No. All insurance policies have certain limits and exclusions that are reflected in the policy conditions. Calling an insurance policy “fully comprehensive” means that it covers a very wide range of risks, but it can never cover all possible situations.

The “small print” is popularly interpreted as:

• Adding a lot of detail to something that does not need it as a way of hiding important information.
• Using very complicated language, full of technical details, so that the reader does not understand it.
• Using a very small font size, which makes the text difficult or impossible to read.

In order to protect the insured party, the wording of contracts must be clear and precise. In fact, it is legally established that the limitations of the insurance must be highlighted in a special way.

Yes, insurance companies must select their risks according to objective technical criteria, to guarantee the service and benefits promised to all policyholders and, in short, to ensure their continuity as a company.

If an insurance company considers that insuring something poses a risk to its solvency and to the protection of its policyholders, it may refuse to insure it.

The insurer may refuse to insure a homeowners’ association in a very old building because of the intrinsic risk it represents or, for example, if it has an extensive history of water damage.

First of all, it is important to distinguish between insurance agents and brokers.

Insurance agents are professionals who work for one or more companies. Depending on who they work for they are:

• Captive insurance agents: these work with a single insurance company.
• Independent insurance agents: these work with several insurance companies.

Brokers are experts who offer professional and independent advice to people who wish to take out insurance policies, without maintaining ties to particular insurance companies.

Therefore, amounts paid to captive insurance agents is deemed to have been paid to the insurer, whereas the amounts the customer pays to an independent insurance agent are not deemed to have been paid to the insurer unless, in return, the independent insurance agent provides the policyholder with the premium receipt from the insurer.

A premium payment made to a broker is not deemed to have been made to the insurer unless, in return, the broker provides the policyholder with the premium receipt from the insurer.

The Amicable Accident Declaration (AAD) is a document whose main objective is to expedite the processing of material damages caused by the use of motor vehicles.

Filling out a AAD is very simple, just follow the recommendations below:

• Write clearly: fill in the information in capital letters and do not confuse the information for vehicle A (blue column) with that of vehicle B (yellow column).
• Fill in as much detail as possible.
• Use only one form for a collision between two vehicles.
• Look closely at the middle column, which determines the circumstances of the accident.
• If anybody witnessed the accident, take down their telephone number and address.
• If someone is injured or there are more vehicles involved, fill in the corresponding section.
• Draw a sketch of the accident scene.
• Sign the accident report, check that the other driver also signs it and keep a copy for yourself.

In order for car insurance to be valid abroad, the insured party must contact the insurance company and request a Green Card if they do not have one. The Green Card will contain a list of all the countries where the Civil Liability Insurance is in force.

Yes, some insurers provide cover for this.

This depends on whether the incident affects the building or the contents. If the damage is caused to the building, in other words, the structure of the property, the insurance company will indemnify the owner of the property. However, if the loss affects the contents, the insurer will recognize the owner of the insured property as the beneficiary (this could be the owner of the property or the tenant).

Whether you get new furniture or add new things, it is advisable to review the list of insured goods so that, if necessary, the policy can be extended or modified. Most home insurance policies allow you to readjust the sums insured and, therefore, modify the premium according to the new additions.

Spanish mortgage market regulations do not require you to take out any insurance when you get a mortgage. However, the bank may, in accordance with the principle of freedom of enterprise, make the granting of a loan subject to the fulfilment of certain requirements, including the taking out of a home insurance policy.

Normally, the banks offer more advantageous loan conditions if the insurance is arranged through the insurance company linked to the bank granting the loan. In these cases, and if the client so wishes, it is recommendable to negotiate with the bank about the possibility of taking out insurance with a different company that covers the same contingency.

In any case, the insurance policy must always be taken out with the client’s consent.

The policyholder may modify the beneficiaries as many times as they wish, normally by writing to the insurance company or in the will. In the first case, the new designation of beneficiaries must be made explicitly, identifying the policy to which the modification is being made.

Yes, you can have several life insurance policies at the same time.

At present, financial institutions usually require that this insurance is taken out at the same time as the mortgage is signed; however, it is not compulsory.

There is no maximum limit of Pension Plans per person. What the participant must bear in mind is that the sum of the contributions they make to the range of Pension Plans they own may not exceed the annual limit legally established according to their age.

Yes, you can stop making contributions to a pension plan at any time.The accumulated capital will continue to grow based on the revaluation of the fund it forms part of. Participants in this situation have opted out.

The participant cannot freely withdraw the amounts contributed by them or the pension plan promoter. They can only receive their rights in the event of any of the contingencies covered by the plan.

Generally speaking, the contingencies that entitle the participant to receive benefits are the following:

• Retirement
• Total and permanent incapacity to work in their habitual profession or absolute and permanent incapacity for all work, and severe disability.
• Death, in which case the beneficiaries designated by the participant will receive the benefit.
• The participant’s high to severe dependence.

This situation has two exceptions. Pension plan rights may be exercised, in whole or in part, in the event of serious illness or long-term unemployment, whenever this is provided for in the plan specifications and under the conditions and limitations established therein.