Tuesday, April 29, 2008

Trial Lawyers win, Insurance companies and their customers lose

It is startling how many ways the Democrats can find to add more regulations to job providers in this state. Here is yet another example:

HB4998 would allow any insured to file a lawsuit against insurers if they do not act in "good faith" for compensatory, consequential, economic, non-economic and exemplary damages. That's right, if you feel that your insurance company acted in bad faith, you may sue them.

We have an agency of government called the Office of Financial and Insurance Regulation. It is their job to make sure insurance companies are treating customers fairly. They have the power to assess 12% interest penalties on overdue claims payments, impose penalties of up to $25,000 for violators and suspend or revoke an insurance company's license to operate. Further, reasonable attorney fees are already allowed in claims involving unreasonably delayed or denied benefit payments.

But state regulation is not enough for this administration. Now we need to open the Pandora's box of unbridled litigation by the trial lawyers. All the claimant needs to do is make the accusation that the insurance company "did not act in good faith".

1-800-CALL-SAM will have to open a new division. Well, at least we are creating new jobs in the legal profession.

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