Lawsuit Reform Savings

Governor Bushwhacked Over Lawsuit Savings
With White House as the Prize, Truth Takes a Beating

Everyone has gotten a piece of the lawsuit reform savings in Texas—except the personal injury trial lawyers. And they are none too pleased about it.

$3 Billion is Hardly Chump Change
$3 billion is the savings drivers, doctors and businesses have received since a slew of lawsuit reforms were in Texas in 1995.

Insurance Rate Rollback
In October, Insurance Commissioner Jose Montemayor, ordered $685 million in tort reform savings on various lines of liability insurance during 2000. This raises Texas tort savings to an estimated $2.9 billion since 1996. The latest round of reductions affect drivers, doctors and businesses and will apply to rate–regulated policies written or renewed after January 1. The following are the approved rate reductions by line of insurance:

Private Passenger Auto 9.2%
General Liability 19.6%
Commercial Auto 13.8%
Medical Malpractice 17.2%
Other Liability Lines 2.1% - 21.7%

Many Houston area drivers are paying 18-36% less for full coverage today than they were four years ago. Essentially, this savings amounts to a free year of auto liability coverage as a direct result of lawsuit reforms.

Houstonians have been experiencing the deepest auto rate cuts in the state because claims losses here have fallen further and faster than other regions.

Workers' Comp Refunds
Many Houston businesses received an unexpected Christmas present courtesy of the Texas Workers’ Comp Insurance Fund. Some $206 million in special dividend checks were issued to policyholders. In most instances, a company’s refund was equal to the amount the firm paid in maintenance surcharges to the state for the years 1994-1998. This is further proof that the workers’ comp program is working.

Citizens Against Lawsuit Abuse

2500 City West Boulevard, Suite 300 • Houston, Texas 77042
E-mail: sosueme@ • Administrative: (713) 267-2302 • Fax: (713) 267-2267