What is Insurance?
Insurance is, “a contract whereby, for a stipulated consideration, one party undertakes to compensate the other for loss on a specified subject by specified perils. The party agreeing to make the compensation is usually called the “insurer” or “underwriter;” the other, the “insured” or “assured;” the agreed consideration, the “premium;” the written contract, a “policy;” the events insured against, “risks” or “perils;” and the subject, right, or interest to be protected, the “insurable interest.” (Black’s Law Dictionary 946. 4th Ed. Rev. 1968)
An insurance policy is a contract in which an individual or entity (the policyholder) pays an insurance company (the insurer) in regular payments in exchange for financial protection over specific risks or losses. For example, medical insurance helps to cover medical costs, such as hospital visits, hospital stays, and medications. Similarly, auto insurance helps to cover damages incurred from car accidents. Insurance payments are known as premiums. Insurance contracts typically limit the amount of costs that an insurance provider may be required to pay.
The McCarran-Ferguson Act (15 U.S.C. § 1011) grants many aspects of insurance regulation to individual state governments. However, federal laws like federal taxes do apply to insurance, and must be acknowledged. Insurance is important to the legal system, as it helps protect individuals, those who cause harm to individuals through negligence, and any third party that is faced with the burden of compensating for an injury.
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At Long Last, Better Underride Guards on Tractor-Trailers
New underride guards to help prevent fatalities in the event of a crash
How about some good news? After years of pressure from safety advocates, semitrailer companies are making changes.
For the first time, the Insurance Institute for Highway Safety has issued the “Toughguard” rating to semi-trailer manufacturers who pass the new underride guard crash tests. Five of eight of the largest North American semitrailer manufacturers earned top honors.
An underride guard is the metal bumper on the rear of a tractor-trailer, designed to keep smaller cars from going underneath the truck in the event of a rear-end crash. However, underride guards frequently prove ineffective, breaking or buckling in a collision. When they fail, cars slide under the rear of the trailer, crushing the cabin, as in the photo below. As you can see in the picture, vehicle occupants stand little chance of survival. […]
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What to Do if Your Vehicle Breaks Down
Car trouble can be a nightmare any time of the year, but winter weather conditions can make even common mishaps more dangerous.
According to PennDOT, it’s Winter Driving Awareness Week. We’ve already shared some winter weather driving tips to help you stay safe in the ice and snow. But what if your car breaks down? The first step to staying safe is to not panic. Check out the tips below in the case of a wintertime breakdown.
What to do if your car breaks down
1. Pay attention to your vehicle and assess the problem. If you notice steering problems, unusual noises, smoke, or other warning signs, remain calm. Don’t forget to be aware of your surroundings; note your location, put your blinker on, and find a place to pull over.
2. Carefully pull off of the road, if possible. The ideal place to pull over is, […]
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The IIHS Announces 2017 Top Safety Picks
Thinking of buying a new car? The Insurance Institute for Highway Safety announced last week their 2017 Top Safety Picks.
Out of 200 models evaluated by the IIHS, 82 vehicles made the cut.
There are two awards categories: Top Safety Pick, and Top Safety Pick Plus. To qualify for either of these lists, vehicles must earn good ratings in a series of crashworthiness tests and advanced or superior ratings for crash prevention. In all, 44 earned Top Safety Pick status, and 38 Top Safety Pick Plus.
2017 Top Safety Pick Criteria
For the 3rd year in a row, automatic braking factored significantly into vehicle safety ratings. Automakers have voluntarily pledged to make automatic braking standard in all new vehicles by 2022. The feature has already become more common in new models. And that’s a good thing — automatic braking systems have been found to reduce rear-end crashes by 50%. […]
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Feds Urge Smartphone Makers to Help Fight Distracted Driving
The National Highway Traffic Safety Administration (NHTSA) faces an uphill battle against distracted driving. Deadly car accidents are on the rise, and electronic distractions – apps, social media, and texting behind the wheel – are to blame.
Car accident fatalities are at their highest since 2009, and 2016 has seen a nearly 10% jump over last year. Insurance companies and safety experts point to driver distraction as the most likely culprit. And it’s easy to see why. In a world where we are almost never disconnected from our phones, many smartphone apps are practically designed for use while driving. To see what an epidemic distracted driving has become, simply look to your left or right when stuck at a traffic light, observes Nick Kurczewski at Cars.com. You will more than likely see one of your fellow drivers looking down at their phone. […]
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Pennsylvania #3 in the U.S. for Deer Collisions
It’s the first day of fall. The new season brings lots to look forward to. But, for Pennsylvania drivers, it also means you’re more likely to encounter a deer on the road.
Pennsylvania is now #3 in the U.S. for deer collisions – up from #4 last year. State Farm estimates that one in 67 Pennsylvania drivers will file an insurance claim for a car accident involving a deer in 2016.
Why does the risk increase in the fall? October through December is deer mating season, which also coincides with hunting season when deer are likely to be on the move. At the same time, days are getting shorter and darkness falls earlier, reducing driver visibility.
Tips to avoid hitting a deer
- Slow down, particularly at dusk and dawn. Especially on rural roads or in wooded areas, it’s important to remember that a large animal could be around the next corner or dart out unexpectedly. […]
