Insurance: Trying for Answers

Hoping to reform their beleaguered industry on their own terms, 168 auto-insurance companies last week proposed sweeping revisions in the kind of coverage they now offer. The companies, which write 38% of U.S. auto insurance, belong to the Manhattan-based American Insurance Association, whose president, T. Lawrence Jones, admitted that "there is an immense and growing public problem with the existing system of auto insurance." In presenting its own solutions, however, the A.I.A. met with opposition both within and outside the $10 billion-a-year industry.

The plan, based on a 15-month study of insurance claims in 11,000 auto accidents, was aimed at...

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