Tuesday, June 7, 2011

Critics: Insurance Companies Benefit from NC Tort Reform Bill

RALEIGH, N.C. - Cutting costs for insurance companies is the end result of a bill that passed the North Carolina House last week, according to those who oppose the legislation. They say it would be at the expense of the public, since in the event of an auto accident or similar circumstance, the extent to which a person in North Carolina can hold someone else accountable for injuries could soon be limited..

If House Bill 542 becomes law, people hurt by the actions of others will be required to reveal the amount of insurance they have while, at the same time, defendants would be able to keep their insurance coverage secret.

Raleigh attorney Chris Nichols doesn't think that's fair when, for example, someone is injured by a drunk driver.

"The North Carolina GOP wants to change the law and allow an irresponsible driver to take advantage of the benefits that responsible people have worked for and paid for."


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HB 542 passed the House last week and is now in the Senate Judiciary Committee. If voted out of committee, it will go to the Senate floor by June 17.

Nichols believes state lawmakers are bowing to the pressures of insurance company lobbyists.

"North Carolina has always favored the people; we're a populist state. And, if the governor signs this bill, she is reversing that trend. We become a state that caters to corporate interests only."

Those in favor of this provision and others in the bill insist they are a necessary part of tort reform for the state, to rein in the costs of legal action.
Stephanie Carroll Carson, Public News Service - NC

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