Insurance

Insurance is when one party indemnifies another from a predefined risk in exchange for a premium. There are numerous kinds of insurance available to an individual, the most common of which are health insurance, car insurance and property insurance. Businesses also avail of insurance to protect their businesses from future risks. The kinds of insurance available to businesses include general liability insurance, property insurance, worker's compensation, directors and officers insurance, and life insurance.

Insurance terms vary according to the type of insurance provided, the risk insured, and the insurance provider. The general term, however, is that regardless of whether the predefined risk occurs or not, insurance premium will not be returned. Insurance companies play a great role in maintaining economic ability. It is in this regard that the government and courts established laws to regulate such commerce.

Insurance law covers three main issues: insurance policies, insurance claims and rates, and insurance business. Insurance law is a rather young set of rules and regulations. It was not until 1944 when the U.S. Supreme Court held in a case that insurance is a "commerce" and, thus, is subject to Congress' constitutionally-mandated authority of regulating interstate commerce. As a result of the 1944 ruling, the McCarran-Ferguson Act, which provides that state laws control the insurance business, was passed. For insurance business that is not regulated by state law, other federal laws, such as the Sherman Act, apply.

Insurance laws vary from state to state. A business, especially those who operate in many states, must retain the services of an insurance law attorney as they are knowledgeable of not just insurance law but also other areas of law that may affect insurance, such as taxation, labor laws, and securities law. Similarly, an individual must also retain the services of an insurance law attorney especially if the individual seeks to have properties located in different states insured.

For companies seeking to operate an insurance business, federal and state law are rigid in their requirements for such applications. For one, both the federal and state governments require that these companies maintain sufficient liquidity to cover claims subject to insurance policies. In addition, laws also limit the type of insurance a company can provide based on jurisdiction. It is thus imperative for these businesses to hire insurance law experts.

Both insurer and insured must be prudent in understanding the terms of the insurance policies. One of the issues arising from insurance law would be predatory practices of insurers offering undervalued insurance policies. Insurance is a complicated matter. Interpreting the terms of an insurance policy may need the expertise of an insurance law attorney especially if the buyer is unsophisticated. It is easy for an insurance company to lead a buyer to believe that they are buying one type of insurance and receive another type.

Another area of insurance law that would require the assistance of an attorney would be insurance claims. If the insurance policies were ambiguous, insurers can twist the language of the policies and deny coverage to an unsophisticated buyer. Filing an insurance claim is also tedious as the process often requires numerous paper work to evidence the occurrence of the risk covered by the insurance. In cases of health insurance, the insured need to keep all medical records in order to make a successful insurance claim.

Areas of Law

Car Accident Law - Legal Information and Resources

Car Accident

Each year, thousands die because of motor vehicle crashes. Caraccidents involving the collision of two cars are the most commontype of crashes, although a large percentage of fatalities in caraccidents involve motorcyclists and pedestrians. Because of theincreasing number of property damage, personal injuries and deathsdue to car accidents, states put in place legal rules to determinewho is responsible for the damages resulting from a collision.

Car accident law consists of the principles of negligence, which isgoverned almost entirely by state law. There are differences instate laws governing claims or suits seeking damages resulting fromcar accidents, but typically victims must prove the following: (1)presence of duty of care, (2) breach of such duty, (3) the breachcaused personal injuries or property damage, and (4) and the victimincurred monetary losses.

In terms of duty, drivers are legally obligated to obey traffic rulesand drive their vehicles with reasonable standard of care, whichmeans maintaining safe speed, exercising awareness and observingtraffic signals. During litigation, the existence of duty isgenerally accepted without argument. The plaintiff, however, willneed to prove that the drive breached his or her duty. Breach of dutyis proven through direct or circumstantial evidence. Direct evidenceinclude eyewitnesses, testimony, video footages, or admission offault. Circumstantial evidence include skid marks, paint smudges, oralcohol tests.

The plaintiff must further prove that the breach of duty causedinjuries by demonstrating that the injuries are consistent with thenature of the crash and they were not pre-existing. Moreover, theplaintiff needs to prove that the injuries resulted to monetary loss.Once a jury, after trial, determines that the plaintiff has provenall four elements, the plaintiff will be entitled to compensation fordamages, which include medical expenses, pain and grief, lost wages,among others.

Car accident cases are not complex, but litigating claims for damagesarising from property damage, personal injury or death related to caraccidents is tricky and tedious, requiring plaintiffs to confer withcounsel prior to initiating any suit. For the most part of thelitigation, any act or omission by the plaintiff or defendant maylead to either a win for the plaintiff and defeat for the defendant,or defeat for the plaintiff or win for the defendant. What this meansis that, both parties to car accident litigation must beknowledgeable of how the system works, and not just what the lawprovides, in order to win the case.

For instance, car accident litigation is factual, which means,everything that happened before, during and after the accident mustput in record, and every detail must be taken note of, for theplaintiff or the defendant to build a strong case in his or herfavor. Being factual, the plaintiff or defendant must produce bothdirect and circumstantial evidence to prove their case. There arenumerous rules of evidence that must be taken into consideration sothat an evidence will not be thrown out as unacceptable, weakeningthe case. In addition to winning a case for damages, there is alsoanother complicated matter on seeking compensation from the losingparty's insurance. One is not prevented from representing himself incar accident cases. An expert attorney, however, can protect a clientfrom the opponent's tactics.

Areas of Law