Consumer Legal Protection
Every year, we see legislative, regulatory and policy proposals that could lead to increased legal disputes and higher costs, which impact everyone who purchases insurance for their homes, cars and other personal property.
To have a vibrant, effective insurance marketplace — that lowers costs for consumers and local businesses — consumers need a legal system that is both fair and efficient. However, many plaintiff lawyers, judges and politicians take increased measures to redefine fairness in a way that only helps themselves. In turn, this brings about more litigation, which is increasingly expensive and inefficient.
It is necessary to create more transparency and reform a number of areas of the law that are being abused, and driving up costs to consumers.Every year, we see legislative, regulatory and policy proposals that could lead to increased legal disputes and higher costs, which impact everyone who purchases insurance for their homes, cars and other personal property.
To have a vibrant, effective insurance marketplace — that lowers costs for consumers and local businesses — consumers need a legal system that is both fair and efficient. However, many plaintiff lawyers, judges and politicians take increased measures to redefine fairness in a way that only helps themselves. In turn, this brings about more litigation, which is increasingly expensive and inefficient.
It is necessary to create more transparency and reform a number of areas of the law that are being abused, and driving up costs to consumers.
Learn More Learn More Every year, we see legislative, regulatory and policy proposals that could lead to increased legal disputes and higher costs, which impact everyone who purchases insurance for their homes, cars and other personal property.To have a vibrant, effective insurance marketplace — that lowers costs for consumers and local businesses — consumers need a legal system that is both fair and efficient. However, many plaintiff lawyers, judges and politicians take increased measures to redefine fairness in a way that only helps themselves. In turn, this brings about more litigation, which is increasingly expensive and inefficient.
It is necessary to create more transparency and reform a number of areas of the law that are being abused, and driving up costs to consumers.
Learn More Learn More Every year, we see legislative, regulatory and policy proposals that could lead to increased legal disputes and higher costs, which impact everyone who purchases insurance for their homes, cars and other personal property.To have a vibrant, effective insurance marketplace — that lowers costs for consumers and local businesses — consumers need a legal system that is both fair and efficient. However, many plaintiff lawyers, judges and politicians take increased measures to redefine fairness in a way that only helps themselves. In turn, this brings about more litigation, which is increasingly expensive and inefficient.
It is necessary to create more transparency and reform a number of areas of the law that are being abused, and driving up costs to consumers.
Learn More Learn MoreFrequently Asked Questions
Since existing law already provides protections against bad conduct, bad faith outcomes have almost exclusively been connected to greater costs—to the primary benefit of trial attorneys—not improvements for policyholders. Where “bad faith” laws have been invalidated or rejected, insurance costs decreased to the benefit of policyholders.
We need to ensure that more states follow this path.
An assignment of benefits (AOB) is “a document signed by a policyholder that allows a third party, such as a water extraction company, a roofer, or a plumber, to ‘stand in the shoes of the insured and seek direct payment from the insurance company.”
For more than 100 years, AOBs have helped complete work done for a claim covered by the insurance contract — in other words, AOBs are used to help resolve insurance claims, not promote litigation. However, plaintiff attorneys and service contractors have turned AOBs’ intended use upside down, using them not to settle claims, but to generate lawsuits and increase their fees. As AOB lawsuits and litigation expenses have dramatically increased, consumers—caught in the middle—end up paying the price.
Lawmakers need to put insurance consumers ahead of litigation abusers and restore AOB to its original and legitimate intent.