Minnesota: Setback for Trial Bar

According to NAMIC and its Minnesota state trade partners, the Insurance Federation of Minnesota and the Minnesota Association of Farm Mutual Insurance Companies, the trial bar suffered a setback last Tuesday when Sen. Linda Scheid convinced the Senate to amend S.F. 2822, the Trial Lawyers Bad Faith bill. The amendment, which drew bipartisan support on the floor, eliminated the most harmful parts of the original bill and replaced them with a more balanced approach to the issue of claims.

Joe Thesing, NAMIC's director of state affairs, attributes the success of the amendment both to Scheid’s reputation within the Senate as a "thoughtful moderate legislator" and to the grassroots campaign that NAMIC and its allies implemented through Action Alerts.

“Generally, when legislators receive even a handful of calls and messages from their constituents, it focuses their attention on the matter," said Thesing. "In this case, our members successfully convinced their senators to give a closer look at the negative consequences of the Trial Lawyers Bad Faith bill.”

The bill has moved on to the House of Representatives where it is expected to encounter an attempt by the trial bar forces to force its language back into the bill.

“We and our allies need to remain vigilant,” said Mark Johnston, NAMIC's state affairs manager. “If the bill passes the House with an amendment, it will go to a conference committee, which could draft a version with detrimental language. It is likely that our grassroots will be called upon again.”

On Thursday, a consortium of insurance trade associations, including NAMIC, distributed a joint news release on the Senate vote.

At this time there is no information on how quickly the House will act.

Direct questions to NAMIC's Director – State Affairs Joe Thesing or State Affairs Manager Mark Johnston.

Posted: Tuesday, March 25, 2008 12:00:00 AM. Modified: Wednesday, March 26, 2008 10:31:26 AM.

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