The immediate case shows once again the dangers of the current complex structuring of insurance policies. Unfortunately, the insurance industry is addicted to the practice of constructing a condition or exception in the form of a Babel language tower in the policies. We join other courts and deplore a trend that plunges policyholders into a state of insecurity and places the task of resolving it on justice. We reaffirm our advocacy for clarity and simplicity in policies that serve such an important public service. [20] Insurance contracts have traditionally been written on the basis of each type of risk (for which risks have been very narrowly defined) and a separate premium has been calculated and charged for each price based on risk. Only the specific risks expressly described or “considered” in the directive were covered; This is why these guidelines are now referred to as “individual” or “schedule” guidelines. [13] This system of “designated hazards”[14] or “specific dangers”[15] proved untenable in the context of the Second Industrial Revolution, as a typical large conglomerate could have dozens of types of risks that can be insured against. For example, in 1926, a spokesperson for the insurance industry indicated that a bakery had to purchase a separate policy for each of the following risks: manufacturing operations, elevators, teamsters, product liability, contractual liability (for a track that connects the bakery to a nearby railway), domestic liability (for a retail store) and the responsibility of protecting owners (negligence of contractors responsible for construction modifications). [13] If a complete policy is more expensive than you want to pay and a simple or designated hazard policy is not appropriate, a compromise at an average price is the broad insurance policy. This directive offers comprehensive coverage of big ticket items, such as . B the building, as well as the designated danger cover for the contents.

The insurance policy or contract is a contract by which the insurer promises to pay benefits to the insured or, on his behalf, to a third party if certain events occur. Subject to the “Fortuity” principle, the event must be uncertain. The uncertainty may be either when the event will occur (for example. B in life insurance, the date of the insured`s death is uncertain) or whether it will occur (for example. B in fire insurance, whether or not there is a fire). [4] Insurance coverage helps consumers recover financially from unforeseen events such as car accidents or the loss of an income-generating adult who supports a family. Insurance coverage is often determined by several factors. However, the wording of “all-risk coverage” is somewhat misleading, as all insurance policies contain many exclusions. As a result, most insurance policies tend not to use this language to describe their policies. It is more common for insurers to use terms such as “special dangerous coverage” to describe this type of insurance policy. For an “all-risk” type of coverage, the onus is generally on the insurer to prove that the right is not covered (not the insured`s responsibility to prove that the right is covered). Sometimes there is a distinction between public and private insurance.

Public (or social) insurance includes social security, Medicare, temporary disability insurance, etc. funded by government plans. On the other hand, private insurance plans are all types of coverage offered by private companies or organizations. Private insurance is at the heart of this chapter. Protect your most precious possession. Make sure your insurance is up to date with the checklist and tips in this brochure. Insurance regulation remains primarily in the hands of public authorities, not the federal authorities. Under the McCarran-Ferguson Act, Congress exempted state-regulated insurance companies from federal cartel laws. Each state now has an insurance service that monitors insurance rates, insurance standards, reserves and other aspects of the sector.