If an insured does not think that his insurer handled his claim properly, he may have some recourse. Every contract contains an implied covenant of good faith and fair dealing that neither party will hinder the right of the other to receive the benefits of the contract.
There are numerous exclusions to the coverage provided to businesses in a comprehensive general liability or CGL policy. Exclusion E — Employers Liability — in the standard form CGL policy results in a lack of coverage under the CGL policy for liability arising from an injury to an employee.
When multiple insureds obtain an insurance policy, usually on jointly owned property, and one insured causes a loss through wrongdoing, the other insureds are considered “innocent co-insureds.”
Reinsurance is the process by which an insurance company shares the risk that it assumes when it issues an insurance policy. For example, an insurance company that issues a $1 million life insurance policy may reinsure or have other insurers assume $900,000 of the risk. The insurance company issuing the policy thus “cedes” most of the risk to one or more reinsurers.
When an insured files a claim with his insurer to recover for a loss, the insurer may pay the amount requested without question, or it may begin the “adjustment” process.
