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Life Insurance laws are not very complex in US. But still, you need expert help to fight your case if you are facing a conflicting situation with your insurance company. A life insurance policy is property, like a car, house, stocks and bonds can be legally sold in accordance with applicable laws. Under US Life Insurance Laws, there is a provision of Life Settlement. It refers to the sale of an existing life insurance policy for a lump sum of cash that is less than the policy’s face amount but more than the cash surrender value.
Till 1944, insurance was not subject to federal regulation. However later, in United States v. South-Eastern Underwriters Association, the Supreme Court held that Congress could regulate insurance transactions that were of interstate nature. The Sherman Act, the Clayton Act, and the Federal Trade Commission Act were applicable to the insurance business to the extent that it was not regulated by the state law. The McCarran-Ferguson Act gives states the power to regulate the insurance industry.
In case of group life insurance, primary goal is to allocate the risks of a loss from the individual to a great number of people. In the absence of insurance in a corporate set up, three possible individuals bear the burden of an economic loss; the individual suffering the loss; the individual causing the loss via negligence or unlawful conduct; or lastly, a particular party who has been allocated the burden by the legislature, such as employers under Workmen's Compensation statutes.
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