Tag Archives: insurance

Looking at PCI Statement on Gun Insurance to Connecticut Legislature

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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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DC Bill on Gun Insurance B20-170 Hearing

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The bill in the District of Columbia Council, B20-170, requiring insurance for guns will have a hearing at 10AM on May 16, 2013.  The text of the bill requires liability insurance of $250,000 for gun owners.  It provides for willful acts.

(b) The insurance policy required under subsection (a) of this section shall specifically cover any damages resulting from negligent acts, or willful acts that are not undertaken in self-defense, involving the use of the insured firearm while it is owned by the policy holder.

The announcement of the hearing provides for written statements until May 30, 2013.

National Assn. of Mutual Insurance Co’s Against Gun Insurance.

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In a opinion article on Property Casualty 360 titled “Major Misfire” Paul Tetrault, state and policy affairs counsel for NAMIC, denounced the move in seven states and Congress to require insurance on guns.  He repeated the statements that insurance cannot cover intentional acts.  This blog has several times published numerous examples of current insurance that does cover intentional and even criminal acts to the benefit of parties other than the person who does the acts.  This was pointed out to NAMIC but their spokesperson emailed that the organization stands behind the article.

New Analysis on Guns, Insurance and the Second Amendment by Lund and Gilles.

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A paper “Mandatory Liability Insurance for Firearm Owners: Design Choices and Second Amendment Limits” has been published by Nelson Lund of the George Mason U. School of Law and by Stephen G. Gilles of the Quinnipiac University School of law. While there have been simple calls for requiring gun insurance and comparisons of guns and cars at various times, Nelson Lund’s paper of 25 years ago “The Second Amendment, Political Liberty, and the Right to Self-Preservation” in the Alabama Law Review is the only serious and significant source known to this blog to address the issue prior to the Sandy Hook incident. The title of the new paper fairly describes its focus. Many issues of interest to those who want to think about the possibilities of using insurance to protect the public and compensate shooting victims are raised.

The authors of the paper are among those who believe that the Second Amendment gives individuals wide gun rights and that the narrow findings of the Heller decision only start to describe the limits of governmental regulation in this area. Others believe that Heller was the product of a momentary and ideological combination of justices which will not be expanded and will eventually fade in importance or even be overturned. The paper takes the view that, even under the broad interpretation of the Second Amendment, mandated insurance may have a role in containing gun violence. It does, however, see that role as being much more limited than does the author of this blog.

While this blog does not consider the Second Amendment as a major barrier to implementing effective gun insurance, many others do. This new academic analysis by widely respected conservative philosophers and thinkers is very valuable in laying out the nature of that objection. The paper should be read and considered carefully by anyone who is serious about understanding the possible role of insurance in dealing with America’s gun violence problem.

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North Carolina Added to States with Gun Insurance Bills

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A bill HB976 has been introduced in the North Carolina Legislature.  It has several gun control provisions including $100,000 in mandatory gun liability insurance.  This insurance goes farther than in most other states by applying to willful acts and to unreported stolen guns.  The bill introduced by Rep’s Luebke, Insko, Harrison and Adams has 7 sponsors so far.  It was introduced on 4/17/13, showing that momentum to deal with gun violence is continuing and that insurance is seen as a part of the solution.  There have now been bills introduced in 9 states and the US House.

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

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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

Insurance-Good for Victims, Safety and Gun Owners

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We have responsible ways to handle things which are dangerous but which are not made illegal because of their actual or assumed benefits to society. We look carefully at ways to contain the dangers and enjoy the benefits in almost every case. The exception is firearms, but we are just beginning to pull our heads out of the sand and examine this important subject.

First Principle — Mandatory No-Fault Insurance to Cover All Victims

One of the most powerful tools to facilitate a dangerous activity is insurance. Unfortunately, requiring insurance to cover gun violence has been looked at only as a way to penalize gun ownership or at least to transfer costs to gun owners. The result is calls for high limit liability insurance, usually with terms that make actual implementation unlikely. This blog argues that the tort/liability model is one of the least effective ways to increase safety and provide for victims. A No-Fault system similar to worker’s compensation or some motor vehicle insurance is much better. It needs to follow a gun that changes hands in a way to insure that all guns are covered.

Second Principle — Top Down Insurance Does Not Require Gun Registration or Owner Tracking

This blog also is advocating that insurance be required of gun manufacturers or anyone bringing a gun into the system in such a way that the insurer only relinquishes responsibility when another insurer (contracted by a new owner) takes it up. Insurance should remain in effect through any transfer legal or not. This would allow confidence that insurance was always in effect without tracking the gun owners. With a proper No-Fault system the victim would not have to even be told the name of the owner to collect compensation. All transactions by claimants or the government would be with the insurance companies.

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$100K in Jewelry Stolen From Car

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Yahoo’s OMG reports that an actress who left the jewelry in her car had it stolen while she was at a friend’s Hollywood apartment.

So what’s this got to do with gun insurance?

Well, hundreds of thousands of guns go bad by being stolen each year, many from cars. The value of the object being stolen does not seem to be adequate to prevent this problem. Insurers will limit this exposure if they are going to be responsible for the future damage the guns do. Of course, responsible gun owners don’t leave their guns in cars. Insurance is a way to engender that responsibility.

Oregon SB-758 First State Bill for Effective Gun Insurance

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Senators Dingfelder and Burdick with Representative Denbrow have introduced a bill in the Oregon Legislature (SB-758) which is the first effective plan for gun insurance that would provide for victims. It works by imposing strict liability on a gun owner for injuries associated with a gun even for one year after the gun is lost or stolen. There is no limitation to economic damages as is typical of no-fault motor vehicle insurance. The limits are set quite high at $250,000 for physical injury or death. Continue reading →

Workers’ Compensation Insurance and Gun Insurance

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Motor vehicle insurance has been the obvious model for insurance advocated by this blog to provide for victims of gun violence. There are many parallels, especially with No-Fault versions to serving the gun situation. There is another place in our society were insurance was poorly working to protect injured persons and where society with the insurance industry has produced a system which has shown durable benefits in efficiently dealing with an important risk. Continue reading →