| Tie-in Arrangements |
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| A "tie-in arrangement," also known as "insurance packing," in the insurance industry consists of a lender's extension of credit to a borrower on the condition that the borrower purchase certain insurance, usually from an insurer with close ties to the lender. The premium amounts for the insurance are usually added to the amount of the loan without the borrower's request or knowledge, and he may not find out about the tie-in arrangement until the lender presents the pre-prepared loan documents at the closing of the loan.More... |
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| Employers Entitled to Life Insurance Proceeds |
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| A beneficiary of a life insurance policy must have an insurable interest in the life of the insured in order to collect the policy proceeds upon the insured's death. An insurable interest is usually found where there is a blood or marriage relationship between the beneficiary and the insured or where the beneficiary has a direct or contractual relationship with the insured.More... |
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| Indemnity vs. Liability Policies |
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| Indemnity policiesMore... |
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| Insurable Interest |
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| A beneficiary may procure insurance upon the life of an insured only if he has an insurable interest in that insured's life. The determination of whether the beneficiary has an insurable interest depends upon the nature of the relationship between the beneficiary and the insured. If the beneficiary has a valid, insurable interest, he may recover the insurance proceeds upon the insured's death. If he does not, however, the insurer may plead a lack of insurable interest and avoid liability on the policy.More... |
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| Insured Vehicles for Uninsured/Undersinsured Coverage |
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| If an insured is involved in an accident with an uninsured or underinsured motorist, he may seek to recover under his insurance policy providing for uninsured/underinsured motorist (UM/UIM) coverage. In order to do so, he must be a covered person, and the vehicle involved in the accident must be a covered vehicle. Covered persons include named insureds, designated insureds, resident relatives of named insureds (Class I insureds); occupancy insureds (Class II insureds); and derivative insureds entitled to recover damages because of the bodily injury suffered by Class I or II insureds (Class III insureds). This article addresses the aspect of covered vehicles.More... |
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