Only insurance companies that force injured Californians into court in order to pursue legitimate claims will be subject to litigation. These laws deserve your support. The propositions are on the ballot because insurance companies were able to obtain enough signatures to force a referendum, a process by which voters approve or disapprove of a law already on the books. With this safeguard, only insurers that act really badly toward an injured party are going to face these second lawsuits. The court reversed itself in 1988.
Abuses occur either way.
The new laws represent a good effort to achieve fairness without excesses. Insurance companies would have more incentive to act quickly and fairly on claims, rather than delaying or denying payments while an injured person faces bankruptcy over unpaid medical bills. Proposition 30 represents SB1237, which the Legislature passed last fall and which allows third-party lawsuits in certain cases. Proposition 31 is a trailer bill, AB1309, which significantly narrowed the scope of SB1237 in order to obtain Gov. Davis' signature. SB1237 contained a number of provisions that would cull out frivolous suits, and would also steer plaintiffs into binding arbitration instead of courtrooms.