Picture this: a contractor comes out to your house to give you an estimate for a new deck. The contractor looks at the project, and then asks you for a copy of your tax return so she can work up a price quote. Concerned?
If you are, then you might share the insurance industry’s view of HB 921. The legislation, heard last week in the House Judiciary Committee, requires an insurance carrier, upon written notice of a claim, to disclose to the plaintiff the amount of insurance coverage on the claim. Under current law, that information only is required to be disclosed after a lawsuit is filed.
Plaintiffs’ lawyers believe early disclosure of policy limits will lead to faster claims settlements and fairer negotiations. They say the current law on disclosure encourages unnecessary lawsuits. This happens when a high-damaged plaintiff starts settlement negotiations. Even if you have $50,000 in medical bills, you still might take an insurance company payment of $30,000 if that is all the insurance available. But if you think the defendant might have a $100,000 policy, you won’t take the $30,000 offer, and you will sue. In short, they claim uncertainty leads to lawsuits.
Insurance carriers and privacy experts have a different view of the bill. The carriers say the amount of insurance should not change the value of the injury. The industry fears people would demand higher settlements if they knew more insurance was available. Privacy advocates worry that personal financial information involving the amount of insurance you have on your business, car, home, or profession ought to remain personal. They fear that there is insufficient protection of your personal financial information. First, the insurance company does not have to notify you before it is sent out, and second, the fact that you deny causing the accident does not keep the plaintiff from getting your personal insurance information.
So back to the original question. Are you comfortable telling that contractor how much your make before she gives you a bid? If you didn’t have much money, perhaps it could help you. If you are well off, perhaps it would inflate the cost.
Is it any different with your insurance information?
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