Insurance Law Commons^™

Equivalent Frames Of Reference For Judging Risk Regulation Policies, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

Although the design of risk regulations has not yet attained what might be termed the economist's ideal of maximizing the difference between benefits and costs, substantial progress has been made in the design of regulatory policy. When the risk regulation agencies began their efforts in the early 1970s, there was widespread concern that something needed to be done to address the important risks that society faces. The substantial optimism with respect to our technological capabilities in reducing risk may have led to a failure to recognize the limits of our risk regulation ventures. Over time, there has been increasing emphasis …

The "Sudden And Accidental" Exception To The Pollution Exclusion Clause In Comprehensive General Liability Insurance Policies: The Gordian Knot Of Environmental Liability, Sharon M. Murphy

Vanderbilt Law Review

From 1973 to 1985, comprehensive general liability (CGL) insur- ance policies contained a pollution exclusion clause.' The plethora of litigation spawned by this clause, however, has done little to clarify either its meaning or its relationship to the policy as a whole.' Uncertainty regarding the scope of liability coverage under this clause drives many of the hazardous waste and toxic tort lawsuits filed. Courts have interpreted the pollution exclusion clause variously, often admitting that the law in this area is a confusing array of policy arguments and conflicting drafting histories. Part II of this Note sets forth the historical framework …

The Dimensions Of The Product Liability Crisis, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

Examination of a variety of sources of statistics indicates that the product liability crisis is real, and it is not simply imagined or contrived by the insurance industry. Litigation in the product liability area has escalated dramatically, but to some extent the industry was able to mute the effect of this escalation because of the influence of rising interest rates in the early 1980s as well as because the shrinking market for product liability insurance masked much of the explosion that was occurring in terms of the costs of product liability coverage. The dominant pattern in the early 1980s was …

The Performance Of Liability Insurance In States With Different Products-Liability Statutes, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

The liability crisis of the mid-1980s has led to an extensive reexamination of the liability system. A number of explanations have been offered for the substantial increase in insurance premiums and, in some cases, a decline in the availability of insurance. These include stimulation of the underwriting cycle by a decline in interest rates, collusion among insurance firms, rising tort costs, and uncertainty with respect to the liability burden.' Most observers, however, also point to changes in tort law itself. For example, plaintiffs may now have a more favorable environment for obtaining an award and, if they are successful, they …

Defining The Contours Of Erisa Preemption Of State Insurance Regulation: Making Employee Benefit Plan Regulation An Exclusively Federal Concern, Lawrence A. Vranka, Jr.

Vanderbilt Law Review

Congress enacted the Employee Retirement Income Security Act (ERISA) in 19741 to address problems in the area of employee pensions and benefits, with which prior federal enactments and complementary state regulation had been unable to cope. ERISA established a comprehensive scheme that placed the regulation of qualified employee benefit plans exclusively in federal hands.' The drafters of ERISA also sought to reserve to the states the power to regulate areas in which they traditionally had primacy--most notably, insurance, banking, and securities. The drafters of ERISA thus attempted to carve out an area of "exclusive federal concern," while preserving state regulation …

The Myth Of The Liability Insurance Claims Explosion: An Empirical Rebuttal, David J. Nye, Donald G. Gifford

Vanderbilt Law Review

A perceived crisis in the nation's liability insurance system erupted in 1986. Some businesses saw their insurance premiums double in a period of two years, and others found the coverages they required to-tally unavailable. While trial lawyers and consumer groups asserted that insurance company investment and pricing practices, as well as huge profits, had caused the crisis, others alleged that an increased"claims consciousness" among the American public had spawned the liability insurance affordability and availability problems. Richard Berman, a national representative of the United States Chamber of Commerce, proclaimed that the judicial system had "gone berserk" and that litigation was …

Insurance In The People's Republic Of China: Laws And Practice, Henry R. Zheng

Vanderbilt Journal of Transnational Law

The insurance industry in the People's Republic of China (PRC) has expanded rapidly during the past several years. Since the end of 1979 when domestic insurance was reestablished, the income generated from insurance business has been increasing at a rate of over forty-four percent annually.' By early 1987, over 500,000 enterprises and business entities utilized property insurance and about 34 million people purchased personal insurance; during the first half of 1986 the total insurance earnings from the People's Insurance Company of China alone reached a record high of over 2.33 billion yuan. In the meantime, the insurance business has become …

The Determinants Of The Disposition Of Product Liability Claims And Compensation For Bodily Injury, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

The frequency and severity of products liability lawsuits have become a matter of increasing importance and concern to the public at large and to American business in particular. The number of product liability cases filed each year escalated dramatically in the 1970s both in absolute terms and as a fraction of all civil cases.' The economic incentives for safety created by these product liability claims no longer are a minor concern but are now a fundamental influence on the economic environment of the firm. In recent years many larger firms have established corporate product safety offices to integrate these product …

Case Digest, Law Review Staff

Vanderbilt Journal of Transnational Law

RELIGIOUS ORGANIZATIONS AND MEMBERS OF CLERGY OF VARIOUS DENOMINATIONS LACK STANDING TO CHALLENGE ADOPTION AND IMPLEMENTATION OF DIPLOMATIC RELATIONS WITH THE VATICAN

--Americans United for Separation of Church and State v. Reagan, 786 F.2d 194 (3d Cir.1986)

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EVEN THOUGH PROCEEDINGS IN THE FOREIGN FORUM MAY TAKE MORE TIME AND MAY YIELD A SMALLER RECOVERY THAN PROCEEDING IN THE UNITED STATES FORUM, THE FOREIGN FORUM MAY BE CONSIDERED AN ADEQUATE FORUM FOR THE PURPOSES OF THE FORRUM NON CONVENIENS DOCTRINE

--De Melo v. Lederle Laboratories, 801 F.2d 1058 (8th Cir. 1986)

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ASSERTION OF PERSONAL JURISDICTION IN CALIFORNIA OVER AN …

Case Digest, Law Review Stafrf

Vanderbilt Journal of Transnational Law

Pursuant to the United States-France Estate Tax Treaty, the estate of a United States citizen who was domiciled in France is liable to the United States for taxes on real property located in France at rates effective when the citizen died provided the estate receives credit for the estate taxes paid to France

Norstar Bank of Upstate New York v. United States,644 F. Supp. 1112 (N.D.N.Y. 1986).

Political Question

Doctrine bars judicial consideration of claims that the United States mines placed in the Nicaraguan harbor of Corinto damaged a Norwegian ship. Krig-sforsikring for Skib, gjensidingforening (The Norwegian War Risk Insurance …

Are Individuals Bayesian Decision Makers?, W. Kip Viscusi

Vanderbilt Law School Faculty Publications

There has been increasing interest in whether normative models of individual choice under uncertainty accord with actual behavior. These concerns have been much greater than in other economic contexts because of the particularly severe demands such decisions place on the rationality of the decision maker. The limitations of these decisions have widespread consequences, as they provide the rationale for many governmental efforts to regulate the risks people face. Here I explore the issues raised by a Bayesian decision framework, focusing particularly on my analyses of worker and consumer behavior.

Venezuela Revisited: Foreign Investment, Technology, And Related Issues, Robert J. Radway, Franklin T. Hoet-Linares

Vanderbilt Journal of Transnational Law

A brief history of foreign investment in Venezuela is necessary to understand recent changes in Venezuelan foreign investment policy. The development of selected industrial sectors, including principally petroleum and mining, but also agriculture, electric power, manufacturing, banking, and insurance, has played a significant role in shaping Venezuelan foreign investment policy. The laws, policies, and their application can then be reviewed in practical terms to provide the practitioner with an understanding of the stated objectives of the host government within the context of Third World movements toward greater control over economic activities.

The Troublesome Workings Of The Judgments Convention Of The European Economic Community, Errol P. Mendes

Vanderbilt Journal of Transnational Law

The problems involved in the jurisdiction by consent provisions in article seventeen and the special rules for insurance claims in articles seven through fifteen have to some extent been dealt with by the provisions of the Judgments Accession Convention as have the problems arising under the hire purchase and credit sale transactions. Nevertheless, a comprehensive definition of the term "consumer sale" is needed from the European Court.

There can be little doubt that both lawyers and litigants who are affected by the Convention, would prefer to operate under the conflict of laws rules of their own nations which, although complex, …

The Mccarran-Ferguson Act: A Time For Procompetitive Reform, Laurence M. Hamric

Vanderbilt Law Review

State insurance regulation may be broadly divided into two categories. The first generally encompasses those laws that are directed toward protecting the insurance fund so that a policy holder can be secure in his reliance on his insurer's ability to pay its obligations. An assumption underlying this Note is that such regulation, despite its imperfection and effect on competition, is both socially and economically desirable. Thus the problems with state regulation aimed at ensuring the financial reliability and solvency of insurance companies" will not be considered here. Rather, this section of the Note will outline the second category of state …

Recent Decisions, Anne Markey, James F. Maddox, Thomas C. Eklund, Thomas F. Taylor, Ralph Vinciguerra, Clark Mervis

Vanderbilt Journal of Transnational Law

Admiralty--Damages in a Maritime Collision or Stranding Caused by Mutual Fault Must be Apportioned According to the Comparative Negligence of the Parties

Anne Markey

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Admiralty--Wrongful Death--General Maritime Law Provides Remedy for Pain and Suffering of Decedent Incurred in Wrongful Death on High Seas but not for Funeral Expenses

James F. Maddox

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Arbitration--Securities Regulation--In International Sale of Securities, Arbitration Agreement is Binding not Withstanding Non-Waiverability of Judicial Remedy of Securities Exchange Act of 1934

Thomas C. Eklund

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IMMIGRATION--ALIEN COMMUTERS, BOTH DAILY AND SEASONAL, WHO HAVE ONCE OBTAINED THE STATUS OF IMMIGRANTS ARE PROPERLY CLASSIFIED AS SPECIAL IMMIGRANTS LAWFULLY …

Insurance -- 1954 Tennessee Survey, Robert W. Sturdivant

Vanderbilt Law Review

There were only two cases reported during the survey period on the subject of liability insurance. In the first of these, Rural Education Ass'n, Inc. v. American Fire & Casualty Co., the insured had notice of an accident on the day it occurred. Suit for injuries growing out of the accident was filed nearly seven months later, and not until the day after suit was filed did the insured notify the insurer of the accident. After judgment was obtained against it, the insured brought the present suit against its insurer. The insurance policy required that notice be given "as soon …

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

1. ACT OF STATE ACT OF STATE

Doctrine precludes Payment of Insurance Policy's Cash Surrender Value in Contravention of the Law of the Nation Governing the Contract

2. ADMINISTRATIVE LAW

Secretary of the Interior may suspend Gas and Oil Leases to Conserve Maritime Natural Resources

3. ADMIRALTY

Libel in Rem against Vessel demise Chartered to the United States is not within Court's Jurisdiction under Suits in Admiralty Act when Ship is Outside United States Territorial Waters

Status as Crew Member of and a Relatively Permanent Connection with a Floating Structure required for Recovery Under the Jones Act

Employer may not …

Policy Issues In Primary Industries, Zuhayr Mikdashi

Vanderbilt Journal of Transnational Law

Business and government have espoused a variety of policies to exploit market forces to their advantage. This article explores the policies involved with important issues affecting relationships among protagonists in primary industries and offers some suggestions. The first section deals with "freeing" the supply of key information not normally accessible to less developed countries(LDC's). Sections two and three relate to two aspects of international trade: easing hardships resulting from interruptions in re-source flows; and redistributing gain from resource industries among trading countries. The final two sections of the article deal with development financing, and with the accommodation of foreign investments …

A Survey Of Financial Responsibility Laws And Compensation Of Traffic Victims: A Proposal For Reform, Lorence L. Timm

Vanderbilt Law Review

One of the most acute socio-economic and legal problems confronting society today concerns the compensation of traffic victims. In 1966, there were 52,500 persons killed as a result of traffic accidents,'which constituted nearly one-half of all accident fatalities. In addition, 868,000 persons were injured, and the total cost of motor vehicle accidents was estimated at ten billion dollars. As a result of the steadily rising accident toll, there has been increased concern over means of insuring that victims of automobile accidents will be compensated. This concern has been aggravated by the continued presence of the financially irresponsible motorist. The problem …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Conflict of Laws--Mexican Bilateral Divorce Decree Recognized Even Though Neither Party was a Mexican Domiciliary At Time of Divorce

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Constitutional Law--Section 504 of LMRDA a Bill of Attainder

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Corporations--DeFacto Merger--Dissenters' Rights--Construction of Merger and Amendment Statutes

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Criminal Law--Search and Seizure--Standing Granted for Dyer Act Prosecutions Without Allegation of Possession

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Damages--Restitutionary Relief for Breach of Contract Granted Under the Tucker Act to a Government Contractor

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Federal Employers' Liability Act--Applicability of "In Whole or in Part" Rule of Proximate Cause to Employer's Efforts To Prove Contributory Negligence Plaintiff brought suit under the Federal Employers' Liability Act'

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Evidence -- 1964 Tennessee Survey, Lyman R. Patterson

Vanderbilt Law Review

The difficulty in dealing with presumptions arises in part from the fact that the term embraces a host of different meanings, varying with the purposes underlying the presumption in a given situation. Unfortunately, the courts seldom articulate the meaning which they are attributing to the term and consequently do little to clear up the confusion... In Arnett v. Fuston, a negligence action, plaintiff argued that a verdict of not guilty against one of the two co-defendants was not supported by any evidence, and that a presumption should apply against him "for his election to stand on his motion for directed …

Insurance -- 1964 Tennessee Survey, Robert N. Covington

Vanderbilt Law Review

In Phoenix Ins. Co. v. Brown,' the named insured in a fire policy was Walter Brown. Walter had at one time owned the property insured. He had, however, conveyed it to his divorced wife Elsie, for whom he "was looking after the property," prior to the taking out of this policy. It was not alleged that the defendant's agent (who had previously written other policies on the property in Walter's name at the time Walter was the title-holder) knew of the conveyance to Elsie. After total destruction by fire the defendant refused to pay on the grounds of the lack …

The Divisibility Of Warranties In Insurance Policies, Jerald H. Sklar

Vanderbilt Law Review

The doctrine of substantial compliance, and other rules of construction such as the rule calling for an interpretation of warranties as being promissory rather than continuing, are familiar and frequently applied. When applied in favor of the insured, the usual result is to find that the insured has not breached the warranty. This note deals with a less frequently employed tool of beneficent interpretation and one whose thrust is different, the divisibility of warranties. The doctrine of divisibility does not result in a finding of "no breach"; instead it admits the breach, but deems it immaterial because it is not …

Creditors' Rights And Security Transactions -- 1963 Tennessee Survey, Forrest W. Lacey

Vanderbilt Law Review

Mechanics Liens

Hammer-Johnson Supply, Inc. v. Curtis,' presented a new aspect of the recurring question of the duty of a supplier of materials to apply payments from a known source to the debt incurred for that source.

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Assets Available to Creditors

In re Jennings' presented the question of whether the proceeds from a medical payment clause of a liability insurance policy are free from the claim of creditors.

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Miscellaneous

In Murdock Acceptance Corp. v. Jones, a deed of trust was executed by Jones and his wife to secure payment of "$5000.00, together with any and all other indebtedness …

Insurance -- 1963 Tennessee Survey, Robert N. Covington

Vanderbilt Law Review

1. Definition of "Temporary Substitute Automobile." Defendant issued a public liability policy covering insured's use of a described vehicle (a 1955 Ford) as a taxicab. The policy contained a standard temporary substitute automobile clause, covering a non-owned auto-mobile "while temporarily used as a substitute for the described automobile when withdrawn from normal use because of its break-down, repair, servicing, loss or destruction."

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2. Application of Automobile Policy Liability Limits. A husband and wife (hereinafter H and W) were injured in an accident caused by the insured. In their actions against the insured W was awarded 4,500 dollars and H …

The Financing Of Benefits In Unemployment Insurance, Ernest J. Eberling

Vanderbilt Law Review

The current federal-state unemployment insurance system has been in operation throughout the country for over a quarter of a century. As one of the two major social insurance programs created by the Social Security Act of 1935, it has become generally accepted as one of the nation's most important measures against the privation of unemployment and as a stabilizer of the economy in helping offset the down drag on economic activity resulting from excessive joblessness. Despite its general acceptance, however, it has been subjected to vigorous controversy in recent years. Criticism of the program has focused largely upon two issues, …

Corporations Insuring Employees' Lives, E. Ralph Cotham, Iv

Vanderbilt Law Review

The Sixth Circuit Court of Appeals' in 1959 reversed a tax court holding that a life insurance contract taken out by a corporation to insure an employee's life was a wagering contract because neither the corporation nor the beneficiary possessed an insurable interest in the employee's life and that the proceeds were thus not excludible as an amount received "under a life insurance contract." In 1964 the Fifth Circuit Court of Appeals affirmed a federal district court's judgment entered on a jury's verdict that a corporation, which was both owner and the beneficiary of a life insurance policy, had no …

Third-Party Liability And Adjustments Between Different Employers And Insurance Carriers In Tennessee, William J. Harbison

Vanderbilt Law Review

In this article the author discusses the Tennessee law as to the relative positions of employers and third party tort feasors in workmen's compensation situations. After discussing the employer's right to subrogation to his employee's right of action, the employer's right to a lien on any recovery in such an action, and the right of the third party to indemnity from the employer, he concludes by treating the problem of joint and successive employers, taking special note of the heretofore untapped resources of the Tennessee Second Injury Fund.

Insurance -- 1962 Tennessee Survey, Robert N. Covington

Vanderbilt Law Review

The courts of Tennessee were confronted by a number of interesting problems of insurance law during 1962. For the most part, the results were neither startling nor unsettling. There were, however, decisions that seem to qualify previous opinions, sometimes without citation, and there was one very troublesome opinion concerning credit life insurance.

Recent Case Comments, Law Review Staff

Vanderbilt Law Review

Conflict of Laws--Workmen's Compensation--Forum's Use of Foreign State's Tort Law for Recovery Against Third Party Does Not Require Forum's Use of Foreign State's Election Provision in Workmen's Compensation Suit

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Constitutional Law--Advertising-Statute Restricting Size,Number, and Location of Gasoline Price Signs Is Unconstitutional

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Evidence-Attorney--Client Privilege--Applicability When a Corporation Is the Client

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Evidence--Attorney-Client Privilege-Doctor's Report to Attorney on Condition of Client Is Within Privilege

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Federal Jurisdiction--In Federal Question Action Federal Court Is Competent To Exercise In Personam Jurisdiction Over Corporation if It Has Sufficient Contacts With United States

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Federal Rules of Civil Procedure--Counterclaim Not Compulsory in First Suit …