Should Iowa Auto Insurance Companies Be Required to Disclose Limits?

Pending law before the West Virginia legislature would allow attorneys representing persons who are injured in automobile accidents access to information about the other driver's insurance coverage and liability limits before a lawsuit is filed. Insurers who fail to provide information could be subjected to a fine plus attorney's fees and other expenses incurred by injured persons in obtaining the information after a lawsuit is filed. Twelve other states have similar legislation.

Supporters say that it will prevent the filing of unnecessary lawsuits, especially in cases where an injured person has suffered significant medical expenses and lost wages only to find that the clearly responsible driver has minimum insurance limits, which could and should have been paid before the filing of a suit. Opponents claim that it will have the opposite effect since injured person's attorneys may demand higher settlements in cases where the driver's policy has higher limits.

Similar legislation was been proposed in the Iowa legislature in last year’s session but failed to win support.

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