Insurance Law



Insurance Law is, as the name implies, the body of law pertaining to insurance. This includes insurance policies, insurance claims, insurance regulations and rates, and recently enacted laws, like the Affordable Care Act. Basically, insurance law can be broken into three categories: the business of insurance, the content of insurance policies, and the handling of claims.

Business of Insurance

These laws affect the requirements for companies wishing to operate the insurance industry. These laws can vary widely from state to state, but can affect things like ensuring the insurance company will have sufficient liquidity to cover claims in the event of catastrophic events or natural disasters. These laws also govern licensing insurance companies, regulating who insurance companies can turn away from coverage, the types of insurance a company must offer in a jurisdiction if it wishes to offer other policies, and many others.

Content of Insurance Policies

Laws related to the content of insurance policies are designed to prevent predatory practices that would essentially let insurers offer worthless or diminished value policies. They also prevent insurers from misleading clauses and titles on policies that would allow an unsophisticated buyer to believe that they are buying one type of insurance but receive another. These laws also govern other provisions, like reasonable cancellation, disclosures to third parties, and delineations of insured and uninsured events.

Handling of Claims

These laws affect how insurance companies must respond when a claim is made. They prevent insurance companies from denying claims unreasonably. They also prevent insurance companies, in certain instances, from canceling policies simply for making claims. They also affect how insureds can make claims and what happens if someone attempts to make a fraudulent claim.

Affordable Care Act / "Obamacare"

The Patient Protection and Affordable Health Care Act, also known simply as the Affordable Care Act or "Obamacare," is a sweeping set of federal laws designed to increase the quality and affordability of health insurance, lower the rate of uninsured Americans by increasing public and private insurance coverage, and reduce the costs of healthcare for both individual citizens and the government. To do this, it uses a number of mechanisms, like mandates, subsidies, and insurance exchanges, to promote coverage and affordability. The Affordable Care Act also requires insurance companies to cover all applicants, including those with preexisting medical conditions and without regard to gender, provided they meet new minimum standards for coverage.

Although the Affordable Care Act has been a hot button issue for political controversy, the United States Supreme Court upheld the constitutionality of the Affordable Care Act in the case of National Federation of Independent Business v. Sebelius. However, the Court also held in that case that states cannot be forced to participate in the Affordable Care Act's Medicaid expansion under penalty of losing their current Medicaid funding. Since that ruling, politicians have hotly contested the law's implementation, including a bid by Congressional conservatives to force a repeal of the law by exercising Congress's "purse power" and allowing a brief federal government shut down to occur in 2013 rather than pass a budget that included funding for the implementation of the Act.

If you have questions about insurance laws, you can review the materials found below for more information or use our Law Firms page to find an attorney in your area who can assist you.

Copyright HG.org



Insurance - Know Your Rights!

  • A Guide to Insurance Law

    Insurance law is the practice of law that deals with regulations that surround insurance policies. There are laws governing insurance companies, regulating them to ensure fairness and legality. In this comprehensive guide to insurance law in the United States, learn about different types of insurance such as homeowner's insurance, life insurance, and automobile insurance. In addition, get information about how to contest a denied insurance settlement claim.

  • If You Ever Work From Home, How Protected Are You If A Disaster Strikes?

    Millions of Americans work from home, either all of the time or on occasion. But, if a fire, flood, or natural disaster were to hit your home, would your insurance cover the lost business revenues, office equipment, or property belonging to your company?

  • Legally Speaking, What is an Act of God?

    Contracts talk about them, statutes mention them, even TV sitcoms joke about them, but what are acts of God? Many people might think they have a good idea, but given that insurance is often designed to protect against most catastrophes except acts of God, how confident are you that you actually know what is covered?

  • What is the Difference Between Short- and Long-Term Disability Coverage?

    In simplest terms, short-term disability (also known as "STD") covers a percentage of an insured person's lost salary should injury or illness prevent them from working for more than a few days. Long-term disability (also known as "LTD"), on the other hand, is designed to protect an insured from catastrophic illness or injury that permanently end the insured's ability to earn a paycheck.

  • What To Do After a Tornado or Other Natural Disaster

    When any sort of natural disaster hits, it can be terrifying. Once it has passed, though, victims are often left wondering what they need to do to pick up the pieces. Is there anything they need to do in filing their insurance claims to make sure that they will get paid soon and as much as possible?

Insurance Law Articles

  • Insurance Company Bad Faith Tactics and Examples in Mississippi
    Countless Americans rely on insurance coverage of many types to be there for them when and if disaster or tragedy strikes. Insurance is supposed to provide coverage for unexpected events such as medical issues, the death of a loved one, a work accident, a destructive fire, a hurricane, or a motor vehicle accident. In short, insurance is supposed to provide “peace of mind.” An insurance policy is a contract between the insurance company and the policyholder or insured. Just like any other type of contract, both parties have rights and responsibilities. Insureds must pay their premiums and notify the insurer promptly of claims. If the insured fails to uphold certain responsibilities, the insurance company may be able to cancel their coverage or deny an otherwise valid claim.
  • Drownings in Arizona: Know the Law and Save Lives
    The haunting trend of drowning accidents at Lake Pleasant has taken a distressing turn, with eight tragic deaths already recorded in 2023. Shockingly, five of these fatalities occurred after Memorial Day, indicating a spike over six weeks. Maricopa County Supervisor Thomas Galvin voiced his alarm earlier this summer expressing deep concern about the number of rising, fatal boating accidents transpiring on our cherished lakes.
  • Beneficiary Designations in Estate Planning
    Estate planning is a critical aspect of financial management that allows individuals to ensure the smooth transition of their assets, values, and legacies to their loved ones after their passing. While many people associate estate planning with wills and trusts, one often overlooked aspect that plays a crucial role in the process is beneficiary designations. These designations allow you to designate individuals or your trust to receive specific assets upon your death. This process bypasses the probate process and provides numerous benefits for both you and your beneficiaries.
  • Iowa's Minimum Car Insurance Requirement
    Vehicle crashes in Iowa are commonplace - within three days in June 2023, major news outlets reported a fatal accident between a car and motorcyclist in Des Moines, two fatalities when a car failed to yield at an intersection in Lee County, and a car that sideswiped two trucks in Warren County before crashing, resulting in the deaths of the driver and a passenger. The Iowa Department of Transportation keeps careful records of fatal crash statistics. In 2022, 338 people died in vehicle crashes.
  • Defending Insurance Fraud Accusations in Texas
    Overview of Insurance Fraud in Texas Insurance fraud is a white-collar crime that occurs when an individual or entity intentionally provides false or misleading information to an insurance company for financial gain. In Texas, insurance fraud can be charged under the Texas Penal Code Section 35.02, which makes it illegal to knowingly or intentionally engage in fraudulent activities related to insurance claims or policies. If you have been accused of insurance fraud in Texas, contact Varghese Summersett as soon as possible. Our team of criminal defense attorneys includes Board Certified specialists and former prosecutors with more than four decades of combined experience fighting insurance fraud claims.
  • Car Accidents With Uninsured Drivers in Texas
    Being involved in a car accident can be an incredibly stressful experience. In many cases, collisions between vehicles can cause multiple types of serious injuries, including traumatic brain injuries, spinal cord injuries, broken bones, whiplash, sprains, strained muscles, dislocated joints, cuts and lacerations, severe bruises, or burn injuries. These injuries may require both emergency medical treatment and ongoing care, and they may result in temporary or permanent disabilities that affect your ability to earn an income. However, even a relatively minor accident can result in a variety of expenses, financial losses, and other issues that affect your life and your financial stability.
  • How to File a Truck Accident Claim in Tennessee
    For many truck accident victims in Tennessee, pursuing a civil claim against the responsible parties provides a path to securing financial compensation for losses due to the crash.
  • Why Is Life Insurance Important for Estate Planning?
    The whole point of purchasing life insurance is to ensure that your loved ones have a layer of financial protection and resources after you’ve passed. Likewise, the entire point of estate planning is to ensure that there are several more layers of financial protection for your family while also safeguarding your assets. Therefore, it should be no surprise that when the two are strategically combined, you’ll have an invaluable plan for providing your family with the financial support they need should you pass on early. The key is understanding how you can integrate them into a comprehensive plan. There’s a lot to learn when it comes to making these two methods work together. This article is your guide to planning your estate around your life insurance plan, as we’ll cover everything you need to know and more.
  • How Does Uninsured Motorist Coverage Work in California?
    State law requires California motorists to demonstrate financial responsibility for covering damages for accidents they cause. Most drivers achieve this through auto insurance coverage. However, sometimes drivers don’t follow the rules.
  • PBM Audits for Pharmacies: 9 Keys to a Strong Defense
    For most pharmacies, working with a pharmacy benefit manager (PBM) is a necessity. PBMs serve as intermediaries between pharmacies and private health insurance companies and drug manufacturers. Unfortunately, while the PBM model was originally intended to provide administrative efficiencies (and thus reduce costs) for all parties involved, as the National Community Pharmacists Association (NCPA) explains, “[a] lack of transparency in PBM practices has led several states to implement . . . fair pharmacy audit . . . legislation to try to level the playing field for pharmacies.”
  • All Insurance and Reinsurance Law Articles

    Articles written by attorneys and experts worldwide discussing legal aspects related to Insurance and Reinsurance including: bad faith insurance, insurance defense, insurance fraud and medical insurance.



Find a Lawyer