Insurance Law Basics

Need sound legal advice about insurance? The Insurance Law Basics section of FreeAdvice will get you started: use the free articles and answers to frequently asked questions here to educate yourself about insurance claims, insurance lawsuits, legal limitations on insurance companies, consumer rights, and more.

Whether you buy auto insurance, health insurance, life insurance, homeowners insurance, or any of the other types of insurance on the market today, insurance is a product dominated by powerful companies that sometimes seem to intentionally make it difficult for you to understand what you’re purchasing. In fact, the insurance industry is one of the most powerful industries in the United States; while in contrast, consumers seeking peace of mind through insurance are often extremely vulnerable. In recognition of the power disparity between insurance companies and policyholders, every state in the country has a system in place to regulate their insurance industry and prevent companies from taking advantage of consumers. 

There are a variety of different laws governing the purchase and sale of insurance, as well as laws governing the conduct of insurance companies while doing business. Insurance companies are under a duty to act in good faith and to deal fairly with consumers, and in some cases, insurance companies may be sued for violating the terms of a policy or for acting in bad faith. To find out more about the field of insurance law and consumer rights relating to insurance, visit the articles and answers to frequently asked questions using the links on this page.