductible) c) the limit minus any self-insured retention d) the limit … Read more