Article ID: 1d1711ce49f4a687e5b7e295f88a45091ca21ad2255a7571e7929d8e8ace8f6d
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URL: https://www.businessinsurance.com/insurers-risk-managers-praise-bill-banning-litigation-funding/
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Insurers, risk managers praise bill banning litigation funding - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Insurers, risk managers praise bill banning litigation funding by Richard Sine Manny Padilla P/C Insurers , Risk Management Jun 30, 2026 Insurers and risk managers are applauding North Carolina’s recent decision to prohibit third-party investment in civil litigation, saying it will result in a smoother functioning and less costly legal system. “Third-party litigation funding distorts the purpose of our legal system,” said Manny Padilla, president of the Risk & Insurance Management Society Inc., in a statement. “It allows outside investors to profit from lawsuits at the expense of plaintiffs and businesses alike, driving up costs and creating unnecessary financial strain. North Carolina lawmakers have taken an important step toward addressing these concerns.” “The bill is an important measure that will help protect North Carolinians from predatory commercial third-party funders looking to profit off lawsuits at the expense of businesses and consumers,” said Ron Jackson, vice president of state government relations at the American Property Casualty Association, a trade association of insurers. On June 23, North Carolina became the first state to ban third-party litigation funding, in which investors pay legal costs in return for a stake in the outcome. A funder can incur civil penalties of up to $50,000 per violation under House Bill 315. Several other states have passed laws requiring disclosure of funding arrangements. Third-party litigation can drive up settlement costs, prolong litigation and raise defense costs for companies, RIMS says. Advocates for litigation funding say it can make access to the legal system more affordable. Related News House votes to reauthorize terrorism insurance program June 30, 2026 Louisiana high court issues pair of comp fraud rulings June 30, 2026 Nevada sets fiscal year 2027 workers comp wage cap June 30, 2026 When the $5 dress now comes with baggage June 30, 2026 EPIC names surety practice development leader June 30, 2026 Equity firm FTV Capital invests in Carbon Underwriting June 30, 2026 Soft global property cat rates expected all year: Guy Carpenter June 30, 2026 Record heatwave puts EU’s grain crops at risk June 30, 2026 Flights cancelled as storms pummel New Zealand June 30, 2026 Facebook-f X-twitter Linkedin-in Business Insurance is a singular, authoritative news and information source for executives focused upon risk management, risk transfer and risk financing. Never miss important news: Become a Business Insurance Online subscriber today Subscribe Now Information About Us Contact Advertise Privacy Policy Terms & Conditions Copyright 2026. BUSINESS INSURANCE HOLDINGS Member, Beacon International Group, Ltd.
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