Insurance Industry Doesn't Want to Play Fair

By Gary Zuckett
February 14, 2003

The assault on citizen's rights in our civil justice system continues. After getting their way on medical malpractice, insurance lobbyists have now set their sights on liability claims across the board. Two new bills HB2872 and HB2809 are now in House Judicary.

HB2872 would abolish "joint liability." Joint liability is the legal term for holding all parties found at fault equally responsible. For instance, if an overweight coal truck ran over your sedan and injured your family, a jury might find both the driver and the trucking company at fault. If the driver files for bankruptcy or his insurance has expired and he could not pay damages, you could reclaim all damages awarded from the trucking company.

However, if joint liability is eliminated, then the jury is required to assess the relative fault of each party. Say they rule the trucking company only 20% at fault. In the above scenario where the driver cannot pay, you are left with only 20% of your damages covered. This is not fair to victims of negligence and unscrupulous business of all kinds. It favors wealthy insurance companies who can weasel out of paying full damages to cover those they insure.

HB2809 is in the section of WV Code entitled "Unfair Trade Practices." The note section at the end of this bill reads: "The purpose of this bill is to bar third party claims against insurers for violation of the Unfair Trade Practices Act." The body of the bill adds this language to existing law, "…no claim or action may be filed against an insurer, its employees or agents alleging that the insurer, its employees or agents has violated any provisions of this article…"

In other words insurance companies want to abolish the requirement that they treat their customers (and customer's counsel) fairly. They want to be able to delay, stall, and lowball settlements on insurance claims with out fear of retaliation. If this is passed there will be little to no incentive for insurers to settle disputed claims. If you think is hard to get insurers to pay up now, don't let this bill pass the legislature.

The Medical Malpractice "tort reform" bill is now in a Joint Conference Committee to work out differences in Senate and house versions. The message for the legislature is "Keep the Senate amendments in HB2122"

The message is simple for the two new House bills. Tell members of House Judiciary not to give in to greedy insurance companies and support your rights by voting NO on HB 2872 & 2809.