Medigap Plans in Texas

Medigap Plans in Texas

     Keeping this in mind, let’s look at the insurance contract. When you Medigap Plans in Texas, you promise to pay the insurance company a specific amount of money within a specific period of time. In return, your insurance company agrees to Medigap Plans in Texas benefits upon the occurrence of a specified event or events. Benefits are the payments by the insurance policy. In life insurance, the “event” is the death of the insured. In an auto insurance policy, the event might be an auto accident in which the insured is injured. In health insurance, it is receiving medical care covered by the policy. As long as you Compare Travel Insurance, court will enforce the insurance company’s obligation to pay you benefits.

General Principles of Insurance Contracts

Here are some general principles you should know about insurance contracts:

There must be and insurable interest in order for the contract to be legal. An insurable interest is usually defined as an exposure to direct financial loss. Thus, if Uncle Pete rents and apartment, he cannot Medigap Plans in Texas on the apartment complex itself because he has no personal financial interest to protect in it. He can, however, insure the contents of his apartment through renter’s insurance.

Insurance contracts are almost always contracts of adhesion. A contract of adhesion is where one party controls the writing of its terms, thereby making the contract a “take it or leave it” proposition. The bad news about this is that the terms are written to be as favorable to the insurance company as is legally possible. The good news is that any vague terms or ambiguities will be construed by the courts against the insurance company that wrote the policy.

Both parties owe the other the utmost good faith in insurance contracts. This means that both parties must Medigap Plans in Texaswith each other in complete honesty and candor and must not act out of malice or ill toward the other.

     If the insurance company acts with ill will or dishonesty, some states (but not nearly enough) allow injured insured’s to sue for damages above and beyond the losses incurred that are covered by the policy. These are called bad-faith cases; they are discussed in detail in Chapter 42.