Insurance Law Basics

In United States of America, there are basically life insurance and general insurance. General Insurance covers all type of insurance other than life like, car, property, health, liability etc. First we will cover general insurance:

General Insurance

Car Insurance has basically has three components namely, material damage, personal injury and group personal injury per accident. The amount of coverage for each component depends on the ratio stipulated by the states. One has to take the minimum insurance as stated by the state.

Business Insurance also has separate coverage allowances for property damage, liability and people. Property damage covers business property against loss due to fire, vandalism, earthquake etc. You can select the cause based on your risk assessment. Liability coverage is for protection against loss arising out of legal suit filed against you. There is also professional liability coverage for protection against loss due to non performance of contract. For business there is also health insurance plans for the employees and state makes it mandatory for business houses which falls under the state definition required.

Health Insurance is a vital insurance policy in US because of high medical costs. Health insurance policies are available readily but the premium depends on your current health and lifestyle. Health insurance covers all your medical expenses as per the contract agreed upon.

Home Insurance is also a popular insurance policy available for protection against loss or damage to house due to man-made or natural disaster.

The premium for any general insurance depends on the risk assessment done by the insurance company. The insurance companies also offer various insurance clubbed together.

Life Insurance

Life insurance laws in US are quite similar to other countries and depend on ones need and personal choice. The premium depends on the risk assessment done by the insurance company based on your health check up and life style.


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