Class Actions Threaten Regulators’ Authority

New York

Juries and judges in class action suits have been usurping state regulators’ authority, and the regulators don’t like it.

Case law made by judges and juries in multistate class action litigation is forcing insurers and other businesses to comply with insurance-related rules that were never approved or even considered by the insurance departments or legislatures in their states, regulators said during the National Association of Insurance Commissioners summer meeting.

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