How do I choose which insurance company to use?

July 7, 2024 No Comments

A: Picking an insurance company to use is not an easy task, nor is it an exciting one, but you will be glad you took the time to find the right one for you if you ever need to file a claim. When choosing your

Shipping Freight: CFR Versus CIF

July 7, 2024 No Comments

A: The difference between cost and freight (CFR) and cost, insurance and freight (CIF) is essentially the requirement under CIF shipping terms for the shipper to provide a minimum amount of marine insurance for goods shipped. The International Chamber of Commerce (ICC) established a system

How does a decline in housing prices affect the banking sector?

July 7, 2024 No Comments

A: When housing prices fall, consumers are more likely to default on their home loans, causing banks to lose money. Also, home equity dries up, meaning that consumers have fewer funds available for spending, saving, investing or paying down their debts. Sometimes, banks are even

Suppose my garage collapsed on my car. Are damages covered by my home insurance or auto insurance?

July 7, 2024 No Comments

A: Generally, damage to an automobile will be covered by comprehensive car insurance, which is in addition to collision coverage that applies to a car or truck while it is in use. In addition to accident insurance, comprehensive insurance will generally cover damage to an

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

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