Insurers and trial lawyers in Washington State are ramping up their rival campaigns in the battle over a ballot initiative that would repeal a law making it easier to convict insurers of bad faith and impose triple damages.

Up for a decision by voters is legislation known as the Insurance Fair Conduct Act that was approved by the state legislature and signed into law earlier this year. Opponents of the legislation, however, are seeking to overturn it through a ballot initiative known as R-67.

The group--known as Reject R-67, or Consumers Against Higher Insurance Rates--has begun an ad campaign aimed at convincing voters that the law will serve primarily as a boon for trial lawyers. In the ad, members of a fictional law firm discuss how the law would allow them to file more suits and obtain settlements by threatening to seek triple damages.

"This ad tells voters that Referendum 67 is trial-lawyer driven all the way," said Dana Childers, a spokesperson for Reject R-67. "Trial lawyers wrote the law, and trial lawyers will benefit from the law."

According to data filed with the state Public Disclosure commission, Reject R-67 has received over $5.8 million in contributions, mainly from insurance companies. Two companies, State Farm Mutual Automobile Insurance Company and Farmers Group Inc., have each donated over $1 million to the group.

Supporters of the law, through the group Approve-67, have also been active. According to the PDC, the group has received over $473,000 in donations, with over $100,000 of that coming from the Washington State Trial Lawyers Association.

Although it has a smaller war chest, Approve-67 has touted endorsements it has received from a number of groups, including unions, seniors groups and consumer advocates.

"Referendum 67 holds the insurance industry accountable for the commitments they make to their policyholders," said Sue Evans, a spokesperson for the Approve-67 campaign. "That's why all these groups, which represent hundreds of thousands of everyday Washingtonians, are supporting it."

This article originally appeared in The National Underwriter P&C. For the complete article, please click here.

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Insurer Bad Faith Ballot Question Heats Up Campaign

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