United States. Congress. House. Committee on Inter.

No-fault motor vehicle insurance. Hearings, Ninety-second Congress, first session .. (Volume pt. 3) online

. (page 1 of 52)
Online LibraryUnited States. Congress. House. Committee on InterNo-fault motor vehicle insurance. Hearings, Ninety-second Congress, first session .. (Volume pt. 3) → online text (page 1 of 52)
Font size
QR-code for this ebook


Parts

NO-FAULT MOTOR VEHICLE INSURANCE



HEARINGS

' BEFORE THE

.SUBCOMMITTEE ON COMMERCE AND FINANCE

OF THE

COMMITTEE ON
-INTERSTATE AND FOREIGN COMMERCE

HOUSE OF REPRESENTATIYE8

^ NINETY-SECOND CONGRESS

FIRST SESSION
ON

H. Con. Res. 241

EXPRESSING THE SENSE OF CONGRESS WITH RESPECT TO

MOTOR VEHICLE INSI RANGE AND AN ACCIDENT

COMPENSATION SYSTEM

, H.R. 4994, H.R. 6528, H.R. 4995, H.R. 7514
': H.R. 3968 (and identical bills),

and H.R. 3970 (and identical bills)

BILLS RELATING TO NO-FAT^LT MOTOR VEHICLE INSURANCE



APRIL 20, 21, 22. 26, 27, 28, 29, AND 30, 1971



Serial No. 92-27



Printed for the use of the
Committee on Interstate and Foreign Commerce




TJORTHEASTERN UNIVERSITY



SCHOOL |)t LAW LIBRARY



Parts
NO-FAULT MOTOR VEHICLE INSURANCE



HEARINGS

BEFORE THE

SUBCOMMITTEE ON COMMERCE AND FINANCE

OF THE

COMMITTEE ON
INTERSTATE AND FOREIGN COMMERCE

HOUSE OF REPRESENTATIVES

NINETY-SECOND CONGRESS

FIRST SESSION
ON

H. Con. Res. 241

EXPRESSING THE SENSE OF CONGRESS WITH RESPECT TO

MOTOR VEHICLE INSURANCE AND AN ACCIDENT

COMPENSATION SYSTEM

H.R. 4994, H.R 6528, H.R. 4995, H.R. 7514

H.R. 3968 (and identical bills),

and H.R. 3970 (and identical bills)

BILLS RELATING TO NO-FAULT MOTOR VEHICLE INSURANCE



APRIL 20, 21, 22. 26, 27, 28. 29, AND 30, 1971



Serial No. 92-27



Printed for the use of the
Committee on Interstate and Foreign Commerce




U.S. GOVERNMENT PRINTING OFFICE
63-002 O WASHINGTON : 1971



For sale by the Superintendent of Documents, U.S. Government Printing Office,

Washington. D.C., 20402 - Price $2

Stock Number 5270-1147



l\inPTUrACTrnM 11...



i/ <=<■, V.



COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE



HARLEY O. STAGGERS, West Virginia. Chairman



TORBERT H. MACDONALD, Massachusetts

JOHN JARMAN, Olclahoma

JOHN E. MOSS, California

JOHN D. DINGELL, Michigan

PAUL G. ROGERS, Florida

LIONEL VAN DEERLIN, California

J. J. PICKLE, Texas

FRED B. ROONEY, Pennsylvania

JOHN M. MURPHY, New Yorlc

DAVID E. SATTERFIELD III, Virginia

BROCK ADAMS, Washington

RAY BLANTON, Tennessee

W. S. (BILL) STUCKEY, Jr., Georgia

PETER N. KYROS, Maine

BOB ECKHARDT, Texas

ROBERT O. TIERNAN, Rhode Island

RICHARDSON PREYER, North Carolina

BERTRAM L. PODELL, New Yorlc

HENRY HELSTOSKI, New Jersey

JAMES W. SYMINGTON, Missouri

CHARLES J. CARNEY, Ohio

RALPH H. METCALFP), Illinois

GOODLOE E. BYRON, Maryland

WILLIAM R. ROY, Kansas

W. E.
Kenneth J.



WILLIAM L. SPRINGER, Illinois
SAMUEL L. DEVINE, Ohio
ANCHER NELSEN, Minnesota
HASTINGS KEITH, Massachusetts
JAMES T. BROYHILL. North Carolina
JAMES HARVEY, Michigan
TIM LEE CARTER, Kentucky
CLARENCE J. BROWN, Ohio
DAN KUYKENDALL, Tennessee
JOE SKUBITZ, Kansas
FLETCHER THOM"PSON, Georgia
JAMES F. HASTINGS, New York
JOHN G. SCHMITZ, California
JAMES M. COLLINS, Texas
LOUIS FREY, Jr., Florida
JOHN WARE, Pennsylvania
JOHN Y. McCOLLISTER, Nebraska
RICHARD G. SHOUP, Montana



Williamson, Clerk
Painter, Assistant Clerk



Professional Staff



James M. Menger, Jr.
William J. Dixon



Robert F. Guthrie
kort borchardt



Subcommittee on Commerce and Finance



JOHN E. MOSS, California, Chairman
W. S. (BILL) STUCKEY, Jr., Georgia JAMES T. BROYHILL, North Carolina



BOB ECKHARDT, Texas
CHARLES J. CARNEY, Ohio



JOHN WARE, Pennsylvania
JOHN Y. McCOLLISTER, Nebraska



(II)



CONTENTS



(The same table of contents appears in parts 1, 2, 3, and 4)

Part 1

Hearings held on — P»g«

April 20, 1971 1

April 21, 1971 123

April 22, 1971 157

April 26, 1971 : 189

April 27, 1971 225

Part 2

April 28, 1971 325

Part 3

April 29, 1971 675

Part 4

April 30, 1971 1175

Text of—

House Concurrent Resolution 241 3

H.R. 3968 62

H.R. 3970 84

H.R. 4994 9

H.R. 4995 . 33

H.R. 5220 62

H.R. 5221 84

H.R. 5459 84

H.R. 5460 62

H.R. 6528 9

H.R. 7514 37

Report of —

Commerce Department on H.R. 3968 88

Office of Management and Budget on House Concurrent Resolution

241, H.R. 3968, and H.R. 4994 88

Office of Management and Budget on H.R. 7514 89

Statement of —

Baker, Charles D., Assistant Secretary for Policy and International

Affairs, Department of Transportation 89

Baylor, James, insurance commissioner, State of Hlinois 1226

Bernstein, George K., Administrator, Federal In.surance Administra-
tion, Department of Housing and Urban Development 1321

Chilcott, Richard C, vice president. Nationwide Insurance Cos 1206

Clayman, M. Jacob, administrative director. Industrial Union De-
partment, AFL-CIO 677

Comey, Dale R., chairman, actuarial committee, American Insurance

Association 1110

Danstedt, Rudolph, assistant to president, National Council of Senior

Citizens 163, 1 67

Davidson, Louis C, past chairman, ABA section of insurance 700

Davis, John, executive vice president, Ryder System 215,222

Deacy, Thomas E., Jr., American College of Trial Lawyers 700

Denenberg, Dr. Herbert S., commissioner, Pennsylvania Insurance

Department 225

(in)



IV

Stateme<nt of — Continued ^*^®

Dukakis, Michael S., Brookline, Mass 124

Edidin, S. M., vice president and general counsel, Hertz Corp 215

Farnham, C. Eugene, commissioner of insurance, State of Massa-
chusetts 1175

Finneson, Dr. Bernard E., Ridley Park, Pa 157

Griffith, Robert W., vice president and casualty actuary, Nationwide

Insurance Cos 1 206

Hanson, John, executive secretary, National Association of Insurance

Commissioners - ^81

Harrington, Hon. Michael, a Representative in Congress from the

State of Massachusetts 123

Hutton, William R., executive director. National Council of Senior

Citizens .- - , J?^

Jones, T. Lawrence, president, American Insurance Association lllU

Keeton, Dr. Robert, professor. Harvard Law School .. - 117o

Klein, Robert, economics editor. Consumers Union of the United

States 202

Kronzer,'w' James, Jr., Texas Trial Lawyers Association 570

Kuhn, Edward W., past president, American Bar Association 700

Lemmon, Vestal, president. National Association of Independent

Insurers 1078

Loescher, Samuel M., professor of economics, Indiana University..- 662
McGowan, Robert V., president. National Association of Mutual

Insurance Agents -^.- - - t - -a i'A"-:

Mackoff, Benjamin, administrative director, Circuit Court of Cook

County, 111 -. - - . - - -,V - -V-T

Maisonpierre, Andre, vice president, American Mutual Insurance

Alliance ^^ - Vx "* . - - - oao

Markus, Richard M., president, American Trial Lawyers Association. jyy
Max, Frank J., Jr., president, CATRALA, and vice president. Avis

Rent-A-Car Systems, Inc . - 21o

Mertz, Arthur C, vice president and general counsel, National Associa-
tion of Independent Insurers 1^78

Mikva, Hon. Abner J., a Representative in Congress from the State of

Illinois 7- -. - •-

Morrow, Winston V., Jr., chairman of the board and president, Avis

Rent-A-Car System, Inc., as read by John J. Murphy, vice president

and director of insurance and safety \~"t~

Murphy, John J., vice president and director of insurance and safety.

Avis Rent-A-Car System, Inc ' f^V

O'Brien, John J., Franklin Center, Pa . - -:r- ^^

Reardon, Judge John T., circuit court, Quincy, 111., representing the

American Bar Association . - ' ^"

Reid, John N., associate general counsel, American Insurance Associa-

tion ,,-c

Ryan, John G., attorney V - -.:"" tU^

Sargent, Hon. Francis W., Governor of the State of Massachusetts. . 117o
Scariano, Hon. Anthony, a member of the Illinois General Assembly. 189

Schenk, Benjamin, New York State superintendent of insurance 6ia

Smaller, Robert A., president. Hertz Corp ir-'bV:" ^'^^

Steers,' Hon. Newton I., Jr., a State senator from the btafce ot ^^^

Maryland "„"""x — iW\- — ■" 1 99R

Vaccarello, Vince, chief deputy director of insurance. State of Illinois, i^^o

Volpe, Hon. John A., vSecretary, Department of Transportation »y

Walsh, Richard F., Deputy Director, Policy and Plans Development,

Department of Transportation r " ^f '• -V '

Wandel, Dr. William H., professor of insurance. Temple University,

Philadelphia, Pa -.;-. - - V:e - Tf"r;i

Warne, Dr. Colston E., president. Consumers Union of the Unitea ^^^

States cyA'j

Watkins, Frederick D., president, Aetna Insurance Co. - - - - - ^'^'

Woodcock, Leonard, president. International Union, United Auto-
mobile, Aerospace & Agricultural Implement Workers of America—

UAW .

WorthingtonrLornV R., president, National Association of Insurance _^^

Commissioners



Additional material submitted for the record by —
American Bar Association:

Article entitled "The Automobile Accident Reparations System ?<»?*

and the American Bar Association" 980

Condensation of recommendations of ABA Report No. 18 968

Report No. 18 of ABA special committee on automobile accident

reparations 705

Vol. 1 — Executive summary of recommendations and conclu-
sions, California Governor's Automobile Accident Study Com-
mission 999

American Federation of Labor-Congress of Industrial Organizations:
Biemiller, Andrew J., director, Department of Legislation, AFL-

CIO, statement 675

Chart: Damage to cars and property 693

Chart: Personal injurj^ liability claims 692

Chart: Policyholders' own collision and comprehensive 693

Price and availability in the market for automobile insur-
ance — fault versus nonfault compensation schemes 680

American Insurance Association:

Article from the Minneapolis Tribune, April 22, 1971, entitled

"Bar Should Correct Mistakes" 1139

Booklet: Highlights of the New Massachusetts Auto Insurance

Law 1161

Booklet: Massachusetts No-Fault Auto Plan 1151

Booklet: Massachusetts Personal Injury Protection Plan 1155

Statement of T. Lawrence Jones, president, before the Senate
Commerce Committee's Antitrust and Monopoly Subcom-
mittee, December 15, 1969 1117

Table— No-fault legislation proposed in 1969, 1970, and 1971 1137

American Mutual Insurance Alliance:

Comparative pure loss costs 653

News release dated April 28, 1971 . 661

State automobile insurance studies 652

American Mutual Insurance Cos., telegram dated April 26, 1971, from
Richard H. Schannen, general counsel, to Chairman Moss, express-
ing support for AMI A guaranteed protection plan 1342

American Trial Lawyers Association:

Circle charts "Where the premium dollar goes" with notes 316

Justification of estimated property damage percentage 319

American Trucking Associations, Inc., Peter T. Beardsley, president

and general counsel, statement 668

Baylor, James, insurance commissioner. State of Illinois:

Article from Bloomington, 111., Daily, April 8, 1971, entitled

"Ogilvie Insurance Proposals Offer Benefits to Motorists" 1309

Article from Chicago Daily News, April 6, 1971, entitled "Auto

Insurance Reform" ^^ 1305

Article from Chicago Daily News, April 6, 1971, entitled "Risk

Firms Hail Ogilvie No- Fault Plan" 1306

Article from Chicago Sun-Times, April 7, 1971, entitled "For

Auto Insurance Reform" 1308

Article from Chicago Todav, April 6, 1971, entitled "For 'No-
Fault' Car Insurance" 1304

Article from Chicago Today, April 6, 1971, entitled " 'No-Fault'

Car Insurance: Insurers Pro, Lawyers Anti" 1304

Article from Chicago Today, April 7, 1971, entitled "No-Fault

Insurance Pas.sage Predicted" 1308

Article from Chicago Tribune, April 7, 1971, entitled "The

Illinois Plan for Auto Insurance" 1307

Article from Illinois News, April 29, 1971 1311

Booklet: Auto Reparations in Illinois — The Illinois Plan 1251

Editorial, station WON, April 24-27, 1971, "No-Fault Auto

Insurance" _ . . . .... 1310

Editorial, WMAQ-TV, April 26, 1971 1310

Letter dated April 28, 1971, from Hon. Richard B. Ogilvie,
Governor of the State of Illinois, to Chairman Moss, re Illinois
plan 1230



VI

Additional material submitted for the record by — Continued

Baylor, James, insurance commissioner, State of Illinois — Continued P^Ke
Newsclip, Herald-WHIG, April 6, 1971, "Ogilvie's Insurance

Plan" 1306

Special message on traffic safety to 77th General Assembly by

Governor of Illinois 1232

Special message on insurance to 77th General Assembly by

Governor of Illinois 1242

Bell, Fletcher, commissioner of insurance. State of Kansas, letter
dated March 30, 1971, to Congressmen Larry Winn, Jr., and William
R. Roy, endorsing the administration approach to reform of the

automobile insurance system 1340

Blue Cross Association, letter dated May 4, 1971, from Walter J.
McNerney, president, to Chairman Moss re health-care costs

resulting from automobile accidents 1339

Communications Workers of America, statement of Joseph A. Beirne,

president 1331

Consumers Union of the United States: Exhibit A — Adapted from
article "Insurance: The Road to Reform" in April 1971 issue of

Consumer Reports 208

Independent Mutual Insurance Agents Associations of New York,
New Jersey, and Connecticut, statement of National Affairs Com-
mittee 1 333

International Longshoremen's & Warehousemen's Union, statement - 1332
Liberty Mutual Insurance Co., letter dated May 17, 1971, from Robert
A. Penney, counsel, to Chairman Moss, endorsing the view that ac-
tion in the field of no-fault automobile insurance should be left to

the States 1342

Mackoff, Benjamin, administrative director. Circuit Court of Cook

County, 111., editorial from Wall Street Journal dated April 21, 1971- 147
Moss, Hon. John E., a Representative in Congress from the State of
California:

Article from July 1966 Life edition of Best's Insurance News:
Plain talk about the possibility and merit of Federal supervision

of insurance 657

Biographical sketch of George K. Bernstein, Administrator, Fed-
eral Insurance Administration, Department of Housing and

Urban Development 1321

Tabulation of responses to TV program "The Advocates" 659

Motorcycle Industry Council, Inc., statement 1337

National Association of Independent Insurers:

Excerpt from Advance Payments in Liability Claims (Buchheit,

Young & Kurtock) 1098

Guiding principles relating to automobile insurance claims 1100

NAII dual protection plan 1089

National Association of Insurance Commissioners, Iowa Insurance

Department budget ''^^°

National Association of Mutual Insurance Agents:

Exhibit A— The role of the independent agent m the marketmg

of automobile insurance ^].^

Exhibit B — Motorists' insurance — Protection plan- . ^ . ^'o

Exhibit D — State insurance department statistical data, year

ending December 31, 1969 282

National Association of Mutual Insurance Cos., statement l*^*^'^

National Council of Senior Citizens, article from New York Times

dated April 22, 1971 - .- 1°"

Nationwide Insurance Co., plan for reform of the automobile insurance

system 1^1"^

Rogers, Norman L., president, Lawyer Reform of the United States,

statement - - looo

Sargent, Ilonr FVanc'is'w.rGovernor of the State of Massachusetts,

technical review entitled "The New No-Fault Insurance Plan - ll»cJ

Scariano, Hon. Anthonv, a member of the Illinois General Assembly:
Table 1.— Members on State legislative committees having juris-
diction over no-fault bills whose dccupations were listed as
lawyer and insurance — 10 selected States, 1969 i^^



VII

Additional material submitted for the record by — Continued

Scariano, Hon. Anthony, a member of the Illinois General Assembly —
Continued

Table 2. — Members of 10 selected State legislatures whose occu- Pa^e

pations were listed as lawyer and insurance, 1969 192

Occupational characteristics of senate and house members of 10

State legislative committees on insurance, 1971 193

Article from Chicago Today, April 15, 1971, entitled "No-fault

Car Insurance Has Faults" 198

Critique by Prof. Jeflfrey O'Connell of the Illinois auto reparations

plan 199

Schenk, Benjamin, New York State superintendent of insurance, report,
"Automobile Insurance — For Whose Benefit?" with actuarial sup-
plement 339

Transportation Department :

Amplification of views on State-by-State adoption of no-fault

automobile insurance 116

Estimated aggregate number and volume of auto accident

liability claims, by type of claim, 1968 121

Five-3^ear cost estimates for implementing H.R. 7514 and House

Concurrent Resolution 241 108

Watkins, Frederick D., president, Aetna Insurance Co., results of
Gallup poll on no-fault insurance published in the Courant, April 22,
1971 254



vin

ORGANIZATIONS REPRESENTED AT HEARINGS

Aetna Insurance Co., Frederick D. Watkins, president.
American Bar Association:

Davidson, Louis G., past chairman, section of insurance.

Deacy, Thomas E., Jr., American College of Trial Lawyers.

Kuhn, Edward W., past president.

Reardon, Judge John T., circuit court, Quincy, 111.
American Federation of Labor-Congress of Industrial Organizations:

Biemiller, Andrew J., director, department of legislation.

dayman, M. Jacob, administrative director, industrial union department.
American Insurance Association:

Comey, Dale R., chairman, actuarial committee.

Jones, T. Lawrence, president.

Reid, John N., associate general counsel.
American Mutual Insurance Alliance, Andre Maisonpierre, vice president.
American Trial Lawyers Association, Richard M. Markus, president.
American Trucking Associations, Inc., Peter T. Beardsley, vice president and

general counsel.
Avis Rent-A-Car System, Inc. :

Max, Frank J., Jr., vice president.

Morrow, Winston V., Jr., chairman of the board and president.

Murphy, John J., vice president and director of insurance and safety.
Car and Truck Renting and Leasing Association (CATRALA), Frank J. Max, Jr.,

president.
Consumers Union of the United States:

Klein, Robert, economics editor.

Warne, Dr. Colston E., president.
Hertz Corp.:

Edidin, S. M., vice president and general counsel.

Smalley, Robert A., president. .

Housing and Urban Development Department, George K. Bernstem, Admm-

istrator. Federal Insurance Administration.
National Association of Independent Insurers:

Lemmon, Vestal, president.

Mertz, Arthur C, vice president and general counsel.
National Association of Insurance Commissioners:

Hanson, John, executive secretary.

Worthington, Lome R., president.
National Association of Mutual Insurance Agents, Robert V. McGowan, president.
National Council of Senior Citizens:

Danstedt, Rudolph, assistant to president.

Hutton, William R., executive director.
Nationwide Insurance Co. :

Chilcott, Richard G., vice president.

Griffith, Robert W., vice president and casualty actuary.
Ryder Svstem, John Davis, executive vice president.
Texas Trial Lawyers Association, W. James Kronzer, Jr.
Transportation Department: , t^ ,. j t ^ *• i Aff„;^o

Baker, Charles D., Assistant Secretary for Policy and International Affairs.

Volpe, Hon. John A., Secretary.

Walsh, Richard F., Deputy Director, Policy and Plans Development.
United Automobile, Aerospace and Agricultural Implement Workers of America—
UAW (International Union), Leonard Woodcock, president.



NO-FAULT MOTOR VEHICLE INSURANCE



THURSDAY, APRIL 29, 1971

House of Rbpresentattves,
Subcommittee on Commerce and Finance,
Committee on Interstate and Foreign Commerce,

Washington^ D.C.

The subcommittee met, pursuant to notice, at 10 a.m., in room 2322,
Raybum House Office Building, Hon. John E. Moss (chairman)
presiding.

Mr. Moss. The committee will be in order.

At this time, the Chair would like to ask unanimous consent to place
in the record the testimony of Mr. Andrew Biemiller of the American
Federation of Labor, which he would have presented had he been
able to appear today. Illness has prevented his appearance. Is there
objection ?

Hearing none, the testimony vf'iW be placed in the record at this
point.

(Mr. Biemiller's prepared statement follows : )

Statement of Andkew J. Biemillek, Director, Department of Legislation,

AFL-CIO

Mr. Chairman, I am delighted to be here today to testify on proposals for
auto insurance reform as set forth in 11. Con. Res. 241, introduced by Mr. Stag-
gers and Mr. Springer on March 29 and on H.R. 4994 introduced by the Chair-
man of this Subcommittee, Mr. Moss, on February 25.

Let me say at the outset that the AFL-CIO fully supports H.R. 4994 and
strongly urges the rejection of H. ConyRes. 241.

Principally, H.R 4994 would create a federal requirement that auto in.surance
policies be issued on a "no-fault" basis for compensation of losses for injury
and death, to become effective within one y«ar after enactment.

H. Con. Res. 241 merely urges the state legislatures to "evolve" an auto in-
surance system of an equitable nature, including provision for the "no-fault"
principle in injury cases. The Secretary of Transportation would be asked to
monitor the progress of the states and issue a report 25 months later on the
progress that had been made and the feasibility of attaining a satisfactory
system without further legislation.

Mr. Chairman, I think we can safely forecast at the outset that no satis-
factory system is likely to "evolve" at the state level for many, many years, if
ever. We can see no possible excuse for postponement of a uniform system of
equitably-based auto insurance. Federal legislation is the only way in \\-hich
such a system can be made available promptly. We see no reason for another
2-year delay to verify this predictable certainty.

As early as February 1967, the AFIv-CIO Executive Council called for a thor-
ough investigation of the insurance industry and the development of federal
legislative remedies for its deficiencies. In subsequent testimony on proposals
in Congress to authorize a comprehensive auto insurance study by the Depart-
ment of Transi>ortation, we made the following statement :

"We cannot pretend to superior wisdom as to the be.st solution to the ills of
the auto insurance program, but we are frank to say that we have little confidence

(67.5)



67d

that these problems can ultimately be resolved by voluntary action on the part
of the insurance industry or by action of the 50 separate states."

We are still of this view.

The Department of Tran.sportation has now i.ssued its study, comprising 24
volumes, including its final report on "'Motor Vehicle Crash Losses and Their
Comiiensation in the I'nited States." The reiwrt is truly an excellent one, and its
spec-ifications for a reformed system are clearly, and succinctly .set forth.

There is indeed, little disagreement with the report's conclusions as to the need
for reform and the substance of the reform that should he made as reflected in
the provisions of either H.R. 45>94 or H. Con. Res. 241. The fundamental dif-
ference is whether to proceed immediately with federal reform legislation or to
leave it to the states, the solution which is l>eing backed bv the Xixon Adminis-
tration.

On February 19, 1971, the AFI^CIO. in a statement on Consumer Protection,
specifically called for federal auto insurance reform legislation as outlined in a
series of bills which had been intro<luce<l late in 1970 by Senator Hart. H.R.
4994 is this year's version of one of the.se bills, currentlv iVing sponsored in the
Senate by Sen. Magnuson and Sen. Hart as S. 945.

The relevant portion of the Executive Council statement is as follows :
"The Comprehensive Automobile In.surance and Comi)ens{ition Study conducted
by the Department of Transportation has been largely completed and Congress
should be in a position to act concretely on the crisis in auto insurance. The
outlines of constructive auto insurance reform have already been laid out in
legislative proiwsals introduced by Senator Philip Hart toward the close of the
last Congress. We are glad to endorse this approach, including the introduction
of the "no-fault" principle into the basic .system of comi>en.sation to accident
victims, the encouragement of group coverage and the provisions designed to
reduce the costs of auto repair."

The operative word which commands a federal solution is "crisis"— the "crisis
in auto insurance." A crisis calls for action now and not two, three or 20 years
later, as would be the inevitable result of leaving the problem to the states.

The sub.stance of the Dei>artment's massive report, if not the eventual recom-
mendations of Administration's spokesmen based upon the report, fully document
the existence of the crisis.

Here is the summary indictment made by the report of the existing situation :
"In summary, the existing .system ill .serves the accident victim, the insuring
public and society. It is inefficient, overly costly, incomplete and slow. It allocates



Online LibraryUnited States. Congress. House. Committee on InterNo-fault motor vehicle insurance. Hearings, Ninety-second Congress, first session .. (Volume pt. 3) → online text (page 1 of 52)