Looking at PCI Statement on Gun Insurance to Connecticut Legislature

The insurance industry through its trade group spokespersons has been very negative on the possibilities of dealing with the gun violence problem by means of requiring insurance. The legislative proposals made so far have all been very narrow calls for conventional liability insurance sometimes with high limits. The trade groups have been quick to jump on the limitations of that approach and on projected difficulties with implementation. The quotes in various new articles have been very hostile to gun (and actually all) insurance.

In a statement made to the Connecticut State Legislature on March 19, 2013 the Property Casualty Insurers Association of America (PCI) made a more carefully worded opposition to such insurance. This allows an analysis of the reasons for the reservations of the insurance industry on this matter.

PCI opposes this legislation because it will be ineffective in curbing gun violence and will create significant burdens for law abiding gun owners and insurers. As a general rule, PCI opposes mandating the purchase of liability insurance. We have found that mandatory insurance requirements are often ineffective and serve only to add enforcement and administrative costs for both government entities and insurers.

The comparison with motor vehicle insurance is relevant here in showing that this is a ridiculous statement. While it varies greatly from state to state, in many states motor vehicle insurance is mandatory, enforced and highly effective in compensating injured persons. In states where it is not effective, it is because insufficient insurance is mandated or enforced.

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PreventingNewtown Blog Points Out Gun Insurance Benefits

A new post by Julia Hartman on the PreventingNewtown blog titled “A Case for Gun Liability Insurance” gives a thoughtful and interesting discussion of the benefits of requiring insurance to protect victims of gun violence.

The post gives a moving presentation of the damage done daily by guns and calls for insurance as a way to deal with the problem.  It makes the comparison to motor vehicles and points out the fact that gun deaths exceed motor vehicle deaths in 10 states currently.  Suicides are handled on a par with homicides and accidents, an position which is often opposed by those supporting the status quo for gun policy.

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Firearm Risk Protection Act introduced in Congress H.R. 1369

For details on the recommendations by this blogger on how to implement this bill and have this insurance see my the April 2 post on Daily Kos

A bill titled the Firearm Risk Protection Act  has been introduced by Rep. Carolyn Maloney in the national Congress. As of March 29, 2013 there is not text available on Congress.Gov but the bill has been referred to the House Committee on the Judiciary. Rep. Maloney’s press release states that the bill will impose a $10,000 fine if an owner does not have the required coverage. It exempts service members and law officers.

Other details have yet to be developed. Rep. Maloney’s press aide stated that in a phone call and email that “like all legislation, it was meant to start a conversation about national priorities” and welcomed input to the process. This blogger will certainly be following the bill and recommending that it be done in a way that provides the maximum protection to victims. It’s likely that the bill authors have in mind a relatively simple model of Liability insurance which could be improved by adding provisions to:

  1. Follow guns as they are lost or stolen
  2. Eliminate provisions to limit coverage for intentional acts
  3. Eliminate requirements for negligence by gun owners
  4. Require steps it aid identification of the responsible weapon

The bill has 8 cosponsors so far:

  1. Keith Ellison MN-5
  2. Eleanor Holmes Norton DC
  3. Michael E. Capuano MA-7 20
  4. James P. Moran VA-8
  5. Bobby Rush IL-1
  6. Niki Tsongas MA-3
  7. Stephen F. Lynch MA-8 202-225-8273
  8. Earl Blumenaur OR-3 202-225-4811