Insurance, Tort Reform
NEW YORK -- March 22, 2002 -- The American Insurance Association (AIA), a major insurance industry trade group, says lawmakers who enact "tort reform" should not expect insurance rates to drop, according to an AIA press release quoted by the Center for Justice & Democracy (CJ&D). "We would like to thank the insurance industry for finally admitting what is already obvious, that they have not cut, and have no plans to cut, insurance premiums for doctors, hospitals or other businesses as a consequence of 'tort reform'-- restrictions on consumers' rights to sue wrongdoers in court," said CJ&D Executive Director Joanne Doroshow in an article about insurance company costs. "...[tort reform] is an insidious movement that has had terrible consequences for many innocent people, while doing nothing to improve the affordability of liability insurance for businesses or professions."
Ms. Doroshow is the co-author of "Premium Deceit," an exhaustive look at the impact of "tort reform" on nationwide insurance costs. CJ&D is a national nonprofit public interest group concerned with our civil justice system.