Examples Of First Party Policies

Weatherford insurance lawyers need to recognize “first party” policies when they see them.  Here are some examples:

  1.  The standard Texas Auto Policy covers accidental loss or damage to the covered auto.  If an insured is involved in a single car accident resulting in property damage to the insured vehicle, the insured possessing this type of coverage may submit a claim directly to their insurer and receive compensation for the damage to their vehicle in accordance with the terms of the Texas Auto Policy.
  2.  Health insurance refers to coverage for medical and hospital expenses and may be issued on an individual or group basis.  An insured who requires health care due to an illness or injury may submit a claim directly to their own insurer for the reasonable and necessary costs of the health care received.  If the insured has paid for their health care, the insurer will reimburse the insured.  It is also common practice for the health care provider to take an assignment of the insured’s interest in insurance benefits enabling the insurer to pay the care provider directly.
  3.  Life insurance includes insurance on the life of the insured as well as annuities.  Following the insured’s death, the life insurer pays death benefits in accordance with the policy to the designated beneficiary or beneficiaries.
  4.  Originally, “marine” insurance referred to personal property in transit.  Today, the term is sometimes used to refer to personal property insurance that is not restricted to any particular location.  Thus, jewelry is frequently insured by a policy of “inland marine” insurance.  Insurance for ocean-going vessels is referred to as “ocean marine insurance” and is one form of insurance within the broader term “marine insurance.”
  5.  The insurance industry uses the rem “disability insurance” to refer to insurance against loss of income to an insured by reason of disability caused by accident or illness.  Disability insurance may be written on a group or individual basis.  Disability policies may be non-cancellable or guaranteed renewable.  Disability benefits under some policies may be integrated or reduced by social security or unemployment benefits.
  6.  Title insurance guarantees title to real or personal property (or any interest therein or encumbrance thereon)  against loss resulting from defective title or adverse claims.  Typically, title insurance protects purchasers and lienholders against errors and incorrect searches by title searchers relating to the title to real or personal property.