Friday, October 7, 2011

Policies are Contracts

Contracts need to be very detailed and specific... that's probably why there are so many lawyers.

I'm on a steady diet of reading commercial contracts and eating M&M's and I've realized that there are lots of things that are unclear in insurance policies. It seems that there are some companies that are less clear than others. Whether it's by design or fault, the ambiguity can lead to lots of heart-ache when there is a claim. The insurance company will specify what they will or will not pay for. If it's unclear, the matter should be cleared up before there's an emergency... at least to be correct in our understanding.

Insurance companies do make a profit. They probably don't do it by paying claims...

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