Chapter 1: Introduction to U.S. Law

Question 1

Classification of U.S. Law

Answer 1

• Classification as either criminal or civil law
• Classification by subject matter
  
  • Contracts, torts, agency, property law, etc.
• Classification as either substantive or procedural law

Question 2

The U.S. Legal System

Answer 2

• Civil-law system

- Common-law system

Question 3

Sources of U.S. Law

Answer 3

• A constitution
• The legislative branch
• The judicial branch
• The executive branch
• Administrative agencies

Question 4

Provisions of the U.S. Constitution Relevant to Insurance

Answer 4

• Delegation of powers to Congress
• Commerce Clause
• Due Process Clause (5th/14th Amendments)
• Equal Protection Clause (14th Amendment)

Question 5

Administrative Agencies

Answer 5

The legislature may delegate rule-making power to an administrative agency as long as:

• The legislation carefully defines the scope of delegated power
• The agency exercise its rule-making power within the defined scope
• The rules are subject to judicial review

Question 6

Civil Trial Procedures: Pretrial

Answer 6

• Complaint (plaintiff)
• Summons (court)
• Answer (defendant)
• Reply (plaintiff)
• Motions
  
  • To Dismiss (defendant)
  • For Judgement (defendant)
• Pretrial Conference (both parties w/judge)
• Discovery (both parties)

Question 7

Alternative Dispute Resolution

Answer 7

• Arbitration
• Mediation
• Negotiation

Question 8

Administrative Agency Procedure

Answer 8

The legal procedures entail these matters:

• Agencies’ rule-making function
• Agencies’ adjudication function
• Agencies’ investigative powers
• Judicial review

Question 9

Agencies’ Rule-Making Function

Answer 9

The Model State Administrative Procedure Act (MSAPA) requires agencies to adhere to three steps:

1. ) Publish a notice of intent for public comment
2. ) Provide opportunity for public comment
3. ) Publish the final regulation

Question 10

Agencies’ Adjudicatory Function

Answer 10

Appropriate notice includes:

• Statement of the hearing time, place, and nature
• Statement of the hearing’s legal authority and jurisdiction
• Reference to the particular statue or rule involved
• A short, clear statement of the matters at issue

Question 11

Judicial Review

Answer 11

Judicial review of a case can occur only after two requirements have been met:

• The agency has issued a final order
• The doctrine of exhaustion of administrative remedies has been satisfied

Question 12

Judicial Review

Answer 12

A court can set aside agency action on these grounds:

• The action was arbitrary and capricious, an abuse of discretion, or otherwise unlawful
• The action was unconstitutional
• The action violated statutory authority
• The action violated agency procedural rules or was the result of illegal procedures
• The action is unsupportable by substantial evidence in the record