Friday, March 26, 2010

Rounds licks insurance companies' boots.

Governor Rounds vetoed SB169, which would have done the right thing. Big surprise, eh?

You're insured, right? Someone smacks your car and hurts you badly. Their insurance company stalls settling with you. You paid your insurance company for coverage for such an eventuality, and your company pays for the damage to your car and some of your medical bills.

You go to trial and win a large damage award, but the other guy wasn't insured adequately to cover your medical costs. Nonetheless, your insurance company takes all the money recovered. Under current So. Dak. law, they can do that. Meanwhile, you are being sued by the hospital for medical costs.

SB169 would have made it so you are made whole before your insurance company can recover the money they paid, coverage you paid them extra to have (uninsured/underinsured motorist coverage) for yourself. Most states make insurance companies in their states operate that way.

Rounds thought that insurance companies that have already been paid for a loss should have the opportunity to recover twice while you lose work, income and health.

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