Tort Reform Action Center

While generally thought of as more than $10 million, verdicts that are greater in monetary value than verdicts of a similar nature for acts and resulting injury can be referred to as “nuclear” when they are of such a nature that they are greater than what a majority of individuals would believe to be fair for such injuries or harm. In the legal system, insurance carriers are quite often on the hook for paying these exorbitant claims, even when the premium charged for the underlying policy does not reflect the possibility for payment of such a verdict. While insurance carriers can absorb some of these verdicts, multiple verdicts such as this force insurance carriers to pay for these verdicts through higher premiums. A recent study estimated that this results in each Missourian paying almost $1,000 more each year in insurance premiums. Further, when some states, Missouri included, become such an unfriendly place for insurance companies to do business, carriers begin to cease writing business in that state altogether.

One of the most rampant and destructive tools used in litigation currently is Third-Party Litigation Funding, or TPLF. This is the practice of entities that are not a direct party to a lawsuit injecting money into the process in support of the plaintiff, hoping that a large jury verdict will be rendered and the entity recognizes a significant return on their investment. 

When substantive tort reform is passed in a given state, the climate for the insurance industry and business as a whole is generally improved, and premiums reflect that. But tort reform can be difficult to pass via legislation in a state. There are those, particularly trial attorneys, that would have citizens believe that tort reform is aimed at chipping away or completely taking away an individual’s right to recover damage payments after being injured due to the negligence of another party. Nothing could be further from the truth!! The tort reform we seek balances the two sides of that equation, allowing injured parties to recover damages while allowing for a legal environment in which insurance companies can operate and expect a fair profit.

Okay, so now that you want to contact your legislators, who are they anyway? Great question! Enter your address on Legislator Lookup to find out who your Missouri state senator and representative are. Then reach out to their offices.

Agent participation in achieving substantive tort reform is absolutely necessary. In the end, we don’t cast the votes to pass legislation. Only elected legislators do. As such, it’s important that legislators know that their constituents want substantive tort reform to become law as a way to keep insurance both available and affordable in Missouri. So, agents need to be involved in the legislative process by contacting their elected senator and representative and explaining why tort reform is needed, and urging them to cast votes in favor of such.

Here’s how you can get involved:

Attend MAIA’s Day at the Capitol

Plan to attend MAIA’s Day at the Capitol and speak with your respective legislators in person. This annual event takes place in early March, is free for MAIA members and provides an opportune time to visit with legislators.

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Send letters to Legislators

Below is a sample letter you can send to your legislators, as well as one you can provide to your clients to send to their legislators.

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Educate Your Clients

Trusted Choice has resources available to assist in educating your clients about the importance of tort reform, including videos and social media graphics.

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Contribute to PACs

Agents should also contribute to MAIA’s political action committees (PACs). Links to both our state and federal PACs are at the top of this page. Contribute today if you care about improving the insurance industry in Missouri.