House Bill 1111 – Rep. Tincher:
Negligence actions and insurers. Provides that, in an action for damages based on negligence, an insurer shall be made a party defendant if: (1) the action is brought by a plaintiff in Indiana and based on a claim against the insured; and (2) the insurer has an interest in the outcome of the action that is adverse to the plaintiff or any other party in the action or, by its policy of insurance, assumes or reserves certain rights or agrees to take certain actions. Specifies that, if a policy of insurance is issued or delivered by an insurer outside Indiana, the insurer shall be made a party defendant only if the damage allegedly caused by negligence occurred in Indiana. Provides that, in an action for damages based on negligence, the court shall allow the admission into evidence of the fact that the wrongdoer is covered by liability insurance.
Isn’t an insurer almost always going to have an interest adverse to that of the Plaintiff? In 99% of the cases, the Plaintiff is suing the insured, wanting the insurer to pay some money under the policy. The bill also allows admission into evidence the fact that the Defendant has an insurance policy. This is a fairly significant deviation from current case law which prohibits admission of the fact of insurance. There is a sense that such evidence is prejudicial to a defendant in that a jury is presumed to be more willing to take money from an insurer than from an individual. On the other hand, jurors live in the real world and probably assume that a driver most likely has insurance.
[tags]HB1111-2007, courts[/tags]