Also known as: insurance premiums · premium
Written by attorneys · grounded in primary & secondary sources — see below
A sum paid by an insured to an insurer in return for the insurer's promise to provide coverage against specified losses or liabilities.
Iain Irons borrowed from Ironwood Capital to buy a home and the mortgage required him to maintain casualty insurance. After five years Iain paid the remaining principal plus all accrued interest and the final insurance premium installment directly to the lender. Ironwood Capital executed and recorded a satisfaction of mortgage releasing the lien on the property.
Irene Ingalls purchased an auto policy from Allstate while living in Minnesota and later moved to Wisconsin. When a claim arose Allstate argued Minnesota law governed the premium payment obligations. The Supreme Court examined whether Minnesota had sufficient contacts to apply its rules to the premium dispute.
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Unitrin's board adopted a poison pill that would dilute any acquirer. American General offered a cash price that included an amount reflecting the value of Unitrin's insurance operations. The Delaware court evaluated whether the pill was a proportionate response when the offer included payment of the next insurance premium installment on the subsidiary policies.
Imani Idowu operated a small business and objected to the requirement that she obtain health insurance or pay a penalty. The statute treated the required payment as a premium for minimum essential coverage. The Court upheld the provision as a valid exercise of the taxing power rather than a direct command to buy insurance.
Home Building & Loan held a mortgage on Igor Ito's farm and the loan documents required Ito to keep casualty insurance in force. During the Depression the state imposed a moratorium preventing foreclosure even though Ito had missed several premium payments. The Court examined whether the moratorium unconstitutionally impaired the lender's contractual rights.
Virginia Bankshares directors recommended a merger that would cash out minority shareholders. The proxy statement failed to disclose that the controlling shareholder had received a separate payment covering the upcoming insurance premium on the subsidiary's policies. Minority shareholders sued alleging the omission rendered the solicitation materially misleading.
The partner becomes a creditor of the partnership for the amount advanced. In winding up the partnership must apply its assets to pay all creditor claims including the partner's reimbursement claim before any surplus is distributed to partners as owners.
The partnership is liable when the general partner receives the funds while acting with actual or apparent authority in the ordinary course of the partnership's insurance brokerage business and then diverts them. The client may sue the partnership directly for the loss.
Yes when the corporation is thinly capitalized and the owner diverts most premium dollars to an affiliated entity for personal benefit. That combination shows the corporation was operated as an alter ego used to externalize risk and supports holding the owner personally liable.
…Benefit Guaranty Corporation (PBGC) which requires an increase in premiums must be approved by concurrent resolution;) (revised premium schedules for voluntary supplemental coverage proposed by PBGC may be disapproved by concurrent resolution). "37. Farm Credit Act Amendments of 1980, Pub. L. No. 96-592, § 508, 94 Stat.…