Gov. Juan N. Babauta signed into law a bill that aims to allow \u201cdirect action\u201d against negligent insurance companies.<\/p>\n
Babauta said that House Bill 14-191, which amends the direct action provision set forth in Commonwealth Insurance Act of 1983, accomplishes the need to address economic issues that are adversely affecting the ability of insurance companies to do business in the CNMI.<\/p>\n
At the same time, he said the measure continues to protect the rights of individuals who have suffered bodily harm or have incurred damage to property as a result of the negligent acts of a person or business that is covered by a liability insurance policy.<\/p>\n
The present provision, he said, allows an individual to initiate a lawsuit against an insurance company \u201crather than the alleged negligent individual or business covered by a liability insurance policy.\u201d<\/p>\n
\u201cThe unintended result of this \u2018direct action provision\u2019 has been a disparity in the amount of damages awarded to individuals when an insurance company is a named defendant and the amount of damages awarded to individuals in cases in which an insurance company is not a named defendant,\u201d he said.<\/p>\n
He acknowledged that the situation has adversely affected the ability of insurance companies to do business in the CNMI and resulted in an increase in premiums for liability insurance policies.<\/p>\n
Babauta, meanwhile, disapproved House Bill 14-28, which would have required a person applying for a driver\u2019s license to first complete and pass a driver education course. The bill, Mandatory Driver Education Act of 2004, essentially mandates that an individual enroll in and successfully complete more than 10 days at a certified Driver\u2019s Education Program prior to being able to obtain a driver\u2019s license.<\/p>\n
The bill requires a public, private or parochial college, university, or high school, or business enterprise seeking to establish a certified driver\u2019s education program to submit an official application to the Department of Public Safety containing a detailed curriculum that includes 30 hours of classroom instruction time and six hours of laboratory instruction time.<\/p>\n
\u201cThe implementation of such curriculum is not practical for either private individuals seeking to obtain a driver\u2019s license or business whose employees operate commercial vehicles as part of the scope of their employment,\u201d Babauta said.<\/p>\n
He said it would adversely affect the tourism industry and the Department of Public Health because they employ foreign nationals who would be prevented from operating vehicles without passing first the 10-day driver\u2019s education program.<\/p>\n
The bill requires that individuals from \u201cforeign jurisdictions\u201d and all other persons applying for a driver\u2019s license for the first time to pass the mandatory education program.<\/p>\n
Further, Babauta said that the liability insurance requirement mandated for private driver education program is only limited to $10,000, which \u201cis not sufficient to cover the potential liability that exists for such a driver\u2019s education program.\u201d<\/p>\n
Likewise, he said that public institutions such as the Public School System or Northern Marianas College are not required by the bill to obtain any liability insurance for the program, thus putting the on to the CNMI government to assume potential liability.<\/p>\n
The measure, he said, also requires that only a vehicle approved by the Department of Public Safety can be used to conduct the laboratory instruction portion.<\/p>\n
Babauta said he supports \u201cthe intent of this measure, but the provisions set forth therein are too restrictive and impractical.\u201d<\/p>\n
He said the existing provisions are sufficient to ensure the safety of the public.<\/p>\n","protected":false},"excerpt":{"rendered":"
Gov. Juan N. Babauta signed into law a bill that aims to allow \u201cdirect action\u201d against negligent insurance companies.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-85303","post","type-post","status-publish","format-standard","hentry","category-local-news"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/85303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=85303"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/85303\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=85303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=85303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=85303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}