Insurance is now subject to a mix of laws, by-laws and court decisions. Government laws often control premium rates, prevent unfair practices by insurers, and protect policyholders from insurers` financial bankruptcy to protect them. At the federal level, the McCarran-Ferguson Act (Pub. L. No. 79-15, 59 Stat. 33 [1945] [codified in 15 U.S.C.A. §§ 1011–1015 (1988)]) allows states to retain regulatory control over insurance as long as their laws and regulations do not conflict with federal antitrust laws on pricing, tariff discrimination, and monopolies. If the risks – the chances of loss – can be shared among many members of a group, they must easily fall on each individual member of the group. This way, mishaps that could be overwhelming for you can be made bearable for everyone. Seen as a form of mutual aid, risk-sharing can be seen not only as good business practice, but also as enlightened social behavior rooted in accepted ethical principles. TRIA defines a terrorist act as any act certified by the U.S.
Secretary of the Treasury in accordance with the U.S. Secretary of State and the U.S. Attorney General. The act of terrorism must result in damage inside or outside the United States in the case of a U.S. aircraft or mission. A terrorist act must be committed by one or more persons acting on behalf of a foreign person or interest. An event must be an act of violence or an act dangerous to human life, property or infrastructure. Nuclear, biological and chemical attacks are not covered, and an event cannot be certified as an act of terrorism unless the total damage exceeds $5 million. Insurance companies can be punished for violations of laws or regulations.
Penalties for misconduct include fines and the loss or suspension of the company`s business license. In some states, if a court finds that the denial of coverage or an insurer`s refusal to defend an insured person in a dispute was inappropriate, the insurance company may be required to pay court costs, attorneys` fees, and a percentage greater than the insured`s recovery. The premium of a policy is its price, which is usually expressed as a monthly cost. The premium is determined by the insurer based on your risk profile or the risk profile of your business, which may include creditworthiness. INSURANCE, MARINE, CONTRACTS. Transport insurance is a contract in which one party undertakes, for an agreed premium, to compensate the other party against certain maritime hazards or risks to which its ship, cargo or cargo, or some of them, may be exposed during a given voyage or period of time. 3 Kent, Com. 203; Boulay-Paty, Dr Commercial, T.
10. 2. This contract is generally limited to the written form; The instrument is called an insurance policy. (Q. V.) 3. All persons, whether inhabitants, citizens or foreigners, may be insured, with the exception of foreign enemies. 4. Insurance may cover goods on board a particular or unnamed ship, such as goods on board ships or ships. The insured must be an insurable legal interest. 5. The contract requires the utmost good faith; If the insured makes false statements to the insurer in order to take out his insurance on better terms, he will cancel the contract, even if the loss results from a cause unrelated to the false declaration, or if the concealment was due to errors, negligence or accidents without fraudulent intent. Vide Kent, Com.
Lecture, 48; Swamp. Ins. c. 4; Pardessus, Dr Com.part 4, t. 5, n. 756, ff.; Boulay-Paty, Dr. Com. t. 10. Insurance policies are used to protect against the risk of large and small financial losses that may result from damage to the insured person or their property, or liability for damage or injury inflicted on a third party. After the attacks on the World Trade Center and the Pentagon, insurance premiums skyrocketed, especially for tenants of highly visible sites such as sports arenas and skyscrapers. The Terrorism Risk Insurance Act of 2002 (TRIA), Pub.
L. No. 107–297, 116 Stat. 2322, established a temporary federal program that provides for joint public and private compensation for insured losses resulting from acts of terrorism. The law, which is only valid for three years, stipulates that insurers must provide counter-terrorism coverage and provide policyholders with clear and visible disclosure of the premium for losses covered by the program. The TRIA limits insurance companies` exposure to future foreign terrorist acts, so the federal government must reimburse the insurance company for excessive losses up to a maximum of $100 billion per year. Under TRIA, the Treasury Department covers 90 percent of the damage caused by terrorism if an insurer`s exposure exceeds 7 percent of its commercial premiums in 2003, 10 percent of premiums in 2004, and 15 percent in 2005. But if your policy has a maximum replacement of $1 million, you won`t be up to the task. To protect yourself, experts recommend taking out replacement insurance with an inflation watchdog.
This adjusts the monetary policy ceiling to account for inflation. If this is not possible, you should check the limits of your policy from time to time to ensure that you are still adequately covered. Business interruption (or continuation) insurance policies are a type of insurance that applies specifically to businesses that need a physical location to do business, such as retail stores or manufacturing facilities. Business interruption insurance compensates a business for its loss of revenue in the event of events that disrupt the normal course of business. Suppose a visiting salesperson slips on a banana peel during a visit to your office and breaks his ankle. General liability covers your claim against you. Or let`s say your company is a window frame manufacturer, with hundreds of thousands of its window frames installed in people`s homes and businesses. In the event of a problem, general liability covers all claims related to the resulting damages. Inland navigation insurance is used for the transport of goods on land and on inland lakes. The company is a beneficiary of the Key Persons Directive.
If the key person dies and there is an obligation to pay, for example, $100,000 for his shares, at the same time the money is created with which this purchase can be made.