DEFINITION

• Insurance is a contract in which one party pays money (called a premium) and the other party promises to reimburse the first for specified types of losses (illness, property damage, or death) if they occur.

• The party agreeing to compensate for losses is called the insurer or underwriter, who writes the policy.

• The party who pays for this protection is called the insured. This is the person who takes out the insurance policy.

• Common types of insurance are automobile liability insurance, homeowners' insurance, life insurance, title insurance, malpractice insurance and workers' compensation insurance.

• Insurance laws are highly regulated. A seller of insurance must be licensed by the state or states in which it does business.

• States usually have a governmental agency specifically devoted to regulating the business of insurance. These agencies also investigate complaints against insurance companies or insurance agents. State and federal laws limit and interpret insurance agreements, as do decisions of each state's courts.

FIND AN INSURANCE LAW ATTORNEY IN YOUR AREA.

RELATED PRACTICE AREAS

Personal Injury -- Plaintiff
Product Liability
Medical Malpractice
Health & Healthcare Law
Ethics & Professional Responsibility

BUZZWORDS

Automobile liability insurance - Protection against payment for injury to other persons or their property from an accident involving your car.

Homeowner's insurance - A policy that protects a homeowner from fire, theft, and/or premises liability.

Insured - The person who obtains or is otherwise covered by insurance on his or her life, health, or property. The policy is not limited to the insured named in the policy, but applies to anyone who is insured under the policy.

Insurer - The underwriter or insurance company with whom a contract of insurance is made.  The insurer is the one who assumes risk in return for the premium.

Life insurance - Payment to beneficiaries at the insured's death in exchange for the premium paid during the insured's lifetime.

Malpractice Insurance - Protection of professional people (attorneys, doctors or accountants) against claims of liability.

Title Insurance - Protection against claims disputing the title to land you own.

Workers' Compensation Insurance - Payment for injury caused in the scope of employment.

PRACTICE AREA NOTES

• As with any controversy, there are attorneys on both sides of any insurance issue. For example, in a personal injury matter the plaintiff's attorney filing the lawsuit is usually referred to as "personal injury attorney," while the attorney defending the lawsuit is usually paid by an insurance company. The latter type of attorney is called an "insurance defense attorney."
• Attorneys practicing in Insurance Law may be insurance defense attorneys, counsel for an insurance company, or may be "captured counsel." Captured counsel refers to a law firm that from the outside looks and operates like a regular law firm, but does exclusive work for an insurance company.
• Almost every legal practice touches Insurance Law issues in some context. Real estate attorneys may recommend title insurance. Estate and elder attorneys may recommend life insurance or long-term care (health) insurance. Personal injury attorneys may review automobile coverage to determine what compensation their clients should receive.  All attorneys are generally required to have some form of malpractice insurance.
• An insurance adjuster will usually handle the preliminary issues surrounding a claim or loss. If an adjuster cannot settle a claim, or if a complaint is filed in court, the case will usually be passed to an in-house attorney or to outside counsel. The insurance adjuster will stay abreast of the matter, but only in a supervisory capacity.