In order to understand insurance law, it is useful to understand insurance first. Insurance is a contract in which one party (the “insured”) pays money (called a premium) and the other party promises to reimburse the first for certain types of losses (illness, property damage, or death) if they occur.
Insurance law falls into three major categories. First, the insurance company will hire lawyers to represent the insured in case she is sued for something related to her insurance contract. These are known as “insurance defense attorneys.” For example, an automobile insurance company will hire an attorney to represent an insured driver when she gets sued for causing another driver’s injuries. The second category of insurance law helps insured people determine when an insurance company must pay a claim. Third, insurance companies typically hire attorneys to make sure the company complies with all applicable laws and regulations.