Insurance changes coming to Ohio thanks to new law
Ohio lawmakers have approved a new budget that will bring major changes to the state’s insurance law. The change reduces the amount of money that insurance companies will receive from injury cases in which consumers are found at fault and cannot pay the full amount they owe. The change to the law has received significant support from lawmakers, with supporters suggesting that some companies in the insurance industry could be exploiting the old law for financial gain.
Insurance companies will receive less money from
The change to the state’s insurance law will take effect in the fall. Supporters of the change claim that it will prevent the insurance industry from acquiring the majority of money awarded in an injury case for themselves. In the past, consumers involved in injury cases were often left with very limited funds from whatever they were rewarded. This placed some people under inordinate financial strain. The change to the law may resolve this problem and provide extra protection to consumers involved in injury cases.
Change to insurance law may result in higher premiums for consumers
Opponents of the measure claim that situations in which consumers involved in injury cases lose money are rare. They suggest that the measure benefits trial attorneys more than consumers and it may cause the insurance industry to raise rates on the coverage it provides. Insurers often raise rates in order to recover from the financial losses that they experience and the change to the state’s insurance law may lead to an increase in insurance premiums. It is impossible to say how high premiums will grow, however.
Impact on the insurance industry is not yet known
Time will tell whether or not the change to the law will have a dramatic impact on the insurance industry. State lawmakers have expressed some concern for the changes coming to the law, but they are also worried that the insurance industry may be exploiting consumers in dire need of financial aid. No insurer has been found to be at fault of this, of course, but the state it working to ensure that consumers are not placed at undue risk.