Insurance Law Guide, Resources & information

Insurance means promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company.In the absence of insurance, three possible individuals bear the essence of an economic loss; the individual enduring the loss; the individual causing the loss via negligence or unlawful conduct; or lastly, a particular party who has been allocated the burden by the legislature, such as employers under Workmen's Compensation statutes.

While types of insurance vary widely, their primary goal is to distribute according to a plan or set apart for a special purpose of the risks of a loss from the individual to a great number of people. Each individual pays a "premium" into a pool, from which losses are paid out. without regard to drawbacks of whether the particular individual suffers the loss or not the premium is not returnable. Thus, when a building burns down, the loss is spread to the people contributing to the pool. In general, insurance companies are the safekeepers of the premiums. Because of its importance in maintaining economic stability, the government and the courts use a heavy hand in ensuring these companies are regulated and fair to the consumer.

Know your rights and exercise them for a safe, better future.