AIA, NAMIC AND PCI Join Together to Defeat Referendum 67 in WA State

The American Insurance Association (AIA), The National Association of Mutual Insurance Companies (NAMIC), and the Property Casualty Insurers Association of America (PCI) have joined together along with a broad based coalition of consumers, community leaders and business organizations in supporting the efforts of the 'Reject Referendum 67, Consumers Against Higher Insurance Rates' campaign.  
 
On May 15, 2007, Gov. Gregoire signed the Insurance Fair Conduct Act which lowers the threshold for allowing lawsuits against insurers, and according to the three major trades, makes Washington among the worst states in the nation for settling insurance claims. To explore a possible legislative solution to the problems posed for insurance consumers by enactment of SB 5726 the governor convened a working group to establish a dialogue between insurers and the Washington State Trial Lawyers Association. 
 
“We appreciate the governor's attempt to find a potential legislative solution that would have made the referendum unnecessary. We worked closely with her in good faith, and we regret that we were not successful," said Ken Gibson, western region vice president for AIA. "The referendum process in Washington provides the opportunity for the people to be heard very directly. As they learn about this issue, they will find it hard to understand why they and the businesses they work for should pay more for insurance only to enrich a hundred or so attorneys." 
 
“This law creates an environment in which every insurance claim holds the potential to become a ‘bad faith’ lawsuit. Insurers are already required by law to act in good faith in the interest of their policyholders, and severe penalties exist for those who do not,” stated Kenton Brine, regional manager for PCI. “Consumers benefit from the reasonable resolution of disputes - not from windfall recoveries, higher insurance costs and higher fees for attorneys.” 
 
"Any contention that insurance carriers are failing to honor their contractual relationship with their insureds is totally unfounded and down right ludicrous. Insurance carriers need to attract and maintain insurance consumers in order to stay in business. Thus, it is not in their economic interest to mistreat their insureds and risk losing that individual as an insurance client. Further, the state’s Office of the Insurance Commissioner (OIC) continuously and vigorously monitors the claims settlement practices of insurers in the state and engages in regulatory oversight designed to protect insurance consumers," said Christian John Rataj, western state affairs manager for NAMIC. 
 
The American Insurance Association represents approximately 350 major insurance companies that provide all lines of property and casualty insurance and write more than $123 billion annually in premiums.  
 
NAMIC is a full-service national trade association with more than 1,400 member companies that underwrite approximately 43 percent ($196 billion) of the property and casualty insurance premium in the United States. NAMIC membership includes four of the seven largest property/casualty insurance carriers in the nation, and every size regional, national and state specific property/casualty insurer, including hundreds of farm mutual insurance companies.  
 
PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $194 billion in annual premium, 40.1 percent of the nation’s property/casualty insurance. Member companies write 51.3 percent of the U.S. automobile insurance market, 39 percent of the homeowners market, 32.1 percent of the commercial property and liability market, and 38.7 percent of the private workers compensation market.