Simple solution to the insurance crisis

There is a simple solution to the insurance crisis facing California residents.

Insurers want tort reforms limiting the amount of punitive damages awarded verses general and compensatory damages brought against insurers.

This requires the state legislators and the governor to insist on tort reforms as to punitive damages. The enormous awards in lawsuits at the expense of the insures to enrich the coffers of attorneys representing clients is bankrupting insurers.

This is especially true in property and casualty insurance claims. Insurers will not return to states that fail to realize the enormity of egregious awards in lawsuits.

Claims losses averaged 110 percent for most insurers with the exception of Progressive insurance companies which operated at only a 1.5 percent profit.

You can not stay viable taking in a dollar and paying out a $1.10 in claims. Simple mathematics.

The citizens are suffering because of the failure of the legislative branch and the lobbyists for the attorneys who make a living off egregious lawsuit awards.

Until this happens, insurers will continue to flee the market place.

Lastly, environmentalist must understand sound forest management principles and realize the lumber industry helps to protect the renewal resource they farmed by clear cuts and replanting trees within forests that (they) harvested. Just look at lumber prices after running lumber industry into the ground.

I have spent 38 years helping clients in insurance needs and spent 10 years as a pre-licensing instructor for those seeking to get an insurance license.

My father-in-law Raymond I aka “Pappy” Smith was the founder of the former Harolds Club in Reno, Nevada. Honesty (and) common sense seem elusive with some of those in charge of helping their constituents.

Just a voice in the wilderness.

Rex Williams, Reno, Nevada