June 12, 2006 

PROVISION PUTS INJURED VICTIMS’ RIGHTS AT RISK

House Republicans inserted a provision into the Pension Reform Bill (HR 2830) at the eleventh hour that would rewrite most states’ insurance laws.  This provision would preempt state laws by allowing insurance companies to collect reimbursement from injured victims before the victims themselves get paid.  As a conferee on the Pension Reform Bill, I will fight to ensure this harmful provision is taken out of the final pension bill.

Currently, when an injured victim settles a lawsuit, most state laws require the victim to recoup all losses before their insurance company can receive any reimbursement.  The House provision would preempt state law and put insurance companies first in line for repayment.  For instance, in a case of catastrophic injury, this provision would rob an injured person of the ability to pay for future medical care. 

I will continue to fight to remove this troubling measure, which would do an immense amount of harm to injured victims, from the final pension bill. 

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