The Forms And Functions Of Tort Law, 4th (Concepts And Insights) Kenneth Abraham
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Yet, there is no reason to suppose that the relationship between liability and insurance — a relationship that has been consistently stable for 150 years and that has resulted in major changes in tort and insurance law over that time — can be taken as fixed. In a forthcoming book, my co-author, Annie Patrick, and I argue that this relationship is inherently unstable and that, in periods of financial crisis, insurers and tort law must develop for each other in ways that are fundamentally new and unpredictable.
We attribute instability to changes in economic conditions. In particular, we argue that insurance and tort law develop for each other by way of what we call the “global economy.” In a global economy, there are two ways to obtain insurance: One is to purchase the insurance from a domestic insurer. The other is to purchase insurance from a foreign insurer — an insurer that is not part of the domestic insurance market. These two options are not available to a domestic insurer.
Chapters 9–13 are devoted to analyzing how government has reacted to the increased importance of tort. During the past century, it has played a number of roles. The primary one has been as a supplement to private insurance. The other roles have been as a consumer protector, as provider of goods, services, or infrastructure, and as regulator. These four types of roles are neither exhaustive nor exhaustive, and some overlap.
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