Legal Cost Insurance as a Strategic Device
AbstractLegal Cost Insurance (LCI) is not only a device to reallocate risk, but also to enhance an insured's position in a settlement negotiation. The paper points out that this function of LCI is especially important in cases that have a negative expected value for potential plaintiffs. Hence LCI is of interest even for risk-neutral customers. -- Rechtsschutzversicherungen (LCI) dienen nicht nur der Risikoallokation, sondern verbessern auch die strategische Position des Versicherten in Vergleichsverhandlungen. Dies gilt insbesondere bei Klagen mit negativem Erwartungswert für den potentiellen Kläger. Dadurch sind LCI sogar für risikoneutrale Kunden interessant.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Saarland University, CSLE - Center for the Study of Law and Economics in its series CSLE Discussion Paper Series with number 97-11.
Date of creation: 1997
Date of revision:
Contact details of provider:
Postal: Postfach 151150, 66041 Saarbrücken
Phone: *49(0)681-302 2132
Fax: *49(0)681-302 3591
Web page: http://www.uni-saarland.de/fak1/fr12/csle/
More information through EDIRC
Legal Cost Insurance; Bargaining; Settlement;
Find related papers by JEL classification:
- K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- van Velthoven, Ben & van Wijck, Peter, 2001. "Legal cost insurance and social welfare," Economics Letters, Elsevier, Elsevier, vol. 72(3), pages 387-396, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics).
If references are entirely missing, you can add them using this form.