INSURANCE

The coverage area of an insurance policy defines the specific risks or hazards that are insured against. It varies depending on the type of insurance policy, but typically includes the following: General Liability: Auto Liability: Homeowner’s/Renter’s Insurance: Health Insurance: Other Insurance Policies: Specific Policy Provisions: Within each coverage area, policy provisions outline the specific risks […]

Concurrent insurance is a type of insurance coverage that applies when two or more policies cover the same loss or damage. In this situation, the policies are said to be concurrent, meaning that they provide coverage simultaneously for the same claim. How Concurrent Insurance Works: Examples of Concurrent Insurance: Key Considerations: Benefits of Concurrent Insurance: […]

Self-insure means to bear the risk of loss or damage oneself, rather than transferring that risk to an insurance company. It’s a term that is often used in formal language, particularly in situations involving potential financial liability. Here are some examples: Here are some potential drawbacks of self-insurance: Here are some potential advantages of self-insurance: […]

The Deposit Insurance and Credit Guarantee Corporation (DICGC) is a state-owned corporation in India that insures deposits in banks and credit cooperatives. It is a key component of the Indian banking system, ensuring stability and confidence in the banking system. Deposit Insurance:– Deposits up to INR 5 lakh are insured by the DICGC.- In the […]

A subaccount charge is a fee charged for a service or product provided to a subaccount within a particular account. Examples of subaccount charges: Reasons for subaccount charges: Examples of subaccount charge scenarios: Note: Subaccount charges are typically in addition to any charges associated with the main account. They are not deducted from the main […]

The combined ratio of two or more ratios is the ratio of the combined or total number of units to the combined or total number of units in the given ratios. Formula for Combined Ratio: Combined Ratio = a/b = (a1/b1) + (a2/b2) + … where: Steps to Find Combined Ratio: Example: Find the combined […]

Excess judgment loss refers to a cognitive bias where people tend to overestimate the accuracy of their own judgments and underestimate the accuracy of others’. This bias can lead to errors in decision-making and judgment, as people may be unwilling to admit their own mistakes or consider alternative perspectives. Causes: Examples: Consequences: Mitigating Excess Judgment […]

Target risk is the desired level of risk associated with an investment or portfolio. It is typically expressed in terms of the potential return and volatility of an investment. Factors Affecting Target Risk: Setting Target Risk: Example: An investor with a high risk tolerance and a long time horizon might have a target risk of […]

Definition: Insurance is a type of financial protection that provides coverage against potential losses or damages. It involves a mutual agreement between the insured and the insurer, where the insurer promises to compensate the insured for specified damages or losses in exchange for a premium payment. Key Concepts: Types of Insurance: Benefits of Insurance: Conclusion: […]

Definition: An impaired insurer is an insurance company that is unable to meet its financial obligations in full or is at high risk of becoming insolvent. An insurer may be impaired due to a variety of factors, including: Financial difficulties: Low reserves, inadequate capital, or declining profitability Market conditions: Changes in interest rates, property values, […]