Search
 
Commentary

Bad faith legislation is not good policy

Contrary to popular belief, it’s the trial attorneys — not consumers — who benefit from bad faith legislation.

By Erin Collins | July 15, 2019 at 08:00 AM
The National Association of Mutual Insurance Companies (NAMIC) continues to battle bad faith bills nationwide. (ALM Media archives) The National Association of Mutual Insurance Companies (NAMIC) continues to battle bad faith bills nationwide. (ALM Media archives)

When the topic of bad faith legislation arises in the states, the proverbial hair on the back of the neck rises for insurers nationwide.

If a policyholder were to ask why, the answer is simple: Legislation like this does not benefit consumers, nor does it improve insurance regulation. Its solely for the benefit of trial lawyers. It creates a double lawsuit windfall that clogs the courts, keeping meritorious suits from being heard. Such legislation also countermands the authority of state insurance regulation, and instead interjects a litigation shakedown and lottery-style pursuit of jackpots that ultimately hurt policyholders through increased costs and premiums.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

 

Recommended Stories

Dog bite litigation, breed biases and Pennsylvania laws

Dog bite litigation, breed biases and Pennsylvania laws

Rebecca Glenn-Dinwoodie |

Pennsylvania law addresses these negative interactions through both civil and criminal statutes, as well as regulation of the insurance industry when it comes to specific restrictions.

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.