Insurance policies come in all varieties. If something is valuable and its loss would cause harm to one's livelihood, it can likely be insured with some type of coverage.
By Oni Harton, J.D. | Legally reviewed by Melissa Bender, Esq. | Last reviewed December 04, 2024
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Learn about insurance basics, insurance claims, insurance policies, buying and selling insurance, and insurance lawsuits in this section on FindLaw.com.
In some instances, you must purchase insurance. Mortgage lenders, in general, require title insurance. Also, almost every state requires motorists to have a minimum liability insurance dictated by state law.
If you're a physician or an attorney, you'll need to have liability insurance to protect against the cost of a potential malpractice suit. Most employers must carry workers' compensation insurance to cover employees' work-related injuries and illnesses.
Some insurance policies are voluntary. For instance, if you live in an area of the country prone to earthquakes, you might consider getting earthquake insurance. Some pet owners, particularly those with special needs animals, may consider taking out a pet insurance policy. A farmer whose livelihood depends on the seasonal health of vulnerable assets may purchase crop insurance.
Which type and how much insurance you purchase depends on what you have to lose, the likelihood of such an event, and its effect on your finances.
Just about any insurable interest can be covered by insurance. An insurable interest exists when you derive a benefit, financial or otherwise, from the continuous existence of the insured item.
The lives of family members and loved ones may also be insured, with a payout available to the policyholder upon their death.
For most insurance consumers, insurance coverage requirements center primarily around:
Other types of insurance include the following:
Concerning health insurance, enrollment in an insurance plan can occur through the private or public market. For example, the federal government administers insurance programs such as:
Understanding which insurance plan coverage is in your policy will help you make smarter decisions. Insurance is a contract like all other contracts. No one should enter into a contract without understanding its terms. In exchange for the insured or other party paying the premiums owed by the insured, an insurance company owes specific duties to the insured when handling claims.
FindLaw's Insurance section covers various insurance-related topics, including summaries of the different types of policies, how to file a claim, your legal options when things go wrong, and more.
In insurance, bad faith can refer to misleading tactics insurance companies use to defraud unsuspecting policyholders. Bad faith can also refer to insurance claims filed in bad faith, such as insurance fraud and scams.
In either case, one of the two parties is not living up to its legal obligations to the other. For instance, your healthcare provider advises you of a critical procedure for your health condition. You schedule or have the procedure, but your health insurer and its adjusters balk at an expensive but crucial and covered medical procedure. In such a case, the policyholder may pursue an insurance bad faith tort claim against the insurer.
Your state department of insurance (insurance regulatory agency), led by an insurance commissioner under state law, plays a critical role in the insurance industry. These government entities handle various insurance-related issues and consumer complaints. These entities also address other consumer protection issues.
The National Association of Insurance Commissioners (NAIC) also supports state insurance regulators. NAIC seeks to support state insurance regulators and related stakeholders. It aims to ensure fair, competitive, and robust insurance markets.
The NAIC sets initiatives that help determine best practices and support functions for insurance consumer services and provides regulatory support functions to help support compliant and informed decisions.
Learn more about insurance, including state-by-state insurance laws, how to understand your insurance policy, and the insurance claims process using FindLaw's insurance resources.
If you are an insurance premium holder with questions about your coverage or are having trouble getting the assistance you need from your insurance agent, an insurance lawyer can help. Find a local insurance law attorney near you to assist. The referrals and contact information on FindLaw's official website can get you the assistance you seek.
