Thursday, July 24, 2008

Insurance Company Rules: The Real Reason Why Insurance Companies Win

The other day, I wrote about how the Ohio Supreme Court has allowed insurance companies to confiscate every penny of an injured person's auto settlement (known as "subrogation"). And then I discovered this video. It essentially shows in video form what I tried to explain in my last post about the absurdity and unfairness of current Ohio subrogation laws (and is much more effective and funny I might add).

Enjoy. This playful poke aside, if you think these ridiculous rules are limited to Ohio, go to to read Linda Shank's fight with Wal Mart. They battled her case all the way to The U.S. Supreme Court and won the legal right to take every penny of her $417,000 recovery after a collision with a large truck that left her permanently brain damaged (Wal Mart paid $470,000 of her bills and had a fine print subrogation clause that gave them the right to take every penny of her settlement as reimbursement).

Once the media discovered the story and skewered Wal Mart over its position, Wal Mart relented and dropped their reimbursement claim. BUT THE REAL STORY HERE IS THAT WAL MART HAD THE RIGHT UNDER FEDERAL LAW AND U.S. SUPREME COURT DECISIONS TO CONFISCATE EVERY PENNY OF MRS SHANK'S SETTLEMENT!

Congress (on a federal level) or The Ohio Legislature (on a state level) could change this oppressive and unfair law in a New York minute. Can you figure out why this hasn't happened yet? It tells you the influence of insurance companies in this country, and particularly in Ohio............

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