Vanderbilt Law Review


Paul H. Sanders

First Page



Our public arrangements in this country for compensating unemployment (including the aggregate of federal and state legislation to that end) are quite properly referred to as an "insurance" program.' Study of the elements of coverage in an insurance policy will be found instructive, therefore, in the matter of eligibility and disqualification for unemployment benefits. A contract of insurance is designed to transfer certain defined risks from the insured to the insurer. The risks selected for this process in a particular policy will be described or stated affirmatively in its provisions. Certain exclusions from the risk may be specified for even greater precision in delineating the boundaries of the insured event--thus the process of inclusion and exclusion establishes the affirmative conditions of the insurer's liability and defines the insured event or, more precisely, the event insured against. Risks must be selected and defined to provide the subject matter for the operation of the agreement between the parties. In addition, the insurer will probably insert provisions designed to control or minimize the risk assumed.