Nebraska Auto Liability Bill Clears Initial Vote

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January 26, 2010 Tuesday 04:39 PM EST

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Nebraska Auto Liability Bill Clears Initial Vote

Sean P Carr

LINCOLN, Neb.

A Nebraska bill to repeal a state law barring family members of at-fault drivers from filing liability insurance claims cleared an initial legislative hurdle and is headed for another vote. <P>

Sponsored by state Sen. Norman Wallman, D-Cortland, L.B. 216 would end civil liability provisions relating to motor vehicle and aircraft "guest statutes." According to a summary prepared by Wallman, before 1981 a passenger injured through the negligence of the driver could not recover damages for injuries unless the driver was found to be guilty of gross negligence. A law passed that year amended the guest statute so that it applied only to those related within two degrees of relationship (for example, a person could sue his or her great-grandfather, but not grandfather). The Wallman bill would repeal that remaining provision.

Jenny Bohlmeyer, legislative aide to Wallman, said fewer than 10 states have a similar guest statute. "It's just an archaic law that has been in place since the 1920s," she said.

The bill cleared a committee vote and then first reading in the unicameral legislature by a 26-16 vote, Bohlmeyer said. The legislature will vote a second time as soon as Jan. 28 before a third vote on final passage, she said.

The American Insurance Association opposes the bill. Spokesman Jeffrey Junkas said it will lead to more lawsuits and potentially higher insurance costs. He conceded, however, "It will be a bit of a challenge to defeat it."

The top five writers of private passenger automobile insurance in Nebraska in 2008, according to BestLink, which provides online access to A.M. Best's Global Insurance & Banking Database, were: State Farm Group, with 24.4%; Progressive Insurance Group, 10.7%; American Family Insurance Group, 10.3%; Farmers Mutual Insurance Company of NE, 8.0%; and Farmers Insurance Group, 6.8%.

(By Sean P. Carr, Washington Correspondent: [email protected])

January 27, 2010

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