Insurance law pertains the relationship created by an insurance policy. Insurance policies can cover a variety of risks, such as death, title issues on property, and damages caused by third-parties. Although insurance is one of the most highly-regulated industries, the majority of an insured’s rights come from the policy documents.
Common Insurance Law Issues
Insurance law includes subrogation, regulatory issues, and disputes between policyholders and their insurers (usually about whether a claim was wrongfully denied).
Subrogation, which is commonly divided into auto-subrogation and real property
subrogation, allows insurance companies to step into the shoes of their insureds and seek reimbursement from third-parties.
Coverage issues are most often determined by the scope of the policy agreement. Insurance companies who deny an insurance claim without an adequate basis may be hit with a lawsuit for dealing in bad faith or a breach of the implied covenant of good faith and fair dealing.
Handling Insurance Law Disputes
Insurance policies commonly (but do not always) allow disputes with the policyholders to be resolved in arbitration.
With limited exceptions, such as personal injury protection
claims, subrogation issues should be resolved in court.