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Insurance Law
| Insurer's Duty of Good Faith and Fair Dealing in Handling Claims of Insureds and Third Parties |
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| If an insured does not think that his insurer handled his claim properly, he may have some recourse. Every contract contains an implied covenant of good faith and fair dealing that neither party will hinder the right of the other to receive the benefits of the contract. The duty imposed by this covenant applies to insurers and insureds. Some courts go so far as to hold the insurer to be a fiduciary to the insured. More... |
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| Treatment of Annuities as Securities |
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| Variable annuities are differentiated from fixed annuities by virtue of how the benefits are funded. In a traditional fixed annuity, an annuitant pays a premium(s) and is guaranteed a certain rate of return over a life expectancy; thus, benefit payments can be determined with precision. In a variable annuity, premium payments are held in a separate account or accounts. More... |
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| Tie-in Arrangements |
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| A "tie-in arrangement," also known as "insurance packing," in the insurance industry consists of a lender's extension of credit to a borrower on the condition that the borrower purchase certain insurance, usually from an insurer with close ties to the lender. The premium amounts for the insurance are usually added to the amount of the loan without the borrower's request or knowledge, and he may not find out about the tie-in arrangement until the lender presents the pre-prepared loan documents at the closing of the loan. More... |
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| Types of Health Insurance |
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| Health insurance can be organized into three categories. They are disability income insurance, medical cost insurance, and accidental injury or death insurance.
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| Types of Adjusters |
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| When an insured files a claim with his insurer to recover for a loss, the insurer may pay the amount requested without question, or it may begin the "adjustment" process. This is the process by which the claim is resolved. Various types of "adjusters" may assist in the adjustment process. More... |
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