قالب وردپرس درنا توس
Home / Insurance / What is insurance? | Zalma on insurance

What is insurance? | Zalma on insurance



In insurances are agreements. To form an agreement, an insurer must submit an offer that is accepted by a potential insured who then pays consideration – premiums – for the insurer's promises. Insurance contracts, like all contracts, can only exist if there is an offer, acceptance of the offer and payment of consideration.

An insurance contract exists when an insurer and the insured agree that the insurer will give the insured compensation as a result of a conditional or unknown event that causes loss to the insured.

The language of insurance contracts is available in several formats with an almost infinite number of conditions. I have personally collected, over the past 54 years, approximately 17 linear feet of several insurance forms created by the Insurance Services Office (“ISO”), Standard and individual insurance companies' specialty forms. Since the advent of the Internet, I have also collected gigabytes of insurance forms because paper has given way to digital insurance letter wordings.

It is known that an insurance contract can be written so that it contains almost any term that the parties to it choose. I State Farm Fire & Cas. Co. v. Slade 747 So. 2d 293, 313 (Ala. 1999), the court stated that "the language of insurance contracts exists in several formats with an almost infinite number of conditions." The parties are free to enter into insurance contracts specifying the coverage as long as the terms of the contract do not contravene state law or public order. "[ American Motorists Insurance Company v. R & S Meats, Inc. 526 NW2d 791, 793 (Wis 1994].]

Since the interpretation of the legal text of an insurance contract is always a matter left to the court alone, it is not a matter to be presented to a jury as a fact finder. If the wording is clear and it unequivocally expresses the intention of the parties, courts will enforce the insurance contract as it is written and may not change its terms in the light of contract interpretation, but, which will be discussed in more detail later, the wording of the insurance contract, it will interpret the contract in favor of the policyholder.

PROPERTY INSURANCE

Property insurance does not insure e property. It insures persons who have an interest in real estate or personal property and who risk losing that property to unknown or contingent hazards. Most property insurances insure against all direct risks of physical loss that are not excluded or the risk of loss due to hazards listed in the insurance such as fire, lightning, storms or hail. The risk of loss is spread among the insurer's customers so that the cost of the insurance is affordable. It is called "first party" insurance against risks to property where the insured (the first party in the insurance contract) has an interest and from whose loss the insured would be injured. The insurer, given the ancient way of describing contracting parties, is considered to be the other party to the contract. as a result of an injury due to a danger insured against – before he or she can pick up. Failure to be an insured listed on the insurance or by definition – regardless of the extent of the insurable interest – deprives the person of the right to the benefits of the insurance. Failure to maintain an insurable interest – even if it is stated as an insured by the insurance – deprives the person of the right to the benefits from the insurance.

In order to receive that compensation, the insured must also fulfill the promises he, she or it made. to prove his loss and cooperate with the insurer's investigation.

Contract for personal indemnity

First party property insurance is an agreement on personal indemnity. The insurer promises to compensate the first party, the insured, in the event that the insured suffers damage as a result of any of the dangers that the wording of the insurance insures against. Insurance does not follow the ownership of the land. The insurer gives a promise to the first party, the insured, that if there is a loss of property that the insured has an interest in, to pay compensation for the damage. The "elementary principle of insurance law that fire insurance" is an agreement on personal compensation, "not an agreement from which a profit is to be realized." [ Cigna Property & Cas. Ins. Co. v. Verzi, 684 A.2d 486, 112 Md.App. 137 (Md. App. 1995)]

The insurance claims adjuster (adjuster) must always ensure that the owner, or a person with some other insurable interest in the property, is the insured and that the insured has an interest in the property. Failure to do so may result in the insurer paying the wrong person or paying a person without the right to the benefits promised by the insurance. The income from an insurance on an insured's interest is not subject to claims from others who have an interest in the property but who are not listed as insured or who do not qualify as insured by definition. is considered by courts that are called upon to interpret the terms of the insurance, an agreement on personal compensation. It is an agreement made with the protected individual. The insurance does not come with the property as an incident to anyone who can buy that property. If it works at all, it goes as a contractual issue for the transfer of the insurance. [ Estate of Cartwright v. Standard Fire Ins. Co ., No. M2007-02691-COA-R3-CV, 2008 WL 4367573, * 2 (Tenn. Ct.App. 23 Sept. 2008) (notes that "[the insurance contract] is also a purely personal contract between the insured and the insurance company, and which is not linked to or runs with the ownership of the insured's property without an agreement to transfer the insurance. ” Fulton Bellows, LLC v. Federal Ins. Co ., 662 F.Supp.2d 976 (ED Tenn., 2009

It is a basic principle of insurance law that fire insurance is an agreement on personal compensation, not an agreement from which profit is to be taken out. Realized. The right to recover must be in proportion to the actual loss. [ Glens Falls Ins. Co. v. Sterling 219 Md. 217, 222, 148 A.2d 453, 456 (Ct. .1959); Starkman v. Sigmond 446 A.2d 1249, 184 NJSuper. 600 (NJ Super., 1982)]

It is important that everyone in the insurance industry understands what insurance is and how it is created as a way to replace the risks of loss to every citizen.


© 2021 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to the position of insurance consultant specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders.

He also acts as an arbitrator. insurance-related disputes. He practiced law in California for more than 44 years as a lawyer for insurance coverage and claims management and more than 54 years in the insurance industry.

Subscribe to Excellence in Claims Handling at https://barryzalma.substack.com/welcome.

He is available at http://www.zalma.com and zalma@zalma.com. Zalma is the first recipient of the first annual Claims Magazine / ACE Legend Award. For the past 53 years, Barry Zalma has devoted his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to enable insurers and their claimants to become professionals in insurance claims.

Go to training available at https://claimschool.com; articles at https://zalma.substack.com, the podcast Zalma On Insurance at https://anchor.fm/barry-zalma; Follow Mr Zalma on Twitter at https://twitter.com/bzalma ; Go to Barry Zalma videos at https://www.rumble.com/zalma; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg; Go to Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/ T the last two issues of ZIFL are available at https://zalma.com/zalmas-insurance-fraud- letter -2 / podcast now available at https://podcasts.apple.com/us/podcast/zalma-on-insurance/id1509583809?uo=4


Source link