Tort Law and the Public Interest: Competition, Innovation, and Consumer Welfare

By Peter H. Schuck | Go to book overview

2
Liability Insurance: Volatility in Prices and in the Availability of Coverage

SCOTT E. HARRINGTON

L iability insurance plays a major role in the United States economy. It increases economic security and thus reduces the cost of risk for parties exposed to legal liability and for persons who may experience losses not fully covered by firstparty life or health insurance. The conditions and terms under which liability insurance can be purchased also significantly affect economic activity and the level of precautions taken by potential injurers and accident victims.

Volatility in the price and availability of commercial liability

____________________

SCOTT E. HARRINGTON is professor of insurance and finance at the College of Business Administration of the University of South Carolina. He was formerly professor of insurance at The Wharton School, University of Pennsylvania. Professor Harrington is the coeditor with J. David Cummins of Fair Rate of Return in Property-Liability Insurance ( 1986) and the author of numerous articles. He is associate editor of the Journal of Risk and Insurance and vice-president of the American Risk and Insurance Association, an academic association. The author wishes to thank Nicos Scordis for research assistance and Peter Schuck for helpful comments and skillful editing.

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