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From: herbie@polaris.UUCP (Herb Chong)
Newsgroups: net.misc
Subject: Re: Insurance Industry
Message-ID: <506@polaris.UUCP>
Date: Mon, 28-Apr-86 19:44:08 EDT
Article-I.D.: polaris.506
Posted: Mon Apr 28 19:44:08 1986
Date-Received: Fri, 2-May-86 23:40:18 EDT
References: <5981@allegra.UUCP> <7405@cca.UUCP> <195@anasazi.UUCP>
Reply-To: herbie@polaris.UUCP (Herb Chong)
Organization: IBM TJ Watson RC
Lines: 28

the insurance industry in the US appears to be a positive feedback
system.  i think that this is because lawyers are allowed to charge as
part of their fee a percentage of the award in liability case.  if the
lawyer is being paid out of the award then obviously the maximum award
possible will be asked for in the hopes of getting the largest possible
gains.  juries look and see that xxx received nM$ for grief and
personal anguish and decide that party yyy suffered at least that much
so they should get at least nM$ too and perhaps a bit more for punitive
damages.  guess who really pays those damages.  couple that with what
must be the most lawsuit-happy country in the whole world and rates
spiral because aw Cds spiral because lawyers make more when the aw rds
go up.

in Canada, i believe it is illegal for lawyers to charge anything
other than a flat fee.  aw Cds for damages and such are much lower
and insurance costs are not quite so outrageous.

Herb Chong...

I'm still user-friendly -- I don't byte, I nybble....

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