Thank Iowa juries

Column by Andrew Mertens

September 29, 2024 via Des Moines Register

Why do people sue insurance companies? Most of us instinctively know the answer. Sometimes insurance companies don’t do the right thing. Consider Ernest Wilcke from Spirit Lake, a Purple Heart veteran who fought at Iwo Jima. He filed a claim with his insurance company in 2015 after a neighborhood fire destroyed his roof. His insurance company wouldn’t cover it. That is, until a jury of Iowa citizens stepped in and ordered them to do it. Consider Lon Tweeten, from Woolstock, who bought workers’ comp insurance for his farm operation. In 2018 his son and sole employee got hurt on the job. Every judge has ruled in Lon’s son’s favor, but the insurance company is appealing to the Supreme Court, still refusing to pay his medical bills. Why did they sue? Well, what choice did they have? Insurance companies deny legitimate claims like Ernie’s and Lon’s every day. Thankfully, Iowa juries and the courts are there to correct these mistakes.

Grinnell Mutual’s CEO wrote a guest essay Sept. 24 warning of climbing insurance rates. He blamed inflation, climate change, and, in small part … his own policyholders. He claimed that litigation and large jury verdicts have increased. But that’s not true. There were twice as many tort lawsuits filed in Iowa 20 years ago compared to today, according to the Iowa state court administrator. The national VerdictSearch database shows the number of verdicts over $1 million have shrunk by two-thirds since 2010.

So here is a quick reminder to the Iowa insurance industry. Yes, we are all rooting for you to remain solvent and profitable. We all need insurance coverage after all. But if you don’t want to get sued by your policyholders, then take better care of your policyholders. When an Iowa jury has to step in and order you to pay insurance claims, you have no one to blame but yourself.