How does the 80% rule for home insurance work, and how do capital improvements affect it?

July 7, 2024 No Comments

A: The 80% rule refers to the fact that most insurance companies will not fully cover the cost of damage to a house due to the occurrence of an insured event (e.g. fire or flood) unless the homeowner has purchased insurance coverage equal to at least

What are catch-up contributions for Health Savings Accounts (HSAs)?

July 7, 2024 No Comments

A: The U.S. Internal Revenue Service (IRS) allows an eligible individual with a Health Savings Accounts (HSA) who turns 55 or older before his tax year-end to make a catch-up contribution of up to $1,000. Catch-up contributions increase the existing annual limits on HSA contributions.

How does the Affordable Care Act affect moral hazard in the health insurance industry?

July 7, 2024 No Comments

A: To see how the Patient Protection and Affordable Care Act, or “Obamacare,” affects moral hazard in the health insurance industry, it is first important to understand moral hazard and the nature of the health insurance market. The Act inflates existing moral hazard in the

How does the grace period work on my Flexible Spending Account (FSA)?

July 7, 2024 No Comments

A: Some employers offer the grace period option for their employee’s flexible spending account, or FSA. The grace period is applicable to a health FSA and a dependent care FSA. It begins the day following the end of the plan year and lasts for two and a

How does the insurance sector work?

July 7, 2024 No Comments

A: The insurance sector is composed of companies that offer risk management in the form of insurance contracts. One party, the insurer, guarantees payment for an uncertain future event. Another party, the insured or the policyholder, pays a smaller premium to the insurer in exchange

How is something “brought over the wall” in an investment bank?

July 7, 2024 No Comments

A: An analyst who lends his or her expertise to an underwriting department is said to have been “brought over the wall”. In financial firms, the separation between the investment analyst and the underwriting departments is described as the “wall”, as in the Great Wall

How much do changes in interest rates affect the profitability of the insurance sector?

July 7, 2024 No Comments

A: Interest rate risk for insurance companies is a significant factor in determining profitability. Although rate changes in either direction may affect insurance company operations, insurance company profitability typically rises and falls in concert with interest rate increases or decreases. Changes in interest rates can

How much money can Uber drivers make?

July 7, 2024 No Comments

A: According to the company’s own data released in May 2014, more than half of the Uber drivers operating in New York City earn $90,000 a year; in San Francisco, drivers can earn up to $70,000. However, these figures have been subject to skepticism. In

How much renters insurance do you need?

July 7, 2024 No Comments

A: You should have enough renters insurance coverage to replace lost or damaged items with new ones. On average, renters have approximately $20,000 worth of belongings, but it is important to take inventory of everything you own to calculate exactly how much coverage you need.

Is dental insurance tax deductible?

July 7, 2024 No Comments

A: Dental insurance premiums may be tax deductible. To be deductible as a qualifying medical expense, the dental insurance must be for procedures to prevent or alleviate dental disease, including dental hygiene and preventive exams and treatments. Dental insurance that is for purely cosmetic purposes,

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