Abstract

http://ssrn.com/abstract=1946462
 
 

References (31)



 


 



Rainfall or Rainmaking? Lawyers, Courts, and the Price of Mold Insurance in Texas


Charles M. North


Baylor University Department of Economics

James R. Garven


Baylor University - Department of Finance, Insurance & Real Estate

Carl R. Gwin


Pepperdine University

October 19, 2011

Journal of Risk and Insurance, Forthcoming

Abstract:     
In well-functioning property-liability insurance markets, the price of coverage reflects the impact of the legal environment on the frequency and severity of claims. This paper presents a case study of the Texas mold insurance crisis of 2001-02. We provide a narrative of the controversy in Texas over insurance coverage for household mold and use county-level data from a single Texas insurer to assess the determinants of post-crisis prices for supplemental mold, slab, and extended water loss coverages. We find that more attorneys per capita and more heavily Democratic courts were both associated with higher prices for mold and slab coverage.

Number of Pages in PDF File: 32

JEL Classification: G22, K41

Accepted Paper Series


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Date posted: October 21, 2011 ; Last revised: August 27, 2012

Suggested Citation

North, Charles M. and Garven, James R. and Gwin, Carl R., Rainfall or Rainmaking? Lawyers, Courts, and the Price of Mold Insurance in Texas (October 19, 2011). Journal of Risk and Insurance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1946462

Contact Information

Charles M. North
Baylor University Department of Economics ( email )
One Bear Place # 98003
Waco, TX 76798-8003
United States
James R. Garven (Contact Author)
Baylor University - Department of Finance, Insurance & Real Estate ( email )
One Bear Place #98004
Baylor University
Waco, TX 76798-8004
United States
HOME PAGE: http://business.baylor.edu/directory/?id=James_Garven
Carl R. Gwin
Pepperdine University ( email )
24255 Pacific Coast Highway
Malibu, CA 90263
United States
310-506-7352 (Phone)
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