Insurance Law

Class Info

Law School: Liberty University School of Law

Course ID: LAW 805

Term: Spring 2020

Instructor: Prof. Light

Books Used
  • Insurance Law and Regulation: Cases and Materials by Kenneth S. Abraham & Daniel Schwarcz

Insurance contracts have five sections: declarations, definitions, coverage, ???, and exclusions.

Binder

A binder is a temporary contract which obligates an insurance company to provide coverage if there is a loss before the actual agreed-upon policy is issued.

In accordance with general contract law, any ambiguities in normal insurance contracts will be construed against the insurance company as the influential drafter.

Extrinsic evidence is typically allowed to clarify any ambiguities.

A minority of states follow a policy of "honoring the reasonable expectation fo the insured," even if there was no actual ambiguity.

Estoppel

In most states, insurance companies cannot be estopped make insurance companies cover a loss caused by a misrepresentation of the insurance company.

Public policy may require insurance companies to deny covering punitive damages and require covering things to prevent policyholders from making gruesome choices.

An insurance contract must have an insurance interest.

Principle of Indemnity

Insurance contracts shall not confer a greater benefit on an insured than the loss sustained.

Exclusion