Motorcycle insurer pulls out of W.Va., blames legal system

June 11--CHARLESTON -- A motorcycle insurer is leaving West Virginia and blaming the state's lawsuit environment for its decision, representatives of West Virginia Citizens Against Lawsuit Abuse (WV CALA) said in a press release Friday.

West Virginia Citizens Against Lawsuit Abuse (WV CALA) recently learned from a media report that Rider Insurance of New Jersey is terminating West Virginia policies because of the state's difficult legal system. The company reportedly notified almost 6,000 customers on May 31 that it would no longer offer motorcycle coverage in West Virginia.

"The Legislature under the leadership of Senate President Bill Cole (R-Mercer) and House Speaker Tim Armstead (R-Kanawha) have made great strides in fixing West Virginia's civil justice system, as they have worked to pass several, much-needed, lawsuit reforms to bring our state into the legal mainstream," Roman Stauffer, executive director of WV CALA said.

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"More work needs to be done in areas where our state continues to be an outlier, particularly with our lack of an intermediate court of appeals. Another challenge is the Mountain State's lawsuit lottery mentality. Our courts need to be all about justice, not greed," Staffer added.

Rider's letter to its West Virginia customers states, "We have concluded that it is impossible to do business in West Virginia as a specialized company that is determined to maintain low premiums for our customers. The reason is the West Virginia legal system... It is far more difficult than the judicial system in any other state in which we write insurance."

"It's unfortunate this company will no longer do business in West Virginia, and it's an example of how lawsuit abuse can directly affect consumers. Motorcycle owners will have fewer options for liability protection, and some may have to pay higher prices. Clearly our work is not done. Citizens need to continue to call out lawsuit abuse, advocate for legal reforms -- and vote -- to make sure West Virginia courts are fair and balanced," Stauffer said.

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