1 See Richland, Municipal Law: Local Government Liability Insurance and Tort Reform, N.Y.L.J., May 22, 1986, at 1 (over 163 towns in New York State reported a premium increase of up to 100%; over 41 towns reported an increase of up to 400%); N.Y. Times, Mar. 4, 1986, at A26, col. 1 (editorial) (California's Orange County experienced six-fold increase in premiums); Sawyer, How a Good Town Became a Bad Risk, Wash. Post, Feb. 25, 1986, at A6, col. 6 (insurance premium for Schaghticoke, N.Y., increased 400% in course of one year). 2. Wall St. J., Apr. 16, 1986, at 41, col. 2 (reporting on indications that 'quite a few' New Jersey municipalities can't get insurance); Sullivan, U.S., States Seeking Ways to End Liability Insurance Crisis, Christian Sci. Monitor, Mar. 7, 1986, at 4, col. 3 (Blue Lake, Cal., lost its liability insurance policy and flew flag upside down as signal of distress); Wolinsky, Insurance Crisis Forecast for Most California Cities, L.A. Times, Feb. 28, 1986, at 3, col. 3 (estimating that two-thirds of California cities will be forced to go without liability coverage, while 43 cities already lack coverage); see also N.Y. Times, Mar. 4, 1986, at A26, col. 1 (editorial) (discussing need for proposals to smooth out effects of insurance business cycles); telephone interview with Mark Wasser, General Counsel to California Local Agency Self-Insurance Authority (Jan. 25, 1988) [hereinafter Wasser Interview] (stating that joint insurance pools were formed in response to cyclical nature of commercial insurance rates). 3. See Blodgett, Premium Hikes Stun Municipalities, A.B.A. J., July, 1986, at 48, 51 (1986) (reform of state tort systems expected in reaction to liability crisis); Priest, The Current Insurance Crisis and Modern Tort Law, 96 YALE L.J. 1521, 1587-89 (1987) (discussing tort reform); Wash. Post, Nov. 20, 1987, at C4, col. 1 (Virginia facing problems regarding liability insurance despite prior legislative action); Weintraub, 9 Bills Limiting Governmental Liability Pass Key State Panels, L.A. Times, Aug. 25, 1987, at 3, col. 2 (legislation passed to limit state and local government liability); Pasztor, White House Switches Focus to States in Bid for Liability-Insurance Revisions, Wall St. J., Mar. 27, 1987, at 48, col. 2 (in 1986, 30 states adopted laws that in some way limit liability claims); Richland, supra note 1, at 2, col. 3 (discussing New York state proposal to amend rule of joint and several liability, and abolish collateral-source rule in reaction to insurance crisis); Sullivan, supra note 2, at 4, col. 1 (as of March 1986, 44 states with legislatures in session had tort reform bills pending); N.Y. Times, Mar. 4, 1986, at A26, col. 1 (editorial) (insurers call for tort reform to limit local government liability). In California, a bill calling for a state insurance pool was recently passed by the state assembly. CAL. GOV'T CODE ?? 6599.01-.41 (West Supp. 1988). Under the California law, a state-instituted liability fund, administered through the Local Agency Self-Insurance Authority (LASIA), provides municipalities with insurance coverage for all tort liability over $1,000,000 and under $25,000,000 not met by private insurers. The fund is supported by premiums paid by municipalities, membership fees, and interest earned on money in the fund. The fund and its administration are separate from the state government, and the state is not directly responsible for the fund or for torts committed by any municipality covered under the plan. The program's sponsor stressed that [plublic entities are among those most severely affected by the unavailability of liability insurance. Cities and counties are particularly affected because of their high contact with people who use public facilities, especially streets, highways, parks and beaches. D. Hauser, Liability: Local Agency Self-Insurance Authority 1 (Aug. 26,
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