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24 Drake L. Rev. 753 (1974-1975)
Who Wants a New Insurance Policy

handle is hein.journals/drklr24 and id is 765 raw text is: WHO WANTS A NEW INSURANCE POLICY? Donald E. Reutershant Germain E. Kunzett I. INTRODUCTION In 1974 Sentry Insurance sponsored a national opinion study conducted by the Louis Harris and Associates polling firm and the Wharton School of Insurance. Sentry management wanted to find out what the nation's policyhold- ers thought about their auto and homeowners insurance. One message came through loud and clear: the consumer wanted an easy-to-read policy. But the fact that such policies were generally not available in the industry only testified to the variety of problems to be solved before The Plain Talk Car Policy (reproduced in Appendix A) could be offered to the consumer. The first hurdle was familiarity with current policy language. Tradition exerts tremendous force in the world of the lawyer and the insurance company. Precedent and precept guide the drafter of most legal documents because they represent safe, easy and comfortable conditions within which to create a contract. While lawyers are comfortable with most insurance contracts, the general consumer is not. Drafters of insurance policies hold fast to traditional language because every word of the policy has been tested in a court of law. That statement is only true if you add the phrase, and retested and retested and retested. For example, the first sentence-note the length-of the liability coverage section of the typical auto policy reads: To pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages because of: A. bodily injury, sickness or disease, including death resulting there- from, hereinafter called bodily injury, sustained by any person, B. injury to or destruction of property, including loss of use thereof, hereinafter called property damage; arising out of the ownership, maintenance or use of the owned auto- mobile or any non-owned automobile, and the company shall defend any suit alleging such bodily injury or property damage and seeking damages which are payable under the terms of this policy, even if any of the allegations of the suit are groundless, false or fraudulent; but the company may make such investigation and settlement of any claim or suit as it deems expedient. t Donald E. Reutershan, President, Sentry Insurance a Mutual Company, Stevens Point, Wisconsin. LL.B. Syracuse University College of Law, 1948. Member of the New York State Bar. t Germain E. Kunze, Home Office Liability Claims Manager, Sentry Insurance a Mutual Company, Stevens Point, Wisconsin. LL.B. William Mitchell College of Law (for- merly the St. Paul College of Law) 1953. Member of the State Bar of Minnesota.-Ed.

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