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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CA Family Awarded $29.2 Million in Car Crash Lawsuit
Two children dead, one paralyzed in head-on car crash
The family of two children that died in November 2006 in a head-on collision on Highway 12 near Fairfield, California has been awarded $29.2 million by a Solano County jury. The driver of an SUV crossed the center line and slammed into the oncoming passenger car leaving the two children dead, one child paralyzed from the waist down and the mother, and driver of the car, in the hospital for 2 months recovering from her injuries.
The driver of the SUV was traveling close to 80 MPH and attempted to pass two vehicles in a no-passing zone. He was sentenced to 23 years in prison. He was found 65% liable in the case, but due to his limited insurance coverage the state will pay the majority of the award.
The state was found 35% responsible in the case for unsafe conditions on the roadway. […]
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Oklahoma Mother Files $10 Million Wrongful Death Lawsuit Against Prison
The mother of a man from Tecumseh, Oklahoma has filed a $10 million lawsuit against a prison corporation and the state in the death of her son.
Her son and his wife were vacationing in New Mexico when they were killed by two prisoners who had escaped from an Arizona prison. The lawsuit was filed against the company operating the private prison, Management & Training Corporation of Delaware, and claims the state failed to maintain the inmates and properly train the employees.
Losing a loved due to someone else’s negligence can be difficult to understand. When you are grieving, hurt and worried about the future, it is uncomfortable to talk about insurance claims, wrongful death settlements, and cash awards; however, if someone caused your loved one’s death you should seek the compensation you deserve. At Munley, Munley & Cartwright we represent individuals and families that have lost a loved one or been seriously injured due to the negligence of another. […]
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$3.5 Million Awarded In Wrongful Death Logging Truck Accident
Speeding truck with faulty brakes causes fatal trucking crash
A Chilton County, Alabama jury has awarded $3.5 million to the family of a man killed when the van he was driving was crushed between two logging trucks, reports the Montgomery Advertiser.
Ken Gorum Trucking and Gary Fruge, the driver of the logging truck, were held responsible for the accident and have been ordered to pay the award. The jury found Fruge was speeding, and the truck had defective brakes, when it crashed into the victim’s van.
The victim’s car was pushed into the logs on the truck in front of him, causing the logs to come through his windshield – one went through his head and killed him. Although the driver claims he was going only 45 miles per hour, evidence suggests he was traveling between 65 and 75 mph.
Progressive Insurance Co, […]
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Never Means Never Under New Policy Under Medicare
Editor: In this world of skyrocketing health-care costs and financial crises, some good news has finally come to the average American consumer and taxpayer.
Last week, Medicare changed its rules to withhold payment for certain “never events” — medical mistakes that should never occur, such as administering the wrong blood type or leaving an instrument inside a surgical patient. Medicare also says it won’t pay for serious bed sores, injuries from falls and urinary tract infections caused by catheters, among other things. Four state Medicaid programs, including Pennsylvania, as well as several of the nation’s largest health insurers, are following suit.
It’s about time. Unlike any other service we consume, we have been living — and dying — with a U.S. health-care system that rewards mistakes and profits by making patients sicker. Hospitals that fail to prevent deadly post-operative infections, turning three-day stays into three-month stays, […]
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The Limbo Stage: 21 Days to Accept or Deny
Once you have given notice of your injury to your employer, their insurance carrier has 21 days under the Workers’ Compensation Act to either accept or deny your claim for benefits. During this period of time, you are basically in limbo.
To accept the claim, the insurance carrier needs to file either one of two notices with the Bureau in Harrisburg. The first notice is a notice of temporary compensation payable. As the name implies, this notice temporarily accepts the claim for a period of 90 days to give the insurance carrier additional time to investigate your claim before making its final determination.
Prior to the end of the 90-day period, if the insurance carrier wishes to deny your benefits, they are required to file notice stopping temporary compensation. If the insurance carrier does not file the notice stopping the temporary benefits in the allotted time, […]
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