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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The IIHS Suggests Toughening Up Pennsylvania’s Graduated License Program
Pennsylvania’s graduated licensing (GDL) program has been identified by the Insurance Institute for Highway Safety (IIHS) as one of the best GDL programs in the nation. In a recent study, the IIHS honed in on five components of GDL’s that can improve safety among teen drivers. Although PA meets many of the requirements, there is still room for improvement.
In March, we offered detailed information about the GDL after the USA Today did a featured story on teen driving. In 2010, Governor Tom Corbett tightened the restrictions for teen drivers by enhancing the GDL. However, the IIHS believes that by adding even stricter requirements in Pennsylvania, the state could see a 27% reduction in teen accidents.
In 2010, there were 27,149 crashes involving drivers between the ages of 16 and 20. There were 57 car crash deaths in accidents in 2010 that involved a 16- or 17-year-old driver. […]
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Text message sender is sued in distracted driving accident
Victims in distracted driving accident claim sender of text message enabled driver to be distracted
The victims of a distracted driving accident are making history in the lawsuit they have filed for damages. A man and his wife who both lost their left legs when the motorcycle they were riding was struck by a driver who was texting are suing the sender of the text message as well as the driver.
The driver of the car that struck the New Jersey couple in Sept. 2009 pled guilty to using a hand-held cellphone while driving, careless driving, and failure to maintain a lane. The man was sentenced to $775 in fines and was ordered to speak about the dangers of texting and driving at local high schools, according to the article in the New York Daily News.
The couple is seeking damage for medical costs related to their injuries. […]
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Global Youth Traffic Safety Month Begins
Just Friday we presented information from a study that shows that teenage drivers are in denial that they will be the cause of a distracted driving accident. That may not be the case for all teens, however, and the National Organizations for Youth Safety (NOYS) is hoping to rally teen safety advocates to help spread the word to other teens to drive safely.
NOYS announced Tuesday the start of Global Youth Traffic Safety Month. With a focus on a safe summer, the campaign is “targeting young drivers to commit to the safest summer ever to put an end to motor vehicle crashes.
According to the National Highway Traffic Safety Administration (NHTSA), drivers aged 15- to 20-years old are especially vulnerable to death and injury on U.S. roadways. In fact, traffic crashes are the leading cause of death for teenagers in America with approximately 5,000 teenagers killed every year. […]
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PA Drivers: Keep Both Hands on the Wheel!
Studies on distracted driving seem to be dominating the news. The Centers for Disease Control and Prevention (CDC) reports that 15 people die, and 1,200 more are injured, nationwide every day due to an accident caused by a distracted driver. While cellphone use is the primary focus of distracted driving campaigns, a new study found that when a driver has just one hand on the steering wheel the risk of an accident increases.
In a study conducted using a driving simulator in Great Britain, researchers at the University of Leeds found that people who eat while driving have a reaction time that is 44 percent slower than those who have both hands on the wheel. The report, “Two Hands are Better Than One,” also found that drivers who sip coffee while behind the wheel are 22 percent slower in their reaction speed and were 18 per cent more likely be unable to maintain a steady central lane position. […]
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Pennsylvania Graduated License Program Aimed at Saving Teen Lives
The National Highway Traffic Safety Administration (NHTSA) reports automobile accidents are the number one cause of death for teens. Last month we urged teenagers in Pennsylvania to focus on driving carefully and following the laws when taking to the local highways to help prevent other teens from becoming a statistic. Last Thursday, the USA Today, also hoping to get the message out that teen drivers are at risk on America’s highways, published a special report entitled “Making Teen Driving Safer.”
Although the USA Today points out that nationwide deaths for 16- and 17-year-old drivers declined between 2007 and 2010, the special report hones in on the fact that every day, an average of 11 teenagers die in car crashes in the United States. The teen driving section is, in part, sponsored by Allstate Insurance that is sponsoring the “Save11” campaign to encourage Congress to pass the STANDUP Act. […]
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