What is the difference between insurance and entitlement?

Posted over 2 years ago. Applies to Las Vegas, NV, 2 helpful votes

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An entitlement is a guarantee of access to benefits based on established rights

An entitlement is a guarantee of access to benefits based on established rights or by legislation. A "right" is itself an entitlement associated with a moral or social principle, such that an "entitlement" is a provision made in accordance with legal framework of a society. Typically, entitlements are laws based on concepts of principle ("rights") which are themselves based in concepts of social equality or enfranchisement. In a casual sense, the term "entitlement" refers to a notion or belief that one (or oneself) is deserving of some particular reward or benefit[1]--if given without deeper legal or principled cause, the term is often given with pejorative connotation (e.g. a "sense of entitlement"). clinical psychology and psychiatry, an unrealistic, exaggerated, or rigidly held sense of entitlement may be considered a symptom of narcissistic personality disorder, seen in those who 'because of early frustrations...arrogate to themselves the right to demand lifelong reimbursement

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A "right" is itself an entitlement associated with a moral or social principle

Rights are legal, social, or ethical principles of freedom or entitlement; that is, rights are the fundamental normative rules about what is allowed of people or owed to people, according to some legal system, social convention, or ethical theory. Rights are of essential importance in such disciplines as law and ethics, especially theories of justice and deontology.The connection between rights and struggle cannot be overstated -- rights are not as much granted or endowed as they are fought for and claimed, and the essence of struggles past and ancient are encoded in the spirit of current concepts of rights and their modern formulations Rights are often considered fundamental to civilization, being regarded as established pillars of society and culture and the history of social conflicts can be found in the history of each right and its development. According to the Stanford Encyclopedia of Philosophy, "rights structure the form of governments, the content of laws

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Human rights or civil liberties

Human rights or civil liberties form a crucial part of a country's constitution and govern the rights of the individual against the state. Most jurisdictions, like the United States and France, have a codified constitution, with a bill of rights. A recent example is the Charter of Fundamental Rights of the European Union which was intended to be included in the Treaty establishing a Constitution for Europe, that failed to be ratified. Perhaps the most important example is the Universal Declaration of Human Rights under the UN Charter. These are intended to ensure basic political, social and economic standards that a nation state, or intergovernmental body is obliged to provide to its citizens but many do include its governments.

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Welfare benefits are a matter of statutory entitlement

Welfare benefits are a matter of statutory entitlement for persons qualified to receive them and procedural due process is applicable to their termination.Goldberg v. Kelly, 397 U.S. 254 (1970), is a case in which the United States Supreme Court ruled that the Due Process Clause of the Fourteenth Amendment to the United States Constitution requires an evidentiary hearing before a recipient of certain government benefits (welfare) can be deprived of such benefits. The individual losing benefits is not entitled to a trial, but is entitled to an oral hearing before an impartial decision-maker, the right to confront and cross-examine witnesses, and the right to a written opinion setting out the evidence relied upon and the legal basis for the decision

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Uninterrupted receipt of public assistance,

The interest of the eligible recipient in the uninterrupted receipt of public assistance, which provides him with essential food, clothing, housing, and medical care, coupled with the State's interest that his payments not be erroneously terminated, clearly outweighs the State's competing concern to prevent any increase in its fiscal and administrative burdenspre-termination evidentiary hearing is necessary to provide the welfare recipient with procedural due process. A pre-termination evidentiary hearing is necessary to provide the welfare recipient with procedural due process(a) Such hearing need not take the form of a judicial or quasi-judicial trial, but the recipient must be provided with timely and adequate notice detailing the reasons for termination, and an effective opportunity to defend by confronting adverse witnesses and by presenting his own arguments and evidence orally before the decision maker

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Decision maker must be impartial

Counsel need not be furnished at the pre-termination hearing, but the recipient must be allowed to retain an attorney if he so desires.The decision maker need not file a full opinion or make formal findings of fact or conclusions of law but should state the reasons for his determination and indicate the evidence he relied on.(d) The decision maker must be impartial, and although prior involvement in some aspects of a case will not necessarily bar a welfare official from acting as decision maker, he should not have participated in making the determination under review

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parameters for procedural due process when dealing with the deprivation of a government benefit or entitlement

The Goldberg decision set the parameters for procedural due process when dealing with the deprivation of a government benefit or entitlement. The Court held that a person has a property interest in certain government entitlements, which require notice and a hearing before a governmental entity (either state or federal) takes them away. Government-provided entitlements from the modern welfare state increased substantially in the United States during the 20th century. The Goldberg court decided that such entitlements (e.g., welfare payments, government pensions, professional licenses), are a form of "new property" that require pre-deprivation procedural protection, doing away with the traditional distinction between rights and privileges. It has been noted that the precarious financial status of those in poverty may preclude an extensive litigation process, despite the decision in Goldberg. The federal abstention doctrine presupposes the adequacy of state process

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Insurance is a form of risk management

Insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; the insured, or policyholder, is the person or entity buying the insurance policy. The amount to be charged for a certain amount of insurance coverage is called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate (indemnify) the insured in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated.

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An insured is thus said to be "indemnified" against the loss covered in the policy

An entity seeking to transfer risk (an individual, corporation, or association of any type, etc.) becomes the 'insured' party once risk is assumed by an 'insurer', the insuring party, by means of a contract, called an insurance policy. Generally, an insurance contract includes, at a minimum, the following elements: identification of participating parties (the insurer, the insured, the beneficiaries), the premium, the period of coverage, the particular loss event covered, the amount of coverage (i.e., the amount to be paid to the insured or beneficiary in the event of a loss), and exclusions (events not covered). An insured is thus said to be "indemnified" against the loss covered in the policy. When insured parties experience a loss for a specified peril, the coverage entitles the policyholder to make a claim against the insurer for the covered amount of loss as specified by the policy. The fee paid by the insured to the insurer for assuming the risk is called the premium.

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Insurance can have various effects on society

Insurance can have various effects on society through the way that it changes who bears the cost of losses and damage. On one hand it can increase fraud, on the other it can help societies and individuals prepare for catastrophes and mitigate the effects of catastrophes on both households and societies. Insurance can influence the probability of losses through moral hazard, insurance fraud, and preventive steps by the insurance company. Insurance scholars have typically used morale hazard to refer to the increased loss due to unintentional carelessness and moral hazard to refer to increased risk due to intentional carelessness or indifference Insurance can influence the probability of losses through moral hazard, insurance fraud, and preventive steps by the insurance company. Insurance scholars have typically used morale hazard to refer to the increased loss due to unintentional carelessness and moral hazard to refer to increased risk due to intentional carelessness

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Moral hazard

Moral hazard "At the same time, the government may grant an entitlment The private insurance company would have to determine whether a loss victuim had a lossno fault of their own, which is difficult to determine. Incorrect determinations could result in the payout of significant amounts for fraudulent claims or alternately failure to pay legitimate claims. This leads to the rationale that if government could solve either problem that government intervention would increase efficiency.

Additional Resources

Howard Roitman, Esq. 8921 W. Shara Ave Las Vegas, Nevada 89117 (702) 647-8550

Biography

Howard Roitman Ph. # (702) 647-8550

Website Howard Roitman

Howard Roitman @ Cornell Law

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