Washington Voters Pass Measure Allowing Punitive Damages from Insurers
Despite opposition from insurance companies, Washington State voters have passed a measure that will allow plaintiffs to sue their insurance carriers and collect triple the amount of damages – an amount not usually allowed in Washington courts -- if a court decides the insurers were ``unreasonable'' in denying claims.
Insurers warned that it would force them to raise prices for home and auto insurance. Paula Rosput Reynolds, CEO of Seattle-based insurer Safeco Corp., added that the measure was so vague that it will cause companies to settle frivolous lawsuits to avoid massive jury verdicts.
Those in favor of the measure, including the state's insurance commissioner, say consumers need protection comparable to that in most other states.
Published on November 7, 2007
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