MANAGEMENT

Detailed explanation-1: -For example, if your general liability insurance limit is $1 million and you’re sued for $1.5 million, an excess liability policy would cover the $500, 000 that’s not covered by your underlying general liability insurance.

Detailed explanation-2: -Primary insurance kicks in first with its coverage even if there are other insurance policies. Excess insurance covers a claim after the primary insurance limit has been exhausted or used up. Reinsurance is a way of an insurer passing policies to another insurance company to reduce the risk of claims being paid out.

Detailed explanation-3: -The actual amount of claim is determined by the formula: Claim = Loss Suffered x Insured Value/Total Cost. The object of such an Average Clause is to limit the liability of the Insurance Company. Both the insurer and the insured then bear the loss in proportion to the covered and uncovered sum.

Detailed explanation-4: -Claims adjudication, sometimes known as medical billing advocacy, refers to a process where the insurance company reviews a claim it has received and either settles or denies it after due analysis and comparisons with the benefit and coverage requirements.