What are Pa laws on tort requirements for Insurance companies?
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After selecting limited tort on my auto insurance, a month or two later it was changed to full tort. I was told that by law they had to send a form out asking me again what my tort options were and if I did not send it back it would be changed to full tort. I did not send it back because I had already made my choice on the policy when I bought it. In fact I did not even read that part of the letter. Is this a state law and can they make the change without my permission?”
Asked June 5, 2017
1 Answer
In Pennsylvania, insurance companies that provide liability insurance to individuals or businesses are required to comply with certain tort laws. Tort law is a branch of law that deals with civil wrongs, including those that result in physical injury, property damage, or economic loss. These laws are designed to protect individuals and entities from harm caused by the negligent or intentional actions of others. One of the primary tort requirements for insurance companies in Pennsylvania is the duty to defend. This means that when a policyholder is sued for damages that fall under the terms of their liability insurance policy, the insurance company is required to defend them in court. The insurance company must provide legal representation and pay for all legal costs associated with the defense, including court fees, expert witness fees, and other expenses. Another important tort requirement for insurance companies in Pennsylvania is the duty to indemnify. This means that if a policyholder is found liable for damages covered by their liability insurance policy, the insurance company is required to pay for those damages up to the policy limits. The insurance company is also required to pay for any legal costs associated with the settlement or judgment. In addition to these duties, insurance companies in Pennsylvania are also required to act in good faith when handling claims. This means that they must promptly investigate claims, communicate with policyholders and claimants in a timely and respectful manner, and provide fair compensation for damages covered by the policy. If an insurance company fails to act in good faith, they may be subject to legal action by the affected parties. It's important to note that these requirements apply specifically to liability insurance policies in Pennsylvania. Other types of insurance policies, such as property insurance or health insurance, may have different requirements under Pennsylvania law. Additionally, the specifics of these requirements may vary depending on the language of the insurance policy and the circumstances of the claim.
Answered June 7, 2017 by bestrates