A Report on the Liability Insurance Crisis in the State of California
Report #74,
July 1986
A Report on the Liability Insurance Crisis in the State of California
Full Report
Executive Summary
Press Release
Fact Sheet
Study Description
Agenda
Overview
This study identifies five major factors in the liability insurance crisis in California, including the evolution of tort reform, lack of predictability in risk assessment, unsound rate-setting practices, withdrawal of the reinsurance market, and the Insurance Commissioner's lack of authority in the rate-setting process.
The report contains 16 findings and 16 recommendations, which include establishing a "cap" on the recovery of compensatory damages in personal injury actions; prohibiting collusion between plaintiffs and settling defendants; and establishing a stricter burden of proof for punitive damages.

