Battle over low cost insurance bills begins: no-fault advocates given new hope by growing support.Battle over low cost insurance bills begins No-fault advocates given new hope by growing support A battle of the titans is shaping up in Sacramento as the powerful lobbies of insurers and trial lawyers line up behind two competing bills to provide low cost auto insurance for Californians. Legislative hearings on the bills begin this week. At issue is whether the insurance plan that passes will contain provisions for no-fault insurance no-fault insurance, type of indemnity plan, usually applied to automobile coverage, in which those injured in an accident receive direct payment from the company with which they themselves are insured. , effectively limiting the conditions under which trial lawyers can sue following an automobile accident Ask a Lawyer Question Country: United States of America State: Utah Say you're at a red light in a left hand turning lane and the light turns green so you let up slightly on the break antedating moving forward and the vehicle . No-fault proponents have received repeated setbacks in the drive for no-fault insurance. In 1988, voters by wide margins defeated two no-fault bills backed by insurers and instead passed anti-insurer Proposition 103. And early last year a no-fault bill nearly identical to the current proposal died in the Assembly Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. committee. Things are different this time around, no-fault advocates claim, because support from consumer and minority groups has grown, and Gov. Pete Wilson For others named Pete Wilson, see . Peter Barton Wilson (born August 23, 1933) is an American Republican politician from California. Wilson served as the thirty-sixth Governor of California (1991–1999), the culmination of more than three decades in the public arena that is vocally supporting the bill. "We are heartened by the growing interest by the governor and consumer groups, but we should not underestimate the opposition of the California Trial Lawyers, who have fought hard to defeat it in the past and will do so again," said Jeff Shelton, legislative aide to State Sen. Patrick Johnston Patrick Johnston may refer to:
Opponents of the bill call it a fraud which shifts the burden of paying claims away from insurance companies. "It's a scam on the poor," said Ian Herzog, president of the California Trial Lawyers Association. "It gives them nothing and wipes out innocent victims' rights victims' rights, rights of victims to have a role in the prosecution of the perpetrators of crimes against them. Nearly all U.S. states have enacted some victims' rights legislation. ." The bill would offer basic first-party auto insurance, providing $15,000 in coverage for economic losses, such as health care bills and lost wages, to all California driving victims. The bill, SB 941, is supported by most insurance organizations, many consumer organizations and Wilson, and is a warmed over version of a bill Johnston
Herzog said the bill cheats the poor because the $15,000 worth of medical coverage is only applicable after health insurance, workers compensation, Medicare and medical coverage are used up, effectively shifting the insurance burden to health insurers. Herzog said that health insurers have not come out against the bill because they are unaware of its implications. Shelton disagreed, stating that only workers compensation coverage would be tapped before auto insurers were required to pay. Herzog also asserted that Johnston's bill only guarantees a low rate for good drivers for the first year, after which insurers could increase the rate. Such increases, however, would have to be approved by Insurance Commissioner John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. . No-fault advocates claim that support for no-fault has grown. John Gamboa, director of the San Francisco-based Latino Issues Forum, said that about 50 Latino organizations representing some 50,000 members now support the no-fault bill, compared to 12 groups with 10,000 members the last time a no-fault bill was introduced. Opponents of the no-fault bill, however, note that William Lockyer (D-Hayward), chairman of the Senate Judiciary committee The U.S. Senate established the Committee on the Judiciary on December 10, 1816, as one of the original 11 standing committees. It is also one of the most powerful committees in Congress; among its wide range of jurisdictions is investigation of federal judicial nominees and oversight of where the bill will first be heard, opposes the bill. More serious opposition comes from Garamendi, who is backing the competing, Assembly Speaker Willie Brown-authored bill. The new Brown bill, AB 1375, is nearly identical to an old Brown bill which was passed by both legislative houses in 1989, but was vetoed by then-Gov. George Deukmejian Courken George Deukmejian, Jr. (born July 6, 1928) is an American Republican politician from California, the thirty-fifth Governor of California (1983-1991), and a former California Attorney General (1979-1983). . It is supported by the trial lawyers association and many minority and labor union labor union: see union, labor. groups. The bill would mandate a low-cost policy with provisions to encourage binding arbitration claims under a certain amount, try to impose medical cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. , impose antifraud provisions, shift the cost of insuring the poor to poor drivers and insurance companies and implement auto safety provisions. A key difference between the two bills is that the Johnston bill would allow lawyers to sue for pain and suffering only for serious or permanent injury and for out-of-pocket losses above those paid by the insurer under the policy. The no-fault bill would also have a driver's own insurance company pay for initial coverage, regardless of who was at fault. Many large consumer groups lined behind the no-fault bill, including such major groups as Consumers Union, Consumer Action, Public Advocate, the Greenlining Coalition and Public Advocates. Some consumer groups, such as Ralph Nader's Public Citizen and Proposition 103 author Harvey Rosenfield's Voter Revolt, are opposing the Johnston bill. Both sides are lobbying members of the Senate Judiciary committee. |
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