An insurance industry-financed group that didn’t even exist until the final weeks of the Legislature’s session plowed just shy of $1 million into an aggressive lobbying campaign.
It turned out to be money well spent: Lawmakers went home without making it easier for consumers to sue insurance companies they feel wronged by.
Newly filed reports with state regulators put Minnesotans Against Fraud & Higher Insurance Costs in the top ranks of lobbying groups. Only the state teachers union, Education Minnesota, spent more.
The group didn’t hit the radar of the Minnesota Campaign Finance and Public Disclosure Board until May 1, when an established insurance lobbyist registered under its label. Around the same time, it launched an advertising and mailing blitz urging defeat of the legislation the group argued would push up insurance premiums and encourage frivolous lawsuits.
Mark Kulda, a spokesman for the organization, said the stakes were so high that the industry felt compelled to run a campaign that was more visible and vocal than is normally undertaken by the allied Insurance Federation of Minnesota.
“I think our companies were very happy about the way it turned out and would probably be strong in 2008 again,” Kulda said. “Nobody is questioning whether it was worth it. They all realize it was.”
Kulda said the industry is open to a compromise that caps damage awards and attorneys fees.
The group spent about 250 times more than its main opposing force, the Minnesota Trial Lawyers Association. The trial lawyers group, which has since changed its name to the Minnesota Association for Justice, reported spending $3,980.
Lobbyists are required to report their spending on advertising, travel, food and beverages and preparation of materials, among other things. They operate largely on an honor system.
Timothy Adams, Minnesota Association for Justice executive director, said the large sum of money from the other side was telling.
“They are so afraid, they want to protect their right to treat consumers badly that they’re willing to spend $1 million,” he said. “That’s exactly why we need this legislation.”
Adams said he expects the issue to resurface next year and he believes advocates of the law change are only a few Senate votes shy of passage.
By BRIAN BAKST
Associated Press Writer
Topics Legislation Minnesota
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