Book Description
The question of whether an automobile accident victim should be allowed tobring a claim for punitive damages for unfair settlement practices againstanother person1s liability insurer -- a so-called third-party, bad faithsuit -- has become an important policy concern. This book examines thecompensation that automobile insurers paid to accident victims in Californiaduring a period, 1979 to 1988, when such punitive damages claims werepermitted. This book looks at the effects of the adoption and subsequentrejection of the Royal Globe doctrine, which allowed third-party bad-faithsuits, on compensation and costs of bodily injury claims. The authors findthat the adoption of Royal Globe triggered sharp increases in both theaverage bodily compensation payment and the relative frequency of bodilyinjury claims in California relative to the other tort states. In contrast,the elimination of Royal Globe dramatically reversed these trends.
Publisher comments
The question of whether an automobile accident victim should be allowed to bring a claimfor punitive damages for unfair claims settlement practices against another person's liabilityinsurer has become an important policy concern. This study examines the compensation that autoinsurers paid to accident victims in California during a period (1979 to 1988) when such punitivedamages claims were permitted. This examination was done to estimate how the availability ofsuch claims affected auto insurance costs and compensation.The Institute for Civil Justice has been conducting research on auto insurance issues sinceits inception in 1979. This report will be of interest to public and private individuals andorganizations in each state who are concerned with insurance matters.For information about the Institute for Civil Justice, contact:Alan F. Charles, DirectorInstitute for Civil JusticeRAND1700 Main Street, P.O. Box 2138Santa Monica, CA 90407-2138TEL: (310) 393-0411 x7803Internet: alan_charles@rand.
