What is Insurance law? Simply put, it is the practice of the law pertaining to insurance. This includes insurance policies and claims. It also involves the law governing the sale of insurance products. This practice is extremely important in a variety of situations, from personal injury to large corporate transactions. The article below provides a basic understanding of the practice of insurance law. After reading this article, you should be able to find a good attorney to help you navigate this complex area of law.
Common-law principles
Most legal systems apply common-law principles in the adjudication of commercial insurance disputes. This means that insurers and insureds share the economic burden of risk. Whether these principles are followed is a matter of interpretation. This article will explore the differences between common law and civil law principles. In the end, this will make the differences less important. In addition, this article will demonstrate the usefulness of common-law principles in the area of insurance law.
First, insurers owe a duty of good faith to their insureds. This duty requires them to disclose material facts about a risk and the coverage provided under their policy. Moreover, English law imposes a similar duty on insurers. They must disclose all relevant facts and circumstances about a risk or covered policy. This duty of disclosure will be explained and tested. Consequently, it is an essential tool in any insurance law textbook.
Another principle is the law of agency. This principle applies to a wide variety of situations, including everyday life and the business world. It is based on the principle that a legal entity can only act through a human intermediary. In insurance, for example, companies rely on outside sales forces to promote their products. Whether or not these salespeople are agents of the insurance company is determined by the law of agency.
Under common-law principles, the parties to a contract should specify who bears the “risk of loss” in the event of a claim. If the insurance contract does not contain such a provision, the insured may not be able to collect the premiums, which the insurer should compensate. Nevertheless, these principles are generally deemed to be valid in any jurisdiction. It is important to note that common-law tort principles can have unexpected consequences for parties to an insurance contract.
Scope of practice
Health care professionals are increasingly defining their scope of practice by state legislatures and licensing bodies. These laws differ widely from state to state, but they generally limit the activities that each licensed professional can do. In high-risk fields like medicine, physicians are often the sole provider of health care. Physician-led health care teams include physicians, nurses, and other health professionals with advanced education and training. The scope of practice of each of these professionals varies according to their education, training, and experience.
Professional regulation of insurance companies goes beyond capital adequacy and prudential oversight. The goal of regulation is to protect policy holders against fraudulent and deceptive actions, ensure that premiums are reasonable, and that contracts meet minimum standards. Bad faith actions, which can include the denial of a valid claim or delaying payment of an insurance claim for a long period of time, often place the burden of proof on the insured.
Issues
Often overlooked by attorneys, issues in insurance law can create conundrums in first-party insurance relationships. This article discusses recurring issues in attorney liability and ethical behavior in the insurance practice area. Listed below are three common issues and their respective resolutions. Read on to learn more. Let’s face it: attorneys are hired for many reasons, and many of these decisions have implications for the insurance industry as a whole.
The New Appleman on Insurance, a quarterly publication, analyzes and discusses emerging and important issues in insurance law. It contains articles by leading practitioners, analyzing recurring and new issues. Several articles also feature multijurisdictional surveys of state high courts. In addition, Appleman’s articles are updated to reflect the latest cases and developments in the field. Listed below are just a few of the many articles in the Journal that you can benefit from.
Coverage issues arise when an insured party and insurer disagree about the meaning of the policy. These issues center on contract interpretation and fact gathering. They often arise in complicated fact patterns in the engineering, technology, and medical fields, and environmental clean-ups. Whether these cases are resolved favorably or against the insured depends on how well the insurance industry can be protected. However, the common law jurisdictions are more likely to favor insurers, which is often the case in cases involving liability insurance.
Regulating the insurance industry in the United States began in the 1940s, and a number of major issues emerged from this period. One of the most notable of these issues was the McCarran Fergusson Act, which established states’ primary regulatory jurisdiction over the insurance industry. The Act also established various risk-shifting mechanisms directly applicable to insurance carriers. Lastly, the Act also mandated that insurers spend 80-85% of their premiums on medical care.
A study aid on insurance law provides basic information about the topic. It explains important terms and concepts and covers the various aspects of insurance law. It covers topics such as insurable interests, bad faith, insurance policy interpretation, and duty to defend and settle. It also discusses special issues arising out of automobile and group insurance, and the liability system. The guide also explains issues regarding reinsurance and surplus line insurers. You’ll never be left wanting in insurance law!
Sources
There are many secondary sources of insurance law, including digests and treatises. LibGuide’s insurance resources list includes legal periodicals, bad faith, and topical insurance treatises. When researching insurance law, determine what type of law you’re interested in, and look for policy forms, digests, or annotated policies. Also, consider NAIC model laws, legislative history, and statutory surveys, if you’re researching an issue related to uninsured motorist benefits.
Another source of insurance law is the Compendium of Insurance Law, a comprehensive overview of the relevant statutes and codes. It features detailed annotations describing the operation of each source, including how it relates to other sources of insurance law. Whether you’re looking for general information on insurance regulations or specific detail on how to understand a particular policy contract, this comprehensive book will provide the foundation you need to succeed. Once you have a working knowledge of insurance law, you’ll be able to start practicing insurance law.
Insurance law is divided into two main categories: those that govern the insurance industry, and those that regulate the relationship between the insurer and the policyholder. State insurance law relates to regulating entities and policies, and administrative regulations issued by state insurance departments. Despite the differences in these two types of insurance law, many of them overlap. The purpose of these sources is to give consumers a better understanding of the laws that govern the insurance industry.
