IA&B applauds Pennsylvania lawsuit-abuse reform
Fair Share Act becomes law
Contact:
Karen Robison
(717) 795-9100, Ext. 606
HARRISBURG, Pa. (June 28, 2011) – Consumers will benefit from a new law that stymies lawsuit abuse. Gov. Tom Corbett today signed into law Pennsylvania's Fair Share Act, which limits damage payments to the party's percentage of responsibility.
"Pennsylvania has long been known for its tort climate," said Tim Burris, chairman of Insurance Agents & Brokers of Pennsylvania. "The act is a win for consumers, businesses and the insurance industry, which all carry the financial burdens of such a litigious environment."
The Fair Share Act enacts joint and several reform. Previously, someone bearing a small portion of responsibility for injury or loss could be held jointly liable and placed on the hook for 100 percent of the damages. The new law retains joint liability for defendants who bear 60 percent or more responsibility but requires only a proportional share of the judgment for those who bear little or partial responsibility.
Joint liability and the search for "deep pockets" often targeted insurance companies. That caused a trickle-down affect: driving up insurance premiums, stagnating business growth and, to a greater extent, discouraging new companies from entering the state.
IA&B identified the tort climate as a priority issue and worked throughout the legislative session with a coalition of business and healthcare associations to advocate for reform.
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Insurance Agents & Brokers of Pennsylvania delivers preeminent programs, products and services to nearly 1,300 member agencies. Led by dedicated agent volunteers and staffed by 40 professionals, IA&B is recognized and respected nationally for its industry-leading efforts in agent professional development, advocacy, industry information and knowledge base, communications and more. IA&B is affiliated with the National Association of Professional Insurance Agents and the Independent Insurance Agents & Brokers of America.
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