The Crain's Insider

TUESDAY, AUGUST 12, 1997

INSURANCE BILL

In the waning hours of the legislative session, Senate Majority Leader Joseph Bruno killed an insurance bill pushed by consumer advocates and trial lawyers, and opposed by the insurance industry. The measure would have allowed policyholders to collect damages and court costs if they successfully sued insurance companies for unjustly denying their claims. Just days before the session ended, the Senate came up with a watered-down version that would have given $500,000 to the state insurance Department to investigate arbitrary insurance practices. The second bill passed the Senate, but not the Assembly. Consumer advocates charge that Mr. Bruno was protecting the insurance industry, which gives him major campaign contributions. Mr. Bruno contends that the original bill would have driven up insurance premiums.

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