IS THERE AN INSURANCE CRISIS?

Insurance industry statistics rebut the argument that large jury verdicts are responsible for a so called insurance crisis. Insurance premiums are primarily market driven. Jury verdicts have had virtually no effect on insurance premium increases for any consumers, medical professionals, and hospitals included. In fact, the property and casualty insurance industry's net income for the first half of 2004 was the highest ever recorded breaking 23.5 billion. That same industry's surplus is also at a record level of over 370 billion.1 Despite medical negligence damage caps in 19 states, most insurers continue to increase premiums for doctors, and states with caps have average insurance premiums that are 9.8% higher than states without caps.2 The fact remains that the insurance industry is perhaps the most viable business industry in America today.

While the insurance lobby and the political climate of today stress tort "reform", such reforms have not and will not decrease insurance costs. These so-called reforms are attempts to eliminate fundamental and treasured American rights such as access to the courts, trial by jury, and the right to be fairly compensated for injury caused by the negligence of another. Multiple studies conducted over the last several years comparing insurance premiums in states with extensive tort reform laws, states with moderate tort reform laws, and states with few such laws consistently conclude that there is little difference in the cost of insurance.

Tort Reform will Magnify Victims' Pain, Jay Bookman, Atlanta Journal- Constitution, April 1, 2004, www.commondreams.org/views04/0401-04.htm

Rose: The Tort Reform Scam, John David Rose, Carolina Morning News, January 23, 2004, http://www.lowcountrynow.com/stories/012304/LOCrose.shtml

The Hypocrites of Tort Reform, Emily Gottlieb, TomPaine.common sense, May 8, 2001, http://www.tompaine.com/feature2.cfm/ID/4286

The TRUTH About the Civil Justice System, The ATLA Press Room, Association of Trial Lawyers of America, http://www.atla.org/ConsumerMediaResources/Tier3/press_room/FACTS/frivoulous/THETRUTHciviljusticesystem.aspx

U.S. Department of Justice -Office of Justice Programs
Bureau of Justice Statistics

Tort Trials and Verdicts in Large Counties, 1996

Did you know that in our Nation's largest counties the median jury award in 1996 was only $31,OOO? The U.S. Department of Justice- Bureau of Justice statistics also provides other interesting statistics. Highlights include the following:

• Forty-two percent of tort trials involved a private individual suing another individual. About 39% of tort claims involved an individual suing a business.
• Plaintiffs won in 48% of tort trial cases. Plaintiffs were more likely to win in tort trials decided by a judge (57%) than a jury (48%). Plaintiffs won in 58% of automobile accident trials, 57% of intentional tort trials, and 23% of medical malpractice trials.
• The median final award to plaintiff winners in tort trials during 1996 was about $31,000. Seventeen percent of final awards exceeded $250,000 and 6% were $1 million or more.

8/00 NCJ 179769
http://www.ojp.usdoj.gov/bjs/abstract/ttvlc96.htm

U.S. Department of Justice -Office of Justice Programs
Bureau of Justice Statistics

Tort Trials and Verdicts in Large Counties, 2001

Did you know that the number of tort jury trial in large counties actually decreased by 25% from 1992 to 2001? Present findings about tort cases disposed of by jury and bench trial in federal jurisdiction courts in the Nation's 75 largest counties during 2001. Information from the Civil Justice Survey of State Courts in analyzed about types of tort cases and litigants, type of trial, plaintiff winners, compensatory and punitive monetary damages awarded to plaintiff winners, and case processing time. Analyses are presented describing trends in tort jury trials. Information on plaintiff and defendant post verdict activity at the trial court and appellate levels are also described.

Highlights include the following:

• Plaintiffs won in 52% of tort trials in 2001
• The 7,218 tort jury trials disposed of in 2001 represents a 25% decline from 9,431 tort jury trials disposed of in these counties in 1992
• Litigants filed notice of appeal to a State appellate court in 13% of tort trials disposed of in 2001

11/04 NCJ 206240
http://www.ojp.usdoj.gov/bjs/abstract/ttvlc01.htm