An insurance trade organization has teamed with other business groups in a massive effort to kill California legislation that would prohibit secret settlements in cases involving product defects, unfair insurance claims practices, and energy price manipulation.
"Intense lobbying is going on," said Nicole Mahrt, of the American Insurance Association. The activity underway has included companies donating the use of corporate jets to fly in advocates to campaign against the measures involved, she related.
So far the battle has gone against business interests. An Assembly measure passed after Ms. Mahrt said, "we fought passage tooth and nail."
It passed by a 41-4 vote in the 80-member Assembly. The "bare minimum" and several Democratic legislators expressed reservations, Ms. Mahrt said.
