When a lawsuit is settled, sometimes the money owed to plaintiffs is paid out by insurance companies. It’s why, for example, doctors have medical malpractice insurance.
There is currently a bill called the Comprehensive Insurance Disclosure Act, A.8041 (Lunsford) / S.7052 (GOUNARDES), sitting on Gov. Andrew Cuomo's desk that would mandate that all insurance policies be disclosed to plaintiffs before the start of a trial.
The bill language states: "Enacts the comprehensive insurance disclosure act to require that all parties provide notice and proof of the existence and contents of any insurance agreement, including coverage amounts, under which any person or entity may be liable to satisfy part or all of a judgment within sixty days of serving an answer in an action."
Tom Stebbins, executive director of the Lawsuit Reform Alliance of New York, recently sent a letter to the governor asking him to veto the bill.
“Lawsuits should be based on liability, not on how much insurance is available,” Stebbins told Capital Tonight.
He discussed the issue further with show host Susan Arbetter.