The Effects of Third-Party Bad Faith Doctrine on Automobile Insurance Costs and Compensation 2001

Product 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.

The Effects of Third-Party Bad Faith Doctrine on Automobile Insurance Costs and Compensation 2001