no-fault insurance


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no-fault insurance,

type of indemnity plan, usually applied to automobile coverage, in which those injured in an accident receive direct payment from the company with which they themselves are insured. Originated (1947) in Saskatchewan, Canada, no-fault insurance eliminates the need for accident victims to establish another's liability, or fault, through a civil lawsuit. Lawyers' groups oppose no-fault, saying that it limits the citizen's right to sue. Supporters say that it leads to quicker settlement of accident claims and lower premium rates than the traditional tort liability system because it reduces legal fees and court costs. The first comprehensive no-fault plan in the United States was adopted (1971) in Massachusetts. Currently 13 states have no-fault auto insurance laws that in some way restrict the right of parties to file legal suits. Provisions defining when a person can sue in no-fault states vary, but motorists can generally sue for severe injuries. Recently, however, rising insurance costs have led some states to reexamine the effectiveness of no-fault insurance laws.
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7) No-fault insurance may be rejected by motorists in the "choice" states of Kentucky, Pennsylvania, and New Jersey.
No-fault insurance has been voted down in the past and its future looks bleak.
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professor of law at the University of Virginia, Charlottesville, who described his Early Offers reform plan as a type of no-fault insurance.
Colorado's no-fault insurance law has undergone 10 major revisions since 1974.
This is precisely what many states had in mind when they adopted no-fault insurance legislation in the 1970s.
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The other, Pay-at-the-Pump No-Fault Insurance (PPN for short), is now being pushed by a guerilla band of consumer advocates in California.
reform auto insurance continue, the pay-at-the-pump concept - whereby consumers would no longer pay for basic no-fault insurance but instead would be assessed a tax on gasoline - may gain momentum.