Lloyd's of London

While references are made to insurance policies from Lloyd's of London, Lloyd's is not an insurer. Rather, Lloyd's is a market for various syndicates or groups that provide insurance against various risks.

INTERPLAY WITH CONSUMER PROTECTION STATUTES

The Federal Trade Commission Act, as amended, was one of the first laws to protect consumers from unfair and deceptive acts or practices in commerce. Additionally, most states have now adopted either the Uniform Deceptive Trade Practices Act1 or enacted similar statutes that protect consumers and other businesses from unfair and deceptive acts or practices in commerce. These consumer-oriented statutes are typically limited to the sale of goods or services and transactions for personal, family, household, and similar purposes. While there is a variance in these statutes as to what constitutes an unfair and deceptive trade act or practice, the following activities are typically prohibited under all consumer-oriented deceptive trade practice statutes: (1) passing off goods or services as those of another; (2) causing confusion or misunderstanding as to the source or approval of goods or services; (3) falsely representing that goods or services have sponsorship, approval, or benefits that they do not have; (4) disparaging the goods, services or business of another by false or misleading representations; and (5) engaging in any other conduct that creates a likelihood of confusion or of misunderstanding. Federal and state consumer-oriented laws usually allow both business competitors and consumers to sue a business or person that has engaged in a deceptive trade practice. In many states, aggrieved consumers may obtain treble damages and collect attorney's fees.

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.

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.

Unconscionability

An insurance policy, like every other type of contract, imposes upon each party an implied duty of good faith and fair dealing in its performance and its enforcement. This duty requires the insurer and the insured to perform so as not to impair or destroy the right of the other to receive the benefit of the agreement. The duty also incorporates the concept of avoiding "unconscionability" in executing the policy.