The California insurance industry is up in arms over a bill passed by the legislature late yesterday that would give the state 75 percent off the top of punitive damage awards.
Sam Sorich, president of the Association of California Insurance Companies, reacted today by saying that the industry plans to ask Gov. Arnold Schwarzenegger to veto the bill when it reaches his desk. Under state law, the governor has until Sept. 30 to act on the bill.
From a legal perspective, the industry's concern is that the bill would encourage exorbitant punitive damage awards.
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