Insurance. Liability Insurer's Duty to Settle

Liability and liability insurance for medical malpractice.

Physicians typically carry virtually complete malpractice insurance coverage. This contradicts standard theoretical predictions that under a negligence rule of liability there should be no demand for insurance, and insurance policies under moral hazard will contain co-payment provisions. It is argued that judicial 'errors' in defining negligence generate a demand for liability and legal defense...

Liability Insurance Pricing

The goal of this article is to test whether the threat of regulating (or of more stringent regulation of) automobile liability insurance as portrayed in the popular and industry press induces insurers to change the way they price their policies. More to the point, using quarterly state data from 1984 to 1993, the author attempts to determine whether insurance companies reduced premium increases...

The Liability Insurance Crisis

The Value of A Statistical Judgment: A New Approach to the Insurer’s Duty to Settle∗

When liability insurance carries a limit that is smaller than the potential claim of a third party plaintiff, the insurer and the insured can have a conflict of interest as to settlement. The majority of jurisdictions in the United States impose upon insurers a duty to ignore liability limits when considering a settlement offer, and do not place limits on an insurer’s liability when the duty is...

International Property-liability Insurance Consumption

During the 1980s and early 1990s, the world insurance market grew substantially. World insurance premiums in 1993 accounted for about 8 percent of world gross domestic product (GDP), compared to 4 percent in 1984. This article explains a substantial proportion of the variation in propertyliability insurance consumption across countries belonging to the Organization for Economic Cooperation and ...