Insurance
Feb. 19, 2000
Propositional Craze -- Yes -- Insurers have a statutory duty to deal with claimants in good faith, and the 1999 legislation enforces that law.
By Jack Denove Until Gov. Gray Davis signed legislation in October 1999 allowing auto accident victims to sue at-fault parties' insurance companies, there was no way to keep insurers' bad faith practices in check. There was no way to deter insurance companies that wrongfully stall paying claims while waiting for elderly or severely injured claimants to die and no way to punish insurance companies that stonewall claimants lacking the financial resources to maintain a lengthy battle.
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