The Liability Insurance Controversy (CRS Report for Congress)
| Release Date |
May 1, 1987 |
| Report Number |
IB86154 |
| Authors |
David Whiteman, Economics Division |
| Source Agency |
Congressional Research Service |
Summary:
Liability insurance, as the primary method of managing business-related risks, has been recognized as one of the foundations of American commerce. In recent years, insurance market difficulties involving the price and supply of commercial liability insurance, in combination with tort liability law issues, have developed into a serious and perplexing national controversy. The effects of these problems cut across virtually every sector of the economy, affecting most segments of American society, and have resulted in intense expressions of public concern. There has been considerable legislative activity at the federal level and much legislative, administrative and study activity at the state level as policymakers have struggled with the complexities of trying to determine what went wrong and how to fix it. What role and what actions may be appropriate federally is not clear because tort law and insurance regulation -- major components of the problem -- have traditionally been administered by the states. A variety of remedial measures has been taken by the states but there is as syet no consensus at the federal level for legislation that would address underlying causes of recurring insurance problems, and constituent pressure for relief and reform remains strong.
