Insurance trade groups are working on ways to counter the growing number of class action suits and are asking the National Association of Insurance Commissioners for help.
During their spring meeting here, commissioners were asked to establish a mechanism that would facilitate the NAICs filing of amicus court briefs in cases that involve insurance issues.
The growth in class action cases, according to David Snyder, assistant general counsel with the American Insurance Association, is undercutting the predictability of the insurance business.
Moreover, it is important for regulators to protect state regulation from the effects of class-action litigation, he said.
Insurers bear some responsibility for the growth in class action suits, Larry Mirel, insurance commissioner for the District of Columbia, said.
“You settle [class action suits] for millions of dollars and feed this frenzy,” he told insurers.
During discussions at the NAIC/Industry liaison committee, Ohio Director Lee Covington noted that “class action suits can be a vehicle to right legitimate wrongs.”