American Association for Justice

Legal

Pattern of Greed 2007: How Insurance Companies Put Profits Over Policyholders
Summary:     It has been two years since Hurricane Katrina swept across the Gulf Coast, leaving historic levels of death and destruction in its wake. The storm caused an incredible $135 billion in damages, leaving thousands homeless, jobless and bereft of hope. Facing their darkest hour, many of the survivors found themselves victimized a second time by an insurance industry offering pennies on the dollar, refusing to honor many agreements, and claiming that the destruction had nothing to do with wind damage, which is covered under most policies, but was caused by floodwater, which is not. Mississippi Attorney General Jim Hood declared that some insurance companies even engaged in fraud, alleging that adjusters for some firms tried to trick Katrina victims out of millions of dollars in homeowner claims. 

The Case Against “Health Courts”
Summary:     This report evaluates a proposal to replace the current civil justice system for compensating patients who have been injured by medical malpractice with a sys- tem called “health courts,” in which claims that were not settled in response to an apology and offer of settlement on behalf of providers would be adjudicated by medically-trained decision-makers employing pre-established guidelines and schedules.     The report concludes that the health court proposal is ill-conceived, that it would be unfair to patients, that it would be unlikely to achieve its objectives, and that such of its goals as are reasonable can be achieved more fairly and with greater efficiency under the existing civil justice system.

Pattern of Greed 2006: How Insurance Companies Put Profits Over Policyholders
Summary:     It’s been a year since Hurricane Katrina swept across the Gulf Coast, leaving historic levels of death and destruction in its wake, and some in the insurance industry still haven’t made good on their promise to compensate area residents who find themselves near ruin.  While the insurance industry enjoys record profits and bulging bank accounts, too many people are left waiting for the settlements that will help them get back on their feet.  It’s no surprise.  As this report relates, the insurance industry has made a practice of collecting billions of dollars from policyholders over the years and then stiffing them in their time of greatest need.  Hurricane Katrina is just the most recent example

The Truth about Torts: Using Agency Preemption to Undercut Consumer Health and Safety
Summary:     In recent years, the Bush administration has launched an unprecedented aggressive campaign to persuade the courts to preempt state tort actions.  Under the Supremacy Clause of the Constitution, Congress may choose to preempt state law from operating, and where Congress’s intent is not clear, it is up to the judiciary to determine if Congress intended preemption.

No Basis for High Insurance Rates: An Analysis of the 15 Largest Medical Malpractice Insurers 2006 F
Summary:     Medical malpractice insurers recently filed their financial statements for 2006, known as Annual Statements, with state insurance departments.        The data contained in these Statements demonstrate that the premise on which the insurance industry based its “tort reform” campaign of the last several years--that malpractice claims payments have been increasing--is false.  Specifically, the 2006 Annual Statements reveal that the amount the leading malpractice insurers project they will pay out in claims in the future has declined; that the amount they have actually paid out in claims has declined; and that their surplus--the extra cushion they have accumulated over and above the amount they have set aside to pay claims in the future--has increased to an all time high.  In addition, the 2006 Annual Statements reveal that notwithstanding the record surplus and profits of these carriers, they have generally declined to issue any dividends to their policyholders.