American Law Institute’s Proposed Liability Insurance Restatement Could ‘Upend the Insurance Market’
May 22, 2017
A restatement of the American Law Institute’s (“ALI’s”) Proposed Liability Insurance Restatement “violates legislative prerogative,” said National Conference of Insurance Legislators (“NCOIL”) CEO and Commissioner Tom Considine in the NCOIL newsletter issued today, May 22, 2017.
Some legal experts say the Proposed Restatement “will upend the insurance market and lead to dramatic increases in pricing.”
- To read an analysis and history of the project, click here.
- To access the tentative drafts, click here and scroll down to the bottom of the page.
- For an in-depth description of this project, visit the Liability Insurance page of The ALI Adviser.
Chapter 1 (Basic Liability Insurance Contract Rules) and portions of Chapter 2 (Management of Potentially Insured Liability Claims) and Chapter 3 (General Principles Regarding the Risks Insured) have already been approved by the ALI membership. Chapter 4 (Enforceability and Remedies) and the remaining Sections from previous Chapters will be submitted to the membership during the third day of the ALI’s 94th Annual Meeting tomorrow.
“We urge the ALI to delay consideration of this Restatement . . . and enter into an immediate dialogue with state legislators” Commissioner Considine said. “This proposed restatement delves into the realm of legislative prerogative and departs from settled law.”
Should you have any questions or comments, please contact Colodny Fass.
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