A 'Claim Limit' refers to the maximum amount an insurer is obligated to pay for a single claim under an insurance policy. It provides protection to insurers against large losses while setting clear expectations for the policyholder.
The Premium Reserve is a crucial financial measure in insurance, allocated to cover potential future claims from existing policies, ensuring fiscal responsibility and customer protection.
The Prudential Regulation Authority (PRA) is an agency under the Bank of England responsible for the prudential supervision and regulation of the UK financial system, promoting safety, soundness, and policyholder protection.
Underinsurance refers to inadequate insurance coverage, which can cause financial hardship for a policyholder. Learn about its types, causes, consequences, and find answers to frequently asked questions.
