W. Va. Legislation Would Mandate Insurance Disclosure
By Ry Rivard, Charleston Daily Mail, W.Va. | |
McClatchy-Tribune Information Services |
The bill's critics, including the state
The bill's supporters, including the plaintiff's bar, say the tweak is minor, mirrors laws that exist in other states and may actually decrease the number of lawsuits.
The proposal requires insurance companies to disclose insurance policy information to people with personal injury or wrongful death claims or to their attorneys.
Someone with a claim might include a person hurt in a car accident, who slipped and fell in a store or who was a victim of malpractice. The insurance company on the hook in those cases might cover the other driver, the store or the doctor.
If the bill passes, insurance companies would have to reveal how large the policy was, provide a copy of the policy itself and also state what defense the company might mount against the claim.
The bill passed the House and is pending in the
While insurance companies already have to disclose the size of policies after their customers are sued, it's not clear how often they disclose that information before they are taken to court.
Supporters of the bill, like
The bill's critics, like
Romano said it helps to know the size of a policy before a suit is filed so he can advise his clients. If a client is facing
What's clear is the bill would expand how much information insurance companies have to provide.
"The bill does not just require the disclosure of policy limits," she said.
At least a dozen states have some kind of disclosure requirement, according to a chart comparing state laws compiled by the West Virginia Offices of the Insurance Commissioner.
About half of them limit the scope of the law to automobile insurance, according to the chart. The bill here would apply to all insurance policies.
Five of the 12 states require some proof that an injury has occurred, but
"It does not require evidence of an actual injury or medical bills," Bentz said.
Romano said in "99 percent of the cases" there would be a police report or some indication there was a crash. He said attorneys could be reprimanded for making up an injury.
"If we would do something that would inappropriate or false, we'd be disbarred or admonished," he said.
Only
Bentz said
"West Virginia doesn't want to be like
Romano said previewing a defense could benefit insurance companies if the insurance company is claiming the policy is void.
The state Chamber said the bill is "highly problematic" for West Virginia employers and could kill the state's chances of attracting the large petrochemical facility known as an ethane cracker that the Tomblin administration hopes will revive the state's manufacturing industry.
In turn, House Judiciary Chairman
Senate Judiciary Chairman
Palumbo, who is a lawyer and does some work for insurance clients, said he thinks the goal of the bill is "not unreasonable" and the business community's rhetoric may be going too far.
"I'm in the camp where I think the opposition to it is over-reacting," Palumbo said.
He said if the goal is only to make insurance companies disclose policy limits, the bill doesn't concern him much. But he does expect his committee might amend the bill to remove provisions that are "over broad," including the language that requires insurance companies to reveal their possible defense to a claim.
Miley said he thinks the House would be OK with those changes.
"I don't think that would be problematic over here," he said Wednesday.
Bentz said she is working to educate members about the bill's effects and the industry's hope is the bill is stalled or significantly changed.
McCormick said he does not want the bill at all.
"We got to kill this thing," he said.
A few of the bill's House sponsors, including Miley and Delegate
Another sponsor is Delegate
Walters said the bill would save money by making insurance companies disclose information instead of making people sue to get the information.
"It truly will save you money; it costs a couple grand to file a lawsuit," he said.
Walters is in the insurance business and supports the bill, but he helps negotiate settlements, a tool used primarily by plaintiff's attorneys. He said his business would not stand to benefit from the bill because no bill can change the number of injuries that are sustained in any given year.
"The argument I'm benefiting from this is pretty damn weak because I'm not driving my car into somebody else, and I'm not causing somebody to get hurt and I didn't cause a mine to blow up," Walters said.
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