What is Insurance Law?
It is better to start with the definition of insurance, which is a contract in which the insurer receives premium from the insured with the promise to reimburse the insured should loss in the form of illness, death, property damage occurs. Insurance law is the law that guide to insurance policies, insurance claims, insurance rates and regulations. However, this article will look at insurance law as it relates to New York insurance law.
Insurance law also pertains to health insurance, life insurance, title insurance, automobile liability and homeowners insurance.
Categories of Insurance Law
Insurance law is of three categories:
- The insurance company of an insured person will hire lawyers that will represents him if what he is sued for is related to the insurance contract with the company.
- Insurance law helps the insured people to know if and when their insurance company should pay a claim.
- The insurance company may hire lawyers to help guide them on all applicable law and regulations.
New York Insurance Law
Insurance law varies by state and so what is applicable in one state may not be applicable in another. And since this article is based on New York insurance law, we will look at life insurance law, health insurance law, automobile insurance law and homeowners’ insurance law in New York.
New York Life Insurance Law
Residents in New York that wants to purchase a life insurance policy must have a foreknowledge of it as it relates to the states rules and regulations. In New York, a new policyholder is allowed a 10-day period during which he test the new life insurance policy before deciding whether to keep it or not. If he decides not to keep, a full refund is paid to him.
Also, the state allows grace period of 31 days to make up for late payments of a policy after which they can be cancelled by the insurer if no payment is made. Likewise, the insurer has only 30 days to pay a beneficiary whenever a life insurance claims is filed. If it involves death, the insurer must without delay. Delaying in payment will result in the beneficiary account accruing interests.
New York Health Insurance Law
There is no state law that requires employers to provide group health insurance for their employees. But if an employer chose to provide health insurance, New York insurance law requires certain criteria to be met. New York mandated benefits, continuation, conversion and provision are not applicable to health plans where the employer will be responsible for the payment for all benefits without the proceeds of any insurance policy.
New York Automobile Insurance Law
Vehicle owners in New York are expected to carry insurance coverage. Under the New York insurance law motorists are required to carry a minimum amount of liability insurance of $25,000 and $50,000 for bodily injury to a person and for bodily injury to all the people respectively, and $10,000 for any property damaged in an accident. Also a mandatory “no-fault” coverage of $50,000 is also required.
New York Homeowners’ Insurance Law
Homeowners insurance is an insurance policy purchased to cover sudden and large losses. if the policyholder defaults in payments the insurer can terminate the policy within the first 60 days with specific reason (s). After the 60 days, the policy cannot be terminated or non-renewed except for non-payment of premium, physical changes in the property after purchasing the policy and discovery of fraud or material misrepresentation.