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Killing of Insured by Beneficiary

A beneficiary of an insured's life insurance policy who kills the insured may not be entitled to recover the policy proceeds. The denial of benefits may be based either on language included in the life insurance contract or on the basis of public policy.

The Distinction Between an Insurance Agent and an Insurance Broker

Insurance agents act on behalf of one or more insurance companies. That relationship between the insurance agent and the insurance company provides authority for the agent to act for and bind the insurance company. Insurance brokers, on the other hand, represent insurance purchasers rather than insurance companies even though insurance brokers may receive their commissions from insurance companies. Insurance brokers do not have authority under principal-agent or employer-employee theories to bind the insurance companies that provide the policies insuring companies or individuals.

Types of Adjusters

When an insured files a claim with his insurer to recover for a loss, the insurer may pay the amount requested without question, or it may begin the "adjustment" process. This is the process by which the claim is resolved. Various types of "adjusters" may assist in the adjustment process.

First-Party Insurance

An insured may submit a claim to his insurer to recover under two different categories of insurance. The categories are based on whom the insurer is required to pay. If the insurer is required to pay the insured for his loss, the insurance classification is "first-party" insurance. If the insurer is required to pay a third party on behalf of the insured due to a loss caused by the insured to the third party or the third party's property, the insurance classification is "third-party" insurance. This article addresses first-party insurance only.

False Claims by Insured

Various statutes prohibit the submission of false or fraudulent claims or evidence in connection with insurance claims. A person who commits such fraud may be subject either to civil liability to an insurer or to prosecution for a crime.