The Insurance Journal carried an interesting article recently highlighting a new study on tort reform that was performed by a business-backed institute. What did this study show? According to our good friends at the American Association for Justice (AAJ), the study proves that tort reform simply does not work. AAJ’s CEO Jon Haber was quoted in the article saying that the state rankings recently released by the Pacific Research Institute (PRI) clearly show that there is no connection or correlation between tort reform and liability costs.
What is tort reform? In simple English, it refers to laws that are meant to reduce liability costs through limits on various kinds of damages awarded to plaintiffs. It is part of an effort by state lawmakers to change legal procedures to prevent lawsuit abuse and to make liability insurance more affordable. Tort reform includes revising the laws that determine responsibility for damages and reducing the amount of punitive damages that civil actions can seek.
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