The Office of Financial Management has released a brief assessment of the fiscal impact of Referendum 67. R-67 was put on the ballot in an effort to overturn SB 5726, deceptive dubbed the Insurance Fair Conduct Act. We've talked and written (also here) about R-67 before and will again. SB 5726 will drive up insurance costs and clog the court system.
OFM recognizes the consequences. Among them:
- There would likely be an increase in the number of cases filed in Superior Court related to the denial of insurance claims...
- Premiums for state and local governments that purchase auto, property, liability or other insurance may increase due to a potentialincrease in insurance companies’ litigation costs and the amounts awarded to claimants....
- It is estimated that 300 notices per year of insurance-related lawsuits would be filed with the Office of the Insurance Commissioner ...
