Insurance

There is neither a universally accepted definition or concept of "insurance" nor an exclusive concept or definition that can be pervasively applied in insurance law. But at its core, insurance law involves the sharing of risk. Insurance law encompasses questions of coverage, claims litigation, and compliance with governmental regulation. Insurance companies have always been regulated primarily by the states. In 1944, the Supreme Court determined that the federal government-pursuant to the Commerce Clause-could regulate insurance companies, to the extent that their business was interstate. In 1945, Congress passed the McCarran-Ferguson Act, 15 U.S.C.S. § 1011 et seq., which established that the business of insurance would continue to be regulated by the states. Under the McCarran-Ferguson Act, a federal law not specifically regulating the business of insurance cannot preempt a state law enacted for that purpose. The Sherman Act, the Clayton Act, and the Federal Trade Commission Act apply to the insurance business where state regulations are silent. Each state has a department of insurance (known by a number of different names) which promulgates the regulations for insurance law and insurance companies doing business in that state. These regulations govern nearly every aspect of the insurance business, from rate setting and claims procedures to claims adjustment and advertising.

Insurance law also covers the many types of insurance contracts exist, including life, health, accident, disability, workers' compensation, liability, malpractice, motor vehicle, and property and casualty. Within each category of insurance, there are primary and excess policies and reinsurance agreements. In addition to regulatory compliance actions, insurers may face first-party and third-party lawsuits regarding bad faith, coverage disputes, deceptive trade practices, and negligence.