Insurance Law Newsletters

Methods of Selling Life Insurance

Life insurance companies may sell their insurance policies through full-time agents, brokerage markets, direct sales, or mass marketing.

Payees of Claims

When a claim is submitted to an insurer under an insurance policy and the insurer determines that it will make payment for the loss incurred, the insurer must then make payment to the proper party. To determine the proper payee of insurance proceeds, an insurer must focus on the rights under the policy rather than the rights of the parties to the insured property. For example, the fact that a party owns the insured property does not mean that he is entitled to the proceeds when a loss occurs. In general, any party with a recognized interest in the proceeds may be entitled to payment. If a party entitled to payment is not paid, the insurer may be subject to multiple liability for the same loss.

The Employers Liability Exclusion to the CGL Policy

There are numerous exclusions to the coverage provided to businesses in a comprehensive general liability or CGL policy. Exclusion E -- Employers Liability -- in the standard form CGL policy results in a lack of coverage under the CGL policy for liability arising from an injury to an employee.

The Meaning of an Insurance Binder

A binder in the insurance industry is a temporary agreement of the insurance company to provide coverage while it seeks to issue a policy based upon the representations made in the application for insurance. The binder may be issued by an insurance agent or an insurance company.

Types of Life Insurance

Each of the two basic types of life insurance--term life insurance and non-term or permanent life insurance--has several variations. Term life insurance is for a specified period of time. Whole life insurance covers the life of a person, however long that life is.