Posts Tagged ‘insurance’

Proposals to require gun owners to buy liability insurance

They appear to be going nowhere in state legislatures:

A mandate for gun buyers could be more challenging than for drivers, given insurers’ aversion to the risk from assaults. That compares with U.S. auto insurance, where companies spend more than $5 billion a year to win customers in a $178 billion market.

“That’s why things like mandatory auto insurance kind of work, because you’ve already got a highly functional market and it’s a matter of herding the last stragglers into it,” Walter Olson, a senior fellow at the Cato Institute, a think tank dedicated to limited government, said in an interview. “But when there is no functional insurance market at all for some kind of risk, it’s a different question.”

It doesn’t help that the ObamaCare episode has raised public resistance to the idea of mandatory insurance. Related: even two authors somewhat favorably disposed toward the idea, and who believe it might be enacted in some forms without overstepping the Constitution, predict its effect in reducing injury by deterring negligent gun handling would “probably not be very great.” [Stephen Gilles and Nelson Lund, Regulation magazine (Cato, PDF)]

May 26 roundup

Hurricane Sandy, meet Mighty Wind

A Houston-based trial lawyer has some grandiose plans for snagging New York storm-insurance cases: Steve Mostyn “indicates his firm should be able to take on more than $1 billion in disputed claims — or half of all the Sandy litigation.” That’s assuming clients sign on, of course. One who did was a swim club owner from Pound Ridge who was frustrated dealing with New York lawyers and quickly signed a contract with Mostyn’s firm: “It is worth the 40 percent just for someone to listen to my story and be kind to me,” she said. [Austin American-Statesman]

Law schools roundup

  • Harold Lasswell and Myres McDougal’s influential article on legal education figures prominently in Schools for Misrule; Henry Manne says their scheme of actual classroom pedagogy did less well [Bainbridge]
  • Deanship of local plaintiff’s attorney at St. Louis U. is short, colorful [NLJ]
  • GW lawprof trips, falls at Denver Law event, now in court [Above the Law]
  • Law reviews requiring authors to sign indemnity clauses. Reason for alarm? [Dan Markel, Prawfs]
  • Out-of-touch law academy, vol. 18: Duke prof dismisses floodgates arguments on principle [Ted Frank]
  • “Should Law Reviews Consider Race When Selecting Articles?” (and do they?) [Josh Blackman]
  • Insurance is an undercovered topic in the law school curriculum, so Randy Maniloff decides to do an intervention [Coverage Opinions, PDF, lead article]

Proposals to make gun owners carry liability insurance

“Liability insurance” may be a misnomer, since some of the proposals would require the purchase of bonds against both intentional acts commonly excluded from ordinary liability coverage, and also misadventures for which owners would not presently be held legally responsible (such as third party criminal use of a gun following a theft not occasioned by owner negligence.) [Reuters, Nelson Lund/GMU, Jessica Chasmar/Washington Times, New York Times via Fed Soc, Taranto/WSJ, Josh Blackman]

Would a mandatory insurance scheme survive judicial scrutiny if it were motivated by a desire to burden the exercise of a constitutional right? David Rifkin and Andrew Grossman, WSJ:

Several states… are considering gun-insurance mandates modeled after those for automobile insurance. There is no conceivable public-safety benefit: Insurance policies cover accidents, not intentional crimes, and criminals with illegal guns will just evade the requirement. The real purpose is to make guns less affordable for law-abiding citizens and thereby reduce private gun ownership. Identical constitutionally suspect logic explains proposals to tax the sale of bullets at excessive rates.

The courts, however, are no more likely to allow government to undermine the Second Amendment than to undermine the First. A state cannot circumvent the right to a free press by requiring that an unfriendly newspaper carry millions in libel insurance or pay a thousand-dollar tax on barrels of ink—the real motive, in either case, would be transparent and the regulation struck down. How could the result be any different for the right to keep and bear arms?

(& slightly expanded/adapted version at Cato; The Hill “Blog Briefing Room”)

P.S. The American Insurance Association is opposed to the more ambitious versions of the idea, at least: “Property and casualty insurance does not and cannot cover gun crimes.”

“A Risk of Relapse Is a Disability, Court Rules”

“A federal appeals court on Thursday ruled that insurance companies can be required to pay long-term disability benefits to a recovering drug addict if the person would face a significant risk of relapse by returning to work.” The First Circuit parted company with the Fourth, which has ruled the opposite way. [Jacob Gershman, WSJ Law Blog, subscription; Colby v. Union Security Insurance, PDF]

R.I.P. Jeffrey O’Connell

The “father of no-fault,” who died on Sunday at age 84, was an eminent torts professor at the University of Virginia, a public-spirited advocate of reform over many decades, and a renowned teacher. A valued friend and mentor, he was one of the most personally gracious and generous academics I’ve ever known. The New York Times has a good obituary. Just last year New Hampshire enacted an “early offers” statute encouraging prompt settlement of medical malpractice disputes partly inspired by Prof. O’Connell’s work. More: University of Virginia, Christopher Robinette/TortsProf.

“Concussion Liability Costs May Rise, and Not Just for N.F.L.”

As we were saying: “colleges, high schools and club teams may be forced to consider severe measures in the face of liability issues, like raising fees to offset higher premiums; capping potential damages; and requiring players to sign away their right to sue coaches and schools. Some schools and leagues may even shut down teams because the expense and legal risk are too high.” [New York Times, also describing a coverage battle between the NFL and its insurers]

Federal flood insurance: the Sandy next time

“After disasters such as Superstorm Sandy, the natural inclination is to do everything possible to help people struggling to rebuild their homes, businesses and lives. But over the next couple of years, those good intentions will lead to a lot of foolish, even dangerous, decisions that will encourage people to rebuild in harm’s way.” [USA Today editorial via Ira Stoll]

October 31 roundup