Insurance generally refers to a legally enforceable contract—known as an insurance policy—in which an insurance company (the insurer) agrees to (1) defend the person or entity who purchased the policy (the insured) against future claims or lawsuits; and (2) pay for losses (usually financial) that are covered under the written terms of the insurance policy.

These two primary legal obligations of an insurer under a liability insurance policy are known as the duty to defend and the duty to indemnify.

Insurance may be purchased to cover a wide range of future claims or losses—ranging from health insurance to pay future medical expenses, to commercial general liability (CGL) to cover future claims and losses incurred by a business.

In Oregon, insurance is regulated by state statutes and administrative rules, which establish the legal framework for the operation of insurance companies and the enforcement of insurance policies. The Oregon Division of Financial Regulation oversees the insurance industry, ensuring compliance with laws that protect consumers and maintain market stability. The duty to defend and the duty to indemnify are fundamental obligations of insurers under liability insurance policies in Oregon. The duty to defend requires the insurer to provide legal defense for the insured against claims that are potentially covered by the policy, while the duty to indemnify involves the insurer's obligation to pay for any covered losses or damages. Insurance policies in Oregon can cover various risks, including health, life, property, and liability. Each type of insurance is subject to specific regulations that dictate coverage requirements, policy terms, and the claims process. It is important for policyholders to understand the coverage provided by their policies and for insurers to adhere to the terms of the contract and applicable laws. In cases of disputes, policyholders may seek resolution through the Oregon insurance division's consumer advocacy services or may need to consult with an attorney for legal advice or representation.