Unlike Keeton-O’Connell, Hart-Magnuson will not feed on the victim’s collateral resources to cut back the cost of insurance, This proposal allows the victim to keep all benefits from|advantages auto insurance quotes of|advantages from other sources, except those produced from public assistance. In this way, the motorist is allowed flexibility for making his automobile coverage compatible with other kinds of duplicate protection, By tailoring the entire insurance program, a cost-saving is achieved. The exclusion of double payments where public funds are obtained is an attempt to blend national medical health insurance, if it is passed, with national no-fault auto insurance.
Again differing from most no-fault plans, Hart-Magnuson will not depend on arbitration as a replacement for that courts. auto insurance There are many times when the right to bring suit, particularly in which the insured purchases the pain-and- suffering option, could be exercised.
In the plan, there is a curious twist for the payment of legal fees. When the dispute is finished compulsory no-fault coverage, the insurer pays its insured’s lawyer whether or not the company wins, unless the suit is fraudulent or not brought in good faith. The plan ignores the overworked no-fault argument that elimination of court congestion is a legitimate basis for abolishing basic rights. Certainly does maintain the courthouse door available to accident victims who can pay the optional coverages or running afoul of the insurance provider.
The Hart-Magnuson plan calls for federal no-fault automobile insurance. It refuses to stick to the Department of Transportation’s guideline that all state develop its own system of no-fault insurance, as long as it is generally compatible with common no-fault objectives. Hart-Magnuson believes how the states cannot or is not going to search for a true no- fault plan.
Throughout its history, the automobile insurance industry has successfully resisted federally imposed standards. Due to the DOT report and Hart-Magnuson, the states could find the firms, under the threat of national regulation, coming forward with innovative suggestions of their very own. But if the Hart-Magnuson way of reform be¬come law, the government will regulate car insurance for the first time. And also on the Washington horizon is an all-encompassing federal system of medical health insurance regulated and controlled by the government.
The Nixon Administration has gone on record as favoring the idea of no-fault insurance. Department of Transportation Secretary John Volpe has openly embraced the formula for automobile insurance reform drawn up by Keeton-O’Connell. To date, the administration has backed the DOT endorsement of the gradual changeover to no-fault by the individual states. DOT guidelines notwithstanding, it’s probable that many years will pass before each state adopts a no-fault approach that satisfies the federal government. Several states that have converted to partial no-fault packages-including Oregon, Delaware, Illinois, and South Dakota-have done this with plans that are unrelated to people suggested from the department. The maximum strength from the department’s approach is its resolve for gradualness. This will give rival reforms, such as that proposed for Maryland, an opportunity to take on radical no-fault.
In view of state-by-state reform, it’s unlikely that sufficient support will appear in Congress for your passage of the Hart-Magnuson federal plan. It faces the combined opposition from the administration, the insurance coverage industry, the American Trial Lawyers Association, and the advocates of other types of reform. But failure with the states to plot a winning game plan for automobile insurance reform would go far to generate the weather for congressional action on the nationwide plan.