Our Positions | American Law Institute (ALI)


The ALI is conducting a project on the Restatement of the Law of Liability Insurance to develop principles of contract law in the liability insurance context, principles of liability insurance coverage, and principles of the management of insured liabilities. Once finalized and published, the Restatement of the Law, Liability Insurance will significantly affect litigation outcomes.

Restatement of Law are meant to reflect the consensus of the American legal community as to what the law is, and, in some cases, what it should become. They restate existing common law into a series of principles or rules. While courts are under no formal obligation to adopt ALI Restatements as the law, they often do because such sections supposedly “restate” the already-established law in that jurisdiction, or on issues of first impression, is persuasive in terms of demonstrating the current trend that other jurisdictions are following.

On May 23, 2017, ALI announced at its annual meeting that rather than hold a final vote on the Restatement of Law, Liability Insurance as scheduled, the draft's Reporters (i.e. authors) "agreed that another year of work" was needed on the project.

NAMIC Position

ALI Restatements of Law projects are supposed to be clear formulations of common law, which provide an unbiased reflection of the law as it presently stands. Unfortunately, this Insurance Law Restatement project has adopted numerous minority rules, which is fundamentally inconsistent with the purpose of a Restatement of Law project. These minority rules generally impede the ability of insurance companies to exercise their legal rights. These minority rules create litigation impediments for insurance companies that are not based upon prevailing judicial determinations. This raises the concern that a court will adopt the minority rule and believe, in error, that it is actually adopting a majority position because the rule is outlined in what is now a “Restatement” project.

The end result of this ALI project could seriously harm all property casualty insurance companies. NAMIC and AIA have enlisted a working group of insurance companies to coordinate and fund the opposition to the ALI’s improper representation of minority positions as established law. This Restatement covers many important areas of the law of contracts in the liability insurance context, liability insurance coverage, and the management of insured liabilities.

NAMIC Hosts More Than 250 for ALI Webinar

September 14, 2020 More than 250 insurers and their counsel attended a webinar focused on the impact of the ALI Restatement of the Law, Liability Insurance to the laws of California, Nevada, Oregon, and Washington hosted by NAMIC and the American Property Casualty... Read more

Western Region Webinar on ALI Restatement Set for Sept. 9

August 24, 2020 NAMIC and the American Property Casualty Insurance Association are conducting a regional symposium Sept. 9 addressing the impact of the American Law Institute’s Restatement of the Law, Liability Insurance on the law in California, Nevada, Oregon... Read more

Western Regional Webinar on The Restatement of Law, Liability Insurance – Save The Date

August 11, 2020 NAMIC and APCIA are pleased to announce that the third regional program on the American Law Institute’s Restatement of the Law, Liability Insurance will take place on Sept. 9 from 1 p.m. to 3 p.m. EDT; 10 a.m. to 12 p.m. PDT. The program... Read more

Save The Date: Western Region Webinar on Restatement Of Law, Liability Insurance

July 27, 2020 NAMIC and the American Property Casualty Insurance Association are pleased to announce a third regional program on the American Law Institute’s Restatement of the Law, Liability Insurance will take place... Read more

Kentucky: Legislature Overrides Governor’s Veto on ALI Restatement Bill, ALI Repudiation Becomes Law

April 16, 2020 Gov. Andy Beshear on April 7 vetoed HB 150, a bill designed to repudiate the American Law Institute’s Restatement of Liability Insurance. NAMIC worked closely with its state trade partner, the Insurance Institute of Kentucky, and other industry... Read more

Contacts

Tom Karol
General Counsel - Federal

202.580.6741

  Tom