Editorial: Pass Insurance Reform Quickly

The Intelligencer, March 31, 2005

Several insurance companies already have pledged that if the state enacts reasonable lawsuit reform measures, they will cut premiums paid by West Virginians - substantially. State Senate members already have approved Gov. Joe Manchin's proposals for reform, setting up a battle in the House of Delegates.

With just a few days left in the Legislature's regular session, we are willing to bet that opponents of reform will use delaying tactics in an effort to prevent enactment of the measures. Instead of going for the kill, they will be eager to debate the issue into oblivion.

Already there are signs that opponents of reform - led by the powerful trial lawyers' lobby - are mobilizing their biggest gun, public opinion, against the measures. Their contention is that West Virginians will lose safeguards against abuse by insurance companies if reform bills are passed.

In particular, criticism has focused on "third-party bad-faith" lawsuits. Such suits are filed against insurance companies not by holders of their policies, but by others who allege claims have not been handled fairly. The reform bill already passed by the state Senate would ban such lawsuits. Instead, the state insurance commissioner would be empowered to act against companies that demonstrate "bad faith" in handling claims. Evidence of continuing "bad faith" could mean that the involved companies would be prohibited from doing business in West Virginia . That, in our opinion, is a very strong safeguard.

Members of the House of Delegates should pass the reform package - quickly. They should not succumb to delaying tactics.

Insurance reform probably will save most West Virginians hundreds of dollars a year in premiums - without adversely affecting their rights to fair treatment. And, should insurance companies attempt to abuse the law, they are well aware that what the Legislature gives this year it can take away next year.