Members of the West Virginia Insurance Federation have endorsed the findings of a West Virginia Insurance Commission report calling for elimination of private third party cause of action lawsuits brought under the Unfair Trade Practices Act.
“The Insurance Federation commends the Insurance Commission for its year-long legal and economic analysis of this issue,” Jill C. Bentz, WVIF president said. “The report confirms what our membership has been saying for years that third party lawsuits result in larger premiums for West Virginia policyholders.”
The Insurance Commissioner’s report came as the result of legislation enacted in 2004 (House Bill 4004) that required the state agency to study and report on the legal and economic consequences of West Virginia’s third party cause of action and the resulting effects on insurance rates and availability.
“The report shows that West Virginia has higher bodily injury claim costs when compared to non-third party states,” Bentz said. “These private cause of actions cost $166.7 million per year.”
Topics Virginia
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