Tort laws work – depending on US state of origin
Tort laws effectively lower insurance premiums and save consumers money, but it depends on which state you live in, according to research from the University of Iowa.
Examining the way insurance companies respond to tort reform laws, the US study examined 148 laws passed by state legislators between 1985-2006, all of which intended to limit liability benefits. Of 148 attempts at tort reform, 27% were either struck down by courts or re-appealed in later legislative sessions.
The study showed that insurance companies are prepared to lower premiums. But considering they are in the business of determining probabilities, they’ve become good at determining whether a law will get through a legal challenge.
Examining the way insurance companies respond to tort reform laws, the US study examined 148 laws passed by state legislators between 1985-2006, all of which intended to limit liability benefits. Of 148 attempts at tort reform, 27% were either struck down by courts or re-appealed in later legislative sessions.
The study showed that insurance companies are prepared to lower premiums. But considering they are in the business of determining probabilities, they’ve become good at determining whether a law will get through a legal challenge.