Insurance can be pretty confusing. To begin with, you have to weigh between various aspects for a suitable policy. There is also the Latin contract and business jargon, which is hard to understand even for the average bright person. An even if you manage to select what you want, there’s the matter of the bill, which, in most cases, can be incomprehensible.
Most legal and insurance policy documents are lengthy and confusing. It’s always good to consult with an insurance attorney if you have concerns about your insurance.
Stambaugh Law PC provides free consultation on insurance matters. We will help you know what your insurance premium entitles you to and what your accident coverage is.
What is an insurance premium?
Insurance is taken by people, businesses, and institutions to cover against harm from specified events in the future. It’s usually a contract specifying that in exchange for regular payments for a specified period from the policyholder, the insurance will compensate him/her for their loss.
The regular payments made by the policyholder to the insurance provider are called premiums. Basically, it is the sum the insurance provider charges you for protection.
Insurance contracts are legally binding and governed by the utmost good faith principle meaning that you must disclose all material facts concerning the item of insurance. Equally, the provider is required under law to act in good faith when denying cover, charging premiums, assessing, paying, or denying a claim.
Consequently, your insurance premiums entitle you to the following rights:
- Compensation you for the loss and claim expenses. This is referred to as indemnification. If you suffer a loss potentially covered by the policy you took, the insurance must reinstate you to the position you were financially before the disaster occurred.
- Reimbursement for the loss you paid for and other out of pocket costs in case of a reimbursement’ policy
- Your insurance provider has the legal right to defend and settle a claim on your behalf in case of a ‘pay on behalf’ policy.
- Your insurance provider has the right to pursue recoveries for you.
- The death benefit or a sum of money equal to the policy’s face value, in case of life insurance; this goes to your beneficiaries.
- Legal representation from an insurance attorney in case you suspect bad faith on the part of the insurance company
How do premiums work?
Premiums are based on some predetermined calculations and other factors. Specifically, the amount charged depends on the type of coverage, the extent of coverage, personal information, and location.
For comprehensive coverage, insurances charge more. Personal claims history, credit rating, car accident frequency, and competition affect the premium amount.
The insurance may decide to add other service fees too. However, the issuance fee and other extra charges shouldn’t be considered part of the premium; they should be entered separately in your premium account statement.
If you have concerns about the charges included on your premium, talk to an insurance attorney. The Local State Insurance Commissioner’s Office provides information on insurance community regulations.
Why you need an insurance attorney?
Cases of bad faith insurance are on the rise. Bad faith is when insurance uses tactics to deny cover or avoid meeting the obligations in the contract you signed.
Getting insurance cover is supposed to be the surest way to protect against future loss due to a specified event. Taking insurance should help you sleep better at night. Unfortunately, in some cases, it doesn’t work that way. Some insurance providers give policyholders a hard time when it comes to issuing cover or investigating and settling claims.
An insurance firm may act in bad faith if:
- They deny cover without an explanation.
- They deny a claim without investigating.
- Drag out claim payments without good reason
- Only look for reasons to deny a claim and ignore supporting evidence.
- Apply a standard that differs totally from the rest of the industry
- Misrepresenting contract details to avoid paying a claim
Insurance attorneys will help sort your insurance concern so you can rest easy. These are people with a specialization in insurance law. An insurance attorney will ensure your insurance policy and rights are protected. They will help you understand your insurance contract, provide legal representation, gather evidence supporting your claim, and negotiate on your behalf or sue for a maximum fair amount.
For further information on insurance law, call or visit Stambaugh Law for a free consultation about your insurance worries.