The Antidote to Misinformation about Our Judicial System
Why the Insurance Industry Needs Your Money More Than You
They Have to Pay Their Executives
79 insurance industry executives received more than $5 million in compensation in 2001 -- 18 received more than $10 million (The Insurance Forum, July 2002)
| Executive, Company | Compensation |
| Eli Broad, Sun America | $48,174,739 |
| Sanford Weill, Citigroup | $26,694,959 |
| Daniel P. Amos, AFLAC | $15,141,465 |
| THomas J. McInernev, AETNA | $14,100,577 |
| Kathleen M. Graveline, John Hancock | $11,151,162 |
They Have to Pay Their Lawyers
The Tillinghast-Towers Perrin report, the same report big business and insurance industry lobbyists use to prove that there is a so-called "tort reform" problem, shows that corporate and insurance lawyers get 41 percent of ALL money paid in our legal system—just 1 percent less than what juries award to victims.
They Have to Back Pro-Business/Anti-Consumer Candidates
- In 2002, in an attempt to sway Congressional votes to reduce industry regulation, the American insurance industry gave more than $34 million dollars to federal candidates in 2002, including more than $15 million in soft money (www.tray.com). This does not count the millions spent on state elections and lobbying efforts.
- In West Virginia, the insurance industry has contributed more than $126,000 to elected officials in 2000 and 2002 who supported the industry's agenda. (People's Election Reform Coalition)
So-Called Tort Reforms Ensures the Insurance Industry Has the Money It Needs
The only group that benefits from so-called "tort reforms" is the insurance industry itself.
- Doctors, home owners, automobile owners and other policy holders do not get lower premiums. The American Insurance Association said, "The insurance industry never promised that tort reform would achieve specific premium savings" (March 13, 2002 press release). The president of the American Tort Reform Association said, "We wouldn't tell you or anyone that the reason to pass tort reform would be to reduce insurance rates" (Liability Week, July 19, 1999).
- Restricting consumers' access to courts ensures fewer payouts and more money. An analysis conducted by the Center for Taxpayer Justice following passage of MICRA, California's 1975 tort reform law, found that insurers were paying out less than 50 cents of every dollar paid in malpractice premiums -- although doctors were still paying higher premiums and victims were getting less.
West Virginia Consumers and Victims Coalition for Insurance Reform
