| Bad Faith Defenses of Insurer |
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| Every contract, including an insurance policy, contains an implied covenant that both parties will exercise good faith and fair dealing so that the other party's right to the benefits of the agreement is not hindered. A breach of such duty may result in bad faith litigation.More... |
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| The Standard Aviation Insurance Policy |
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| Aviation insurance generally concerns insurance for aviation liability, aviation hulls or aircraft, airport owners and operators, and aviation manufacturers. These categories of risk may be covered in one or more policies. Such policies contain types of provisions found in most insurance contracts, although the specific provisions vary from standard provisions to take into account unique aspects of the aviation industry.More... |
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| Purchasing Groups |
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| The Liability Risk Retention Act of 1986 provides for the formation of purchasing groups to buy insurance. Such groups must be made up of members or companies with similar risk exposure due to their involvement in similar businesses. The groups must meet the regulatory requirements of the states in which they are organized, but, due to preemption by the Act, some regulatory requirements of other states in which the groups do business do not have to be met.More... |
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| First-Party Insurance |
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| An insured may submit a claim to his insurer to recover under two different categories of insurance. The categories are based on whom the insurer is required to pay. If the insurer is required to pay the insured for his loss, the insurance classification is "first-party" insurance. If the insurer is required to pay a third party on behalf of the insured due to a loss caused by the insured to the third party or the third party's property, the insurance classification is "third-party" insurance. This article addresses first-party insurance only.More... |
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| Payees of Claims |
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| When a claim is submitted to an insurer under an insurance policy and the insurer determines that it will make payment for the loss incurred, the insurer must then make payment to the proper party. To determine the proper payee of insurance proceeds, an insurer must focus on the rights under the policy rather than the rights of the parties to the insured property. For example, the fact that a party owns the insured property does not mean that he is entitled to the proceeds when a loss occurs. In general, any party with a recognized interest in the proceeds may be entitled to payment. If a party entitled to payment is not paid, the insurer may be subject to multiple liability for the same loss.More... |
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