Home Insurance
What is the difference between an "all-risk" and a "named-peril" policy in homeowner's insurance?
An "all-risk" policy covers all perils unless specifically excluded, while a "named-peril" policy only covers perils listed in the policy.
What is "usage-based insurance," and how does it affect auto insurance premiums?
Usage-based insurance uses telematics to track driving behavior, potentially resulting in lower premiums for safer drivers.
What are some lesser-known types of liability risks that umbrella insurance can cover?
Umbrella insurance can cover risks such as libel, slander, defamation, and false arrest.
What are some common tactics used by insurance adjusters to investigate and validate claims?
Adjusters may review medical records, interview witnesses, conduct surveillance, and assess damage to determine the validity of a claim.
Which insurance company famously insured the Titanic, and what was the outcome of the claim?
Lloyd's of London insured the Titanic, and the claim was paid out in full.
In home insurance, what is the "80% rule," and how does it impact coverage?
The "80% rule" requires homeowners to insure their property for at least 80% of its replacement cost to receive full coverage benefits in the event of a claim.
Describe the differences between "stacked" and "unstacked" uninsured motorist coverage
Stacked coverage combines the limits of multiple vehicles on a policy, while unstacked coverage applies the limit of a single vehicle.
How does excess liability coverage differ from umbrella insurance, and when might each be appropriate?
Excess liability coverage provides additional coverage above the limits of an underlying policy, while umbrella insurance offers broader coverage for various liability risks.
Explain the concept of "bad faith" insurance claims and how they are litigated.
Bad faith claims arise when an insurer unreasonably denies or delays payment of a valid claim, leading to potential lawsuits and damages beyond the policy limits.
Why work with an Insurance Broker?
By having access to multiple carriers, a broker has the ability to shop the market and help their client make a more informed decision.
Explain the concept of "replacement cost" versus "actual cash value" in home insurance claims.
"Replacement cost" refers to the amount needed to replace damaged property with new items of similar kind and quality, while "actual cash value" takes depreciation into account.
How does the insurance industry use telematics to assess risk in auto insurance?
Telematics devices collect data on driving habits such as speed, mileage, and braking patterns to assess risk and determine premiums.
What role does underwriting play in determining eligibility for umbrella insurance?
Underwriting assesses an individual's risk profile to determine eligibility and set premiums for umbrella insurance.
What strategies can policyholders use to appeal a denied insurance claim successfully?
Policyholders can appeal by providing additional evidence, seeking legal assistance, or filing complaints with regulatory agencies.
What is the significance of Lloyd's Coffee House in the history of insurance?
Lloyd's Coffee House in London is where marine insurance began, with sailors, merchants, and shipowners gathering to discuss and arrange insurance for their voyages.
What are some common exclusions found in homeowner's insurance policies?
Common exclusions include flood damage, earthquakes, war, and intentional acts of the insured.
What factors influence the calculation of a vehicle's diminished value in an auto insurance claim?
Factors include the vehicle's pre-accident condition, mileage, age, and the extent of damage sustained.
Describe the process of "stacking" umbrella policies for increased coverage limits.
Stacking involves purchasing multiple umbrella policies from different insurers to increase coverage limits beyond what a single policy provides.
What is subrogation?
: In first-party claims, the insurer may pursue subrogation against a third party responsible for the loss to recover damages from the responsible party.
Which country is credited with introducing the first modern system of government-sponsored insurance?
Germany is credited with introducing the first modern system of government-sponsored insurance with the implementation of workers' compensation in the late 19th century.
How does the location of a home impact its insurance premiums, and what factors are considered?
Location affects premiums due to factors like crime rates, proximity to fire departments, and susceptibility to natural disasters such as hurricanes or wildfires.
Explain the concept of "no-fault" auto insurance and its implications for policyholders.
No-fault insurance allows policyholders to recover damages from their own insurance company regardless of who is at fault in an accident, which can streamline the claims process but may limit the ability to sue for damages.
How do changes in an individual's lifestyle or assets affect their need for umbrella insurance?
Changes such as acquiring additional assets or engaging in higher-risk activities may increase the need for umbrella insurance to protect against potential liability claims.
Describe the role of a public adjuster in the insurance claims process and when they might be beneficial.
A 3rd party "vendor" that works with the claimant and the carrier to settle a claim. Often takes a % of the claim payout.
Public adjusters advocate for policyholders in the claims process, negotiating with insurers to maximize claim settlements, particularly in complex or disputed claims.
What unique insurance policies have been sold for unusual risks or events throughout history?
Policies have been sold for alien abduction, Loch Ness Monster sightings, and celebrity body parts, among other unusual risks.