Petition seeks insurance reduction

Monday, April 19, 2004 | 9:38 a.m.

CARSON CITY -- A small group identifying itself as People for a Better Nevada plan to file an initiative petition today to require that insurance companies roll back auto premiums by 20 percent.

The group also filed an initiative petition that would roll back limits on medical malpractice lawsuits and punish lawyers who filed frivolous suits.

"We're starting small but we've been getting a lot of calls," Carmen Cashman, a spokeswoman for the group based in Las Vegas, said.

The group will have to gather 51,244 signatures of registered voters on both petitions by June 15. In addition, 10 percent of the registered voters in 13 of the 17 counties must sign the petition.

If successful the initiatives would appear on the November election ballot and then must be approved again in the 2006 election before they would amend the Nevada Constitution.

"We're tired of the insurance companies taking and not giving back," Cashman said.

"Not only do we want insurance companies to roll back their rates by 20 percent, we want them to reward good drivers with an additional 20 percent rate reduction.

"We know this will work because California passed a similar measure that resulted in a decrease in insurance rates."

The second initiative is called "Stop Frivolous Lawsuits and Protect Your Legal Rights."

The initiative would make lawyers who pursue a lawsuit found to be frivolous would be liable for court costs, attorney fees and other expenses.

It also would repeal any limitation on damages that the Legislature enacted. In 2001 the Legislature capped medical malpractice lawsuits at $350,000 per incident.

"This initiative protects the right of an individual to hire and pay an attorney without any interference from the government," Cashman said.

"Having said that, it's imperative we punish lawyers who knowingly and willfully file frivolous lawsuits," she said. "That's flat-out wrong."

The petition also would require corporations to fully compensate victims who suffer serious injury or death as a result of wrongful conduct.