FAQ's
Auto FAQ's
| Q: | Can I legally drive without Auto Insurance |
| A: | No. Almost all States requires you to have Auto Liability Insurance. |
| Q: | Does my insurance policy cover if I lease a car? |
| A: | If you lease a car, you still need to buy your own auto insurance policy. |
| Q: | What is collision physical damage coverage? |
| A: | Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole. |
| Q: | What is comprehensive physical damage coverage? |
| A: | Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm. |
| Q: | Do I need seperate Car Rental Insurance when I rent a Car? |
| A: | Before renting a car, please make two phone calls—one to your insurance agent or company representative and another to the credit card company you will be using to pay for the rental car. Depending on the types of Insurance you have, whatever coverages and deductibles you have on your own car would apply when you rent a car. Credit cards usually cover only damage to or loss of the rented vehicle, not for other cars, personal belongings or the property of others. The types of coverage differ by both company and the bank that issued the card. |
| Q: | How could I save money on car Insurance? |
| A: | The price on car insurance depends on various factors such as: Insurance Provider Amount of Coverage and types of coverage to be included. Other Factors such as Buying price of car, etc. |
| Q: | What are steps to file a Claim? |
| A: | 1. Call your insurance agent as soon as possible, regardless of who is at fault. Find out whether you're covered for this loss. Even if the accident appears minor, it is important that you let your insurance company know about the incident. 2. Ask your agent or company representative how to proceed and what forms or documents are needed to support your claim. Your insurance company will require a “proof of claim” form and, if there is one, a copy of the police report. Increasingly, companies allow you to monitor the progress of your claim on their web site. 3. Supply the information your insurer requests. Get the names and phone numbers of everyone you speak with and copies of any bills related to the accident. 4. Ask your insurance agent / company representative following Q's: * Is there a time limit for filing claims, submitting bills and resolving claims disputes? * When can I expect the insurance company to contact me? * Do I need to get repair estimates for the damage to my car? * Will my policy pay for a rental car while my car is being repaired? If so, how much? 5. Each state has its own laws governing the claims process for any further questions, call your agent, company representative or your state insurance department. |
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Home FAQ's
| Q: | What is home insurance? |
| A: | Home insurance is a form of personal lines insurance. The typical homeowners policy has two main sections: 1) covers the property of the insured and 2) provides personal liability coverage to the insured. |
| Q: | What do I need to know when purchasing home insurance? |
| A: |
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| Q: | Can I get insurance if I rent my home? |
| A: | Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive. |
| Q: | What is "replacement cost"? |
| A: | When "replacement cost" coverage is used in a policy, a policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices. |
| Q: | Where and when is my personal property covered? |
| A: | Coverage C of a home policy provides named perils coverage. This applies to all your personal property except for property that is specifically excluded in the insurance. |
| Q: | Should I purchase earthquake, flood or maintainence coverage? |
| A: | Direct damages due to earthquakes, flood or maintainence are not covered under the standard homeowners insurance policy. If you live in an area that is prone to these damages, you may want to consider adding an endorsement to your homeowners insurance policy. EarthQuake endorsement will cover damages due to earthquakes, landslides, volcanic eruptions, and other earth movements. |
| Q: | Should I purchase flood coverage? |
| A: | If your property lies in a flood plain as determined by US Government Flood Maps. Ask your independent agent about a flood quote. |
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Business FAQ's
| Q: | What is fire legal coverage? |
| A: | Fire legal coverage provides coverage to for you if you rent a business space and are held responsible for fire damages to that rented space. It does not apply to all business risks. |
| Q: | What is the difference between Replacement Cost (RC) and Actual Cash Value (ACV)? |
| A: | Replacement Cost is the current cost to replace property. Actual Cash Value is the replacement cost less depreciation. |
| Q: | What does 80% co-insurance mean? |
| A: | Insurance carriers require that an insured party insure at least 80% of the property's value in order to collect a partial loss in full. This is the way the insurance company encourages all insureds to adequately insure their property in relation to other insureds. |
| Q: | Will my policy cover physical damage to a rented vehicle? |
| A: | This damage will be covered only if that type of coverage is purchased. |
| Q: | Can other people drive my business vehicle? |
| A: | Other people may drive your vehicle with your permission. It is important that they be listed on your policy if they are regular drivers of the vehicle. |
| Q: | How does an audit work? |
| A: | At the end of the policy term, the insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. Examples of estimated auditable items include sales and payroll. Audits can be performed onsite by an auditor or via mail or telephone. A premium is charged for audit estimations. |
| Q: | Why do I need certificates of insurance from sub-contractors? |
| A: | An audit may require you to show proof that sub-contractors had their own insurance coverage. The sub-contractors' certificates of insurance will prevent you from being charged for their exposure. |
| Q: | What is General Liability? |
| A: | General Liability provides coverage if you are liable for damages to other individuals arising from your premises, general operations (ongoing and after completion) and products manufactured or sold. |
| Q: | What does Products/Completed Operations mean? |
| A: | Products/Completed Operations refers to the liability coverage for damages caused by your operation or products after the point at which you no longer have control of them. |
| Q: | What is Business Interruption/Extra Expense coverage? |
| A: | Business Interruption/Extra Expense coverage provides coverage for income loss and the expense of establishing a temporary site during repairs due to damages related to a fire or compensable loss. |
| Q: | What is the difference between "Named Insured", "First Named Insured" and "Additional Insured?" |
| A: | Named Insureds are those listed by name in the relevant block of the policy's declaration page. Although the named insured is commonly one person, partnership, corporation or other entity with insurable interests, multiple named insureds may be included. First Named Insured is the first "named insured" listed on the policy declarations (front page of the policy). This insured acts as the legal agent for all named insureds in initiating cancellation, requesting policy changes or accepting any return premiums. The first named insured may also be responsible for payment of the premiums. Additional Insured is an entity to which a policy's coverage is extended. An additional insured must be added to the policy prior to a claim being paid. There must be a tied to relationship between the additional insured and named insured. Being an additional insured on another's policy does not eliminate the need for someone to have his/her own Commercial General Liability policy. |
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Life FAQ's
| Q: | How much life insurance should an individual own? |
| A: | In most cases, if you have no dependents and have enough money to pay your final expenses, you don’t need any life insurance. "Rule of thumb" suggest an amount of life insurance equal to 6 to 8 times annual earnings. Important factors to be taken into consideration include:
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| Q: | What about purchasing life insurance on a spouse and on children? |
| A: | In certain circumstances, it may be advisable to purchase life insurance on children; generally, however, such purchases should not be made in lieu of purchasing appropriate amounts of life insurance on the family breadwinner(s). It is of utmost importance that the income earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance before contemplating the purchase of life insurance on children or on a non-wage earning spouse. In a dual-earning household, it is important to protect the income earning capacity of both spouses. Life insurance on a non-wage earning spouse is often recommended for the purpose of paying for household services lost at this individual's death. |
| Q: | What if I cant pay my Premium? |
| A: | In case, you have Term insurance, your coverage lapses. For Permanent insurance you may have the option to cash-out the policy or non-forfeiture options such as reduced paid-up option, you may also be able to reinstate your policy after the policy has been lapsed, depending on the terms and conditions of the policy |
| Q: | What are different types of Permanent Policies? |
| A: | Whole or ordinary type: It offers a death benefit along with a savings account. Universal or adjustable life: You may be able to increase the death benefit, if you pass a medical examination. The savings vehicle (called a cash value account) generally earns a money market rate of interest. You may also be able to alter premium costs providing there is enough money in your account to cover the costs. Variable Life:This policy combines death protection with a savings account that you can invest in stocks, bonds and money market mutual funds. Variable Universal Life:If you purchase this type of policy, you get the features of variable and universal life policies. You have the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust your premiums and death benefit that is characteristic of universal life insurance. |
| Q: | Can an existing life insurance policy be used to provide for the repayment of an outstanding mortgage loan? |
| A: | Yes; the purchase of a new mortgage protection term insurance policy is usually not required by the lender. An existing policy, either term or cash-value life insurance, can be used for many purposes, including paying off an outstanding mortgage loan balance in the event of the insured's death. |
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Health FAQ's
| Q: | Are there any other sources for covering medical expenses? |
| A: | Yes, Here are few:
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| Q: | If my employer does not offer health insurance, can I buy an individual policy? |
| A: | Yes, If you are unemployed, self-employed, or decide to return to school you may want to buy an individual health insurance policy. |
| Q: | If I change jobs or become unemployed, can I take my health insurance coverage with me? |
| A: | If you switch employers, you have the right to carry your group health insurance coverage with you to a new job for up to 18 months under the Consolidated Omnibus Budget Reconciliation Act (COBRA). |
| Q: | Can I deduct my health insurance premiums on my income tax return? |
| A: | Yes, you can deduct the premiums which you contribute. |
| Q: | Do I need to alert my insurance company if I am expecting a baby? |
| A: | Yes. |
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