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Some basic terms to know about insurance law

Today, we're going to talk about some very basic terms that are involved in insurance and insurance law. These terms are common and are important to know, especially for people who are dealing with an insurance company that seemingly isn't holding up its end of the bargain or is outright involved in bad faith insurance tactics.

The policy is the actual contract between you and your insurance company which outlines the details of what is covered and what isn't. The benefit in the policy is the payment or service the insurance company provides to the individual or group covered by the policy. That individual or group that is covered by the policy is called the insured.

The insured pays the insurance company a premium to maintain the policy, and they can make a claim when a loss occurs under the guise of the policy. The coverage provided by the policy is the types of losses that insurance company will reimburse you for should they occur.

No matter what type of insurance you are dealing with, these basic terms will be important. If your insurance provider decides to deny you coverage even though your policy seems to indicate that you are owed a benefit, then you should talk with an attorney as soon as possible. Insurance companies will always try to mitigate their liability or their losses on a policy, and sometimes this can lead to truly despicable actions on the part of the company.

Source: FindLaw, "What is Insurance Law?," Accessed Aug. 1, 2016

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