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Insurance by Mind Map: Insurance
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Insurance

WHAT IS INSURANCE? Insurance is a type of contract between a person (the insured) and an entity (the insurance company). The insured pays a premium (money) to the insurance company in exchange for the company’s promise to pay (or indemnify) for the insured’s property loss, medical bills, funeral expenses, liability, and so on, up to a specific amount. Nearly anything can be insured, as long as public policy is not violated.

1. What is Insurance?

WHAT IS INSURANCE? Insurance is a type of contract between a person (the insured) and an entity (the insurance company). The insured pays a premium (money) to the insurance company in exchange for the company’s promise to pay (or indemnify) for the insured’s property loss, medical bills, funeral expenses, liability, and so on, up to a specific amount. Nearly anything can be insured, as long as public policy is not violated.

The Insurance Contract

The Insurance Policy

State Laws Governing Insurance

2. Automobile Insurance

AUTOMOBILE INSURANCE Car accidents generate most personal injury lawsuits. That, alone, makes auto insurance worth studying. However, because it is required by law, a study of the topic is even more important. Automobile insurance coverage usually falls into categories that are discussed further in the subtopics.

Laibility Coverage

Typical Provisions

"No-Fault" Insurance

Exclusions

3. Insurance and Lawsuits

INSURANCE AND LAWSUITS The Plaintiff’s attorney will want to know as early as possible whether the Defendant has insurance coverage. It will be important to know, as well, the limits on the policy. Settlement, especially if the insurance company offers the policy limit to the Plaintiff, is in the Plaintiff’s interests because he or she may not receive as much from a jury verdict. If the jury does award more than the policy limit, the Defendant may not have the means to pay the verdict. Plaintiff’s lawyers usually take the case on a contingency bases, which means that the lawyer does not get paid unless the lawsuit is won. If the lawyer wins, the typical “cut” is 1/3 of the award (or settlement amount). If the lawyer loses the case, he or she receives nothing for the time put into the cse. Defense firms that represent the insurance companies usually do so at an hourly fee. The lawyer sends detailed hourly billings to the company each month so that the insurance company can see exactly what the lawyer has done. When both sides of the lawsuit wish to settle, they are actually creating a kind of contract. One side promises to do something in exchange for a promise of payment from the other side. Releases are official relinquishment (a giving up) of the Plaintiff’s claim against the Defendant in exchange for the money payment through the settlement. When the Plaintiff signs the release, he or she is giving up all possible actions he or she may have against the Defendant. As a result, the lawsuit is dismissed, often “with prejudice,” which means that the Plaintiff cannot bring the suit again.

KEY-Click Circle

  A circle with lines in it indicates that there are notes associated with the topic. A circle with a plus sign indicates that there are further subtopics to be found by clicking the circle. You will find a printer-friendly version of this mindmap and the notes in DocSharing, located on the tabs at the top of your course pages.