Insurance laws- two words when combined and uttered aloud have been found to do the work of several Ambien. In all actuality this topic is a very fascinating and exciting one but just in case pull up a bed while we further discuss the subject. We will come at this topic from an overview perspective, which leaves plenty of room for further research into more narrow insurance aspects. When there is a lack of insurance, three possible individuals potentially must bear the burden of an economic loss; (in layman's terms: somebody's going to have to pay for this!) the individual suffering the loss; the individual causing the loss via negligence or unlawful legal conduct; or a particular party who has been allocated the burden by the legislature (workers' compensation being a good example).
Now what does this have to do with insurance law? Patience; we are getting there and getting there is half the fun. While there are many types of insurance ( life, auto, home, health, pet), their primary goal is to allocate the risks of a loss from the individual to a great number of people. That's right; everyone else in the insurance pool gets to pay for someone else's insurance claim. That is where the term 'crap shoot' really originated. Each individual gets the opportunity to pay a 'premium' to join the pool, from which the losses are paid out (you can choose your friends but not your family or fellow insurance pool buddies). The fun part for the insurance company is if everyone minds their p's and q's they get to keep the premium whether or not an individual ever suffers a loss. Now because this can get a little too much fun for an insurance company the government and the courts, in the interest of maintaining economic stability, use a heavy hand in ensuring these said companies are regulated and treat the consumer fairly.
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