Insurance Law

Introduction to Insurance law

n order to understand insurance law, it is useful to understand insurance first. Insurance is a contract in which one party (the “insured”) pays money (called a premium) and the other party promises to reimburse the first for certain types of losses (illness, property damage, or death) if they occur.

Insurance law falls into three major categories. First, the insurance company will hire lawyers to represent the insured in case she is sued for something related to her insurance contract. These are known as “insurance defense attorneys.” For example, an automobile insurance company will hire an attorney to represent an insured driver when she gets sued for causing another driver’s injuries. The second category of insurance law helps insured people determine when an insurance company must pay a claim. Third, insurance companies typically hire attorneys to make sure the company complies with all applicable laws and regulations, which can vary by state.

We Cover

Insurance Policy

The contract which outlines what the insurance company will pay in case of loss.

Benefit

The money or services an insurance company provides in case of loss

Insured

The person who receives the insurance benefit. However, in the case of life insurance, the "insured" is the person whose life is insured, and the person who receives the benefit is called the "beneficiary."