A Video Explaining the Law of Unintended Consequences and the Tort of Bad Faith


The Law of Unintended Consequences

Consider Prohibition: probably the most glaring historical example of unintended consequences. People didn’t stop drinking. They just found other ways to indulge, creating a criminal element that increased violent crime and made criminals out of businessmen, made criminals rich, and caused deaths from inexperienced makers of “bathtub gin” that caused violent death on its consumption.

See full video at https://youtu.be/cttSIZPfEk4

If the various states want better cooperation and more prosecution of insurance fraud they must protect those whose assets are in danger if the state fails to convict the fraud perpetrator or the insurer is sued for bad faith for reporting its suspicion to the Fraud Division the states must provide the insurer with complete immunity.

Legislatures who enact SIU laws and regulators who impose SIU regulations, must understand that insurers are not police agencies, not prosecutors, and not equipped to conduct criminal investigations. Therefore, the state should understand that insurers, their SIU investigators, and lawyers need protection from fraud perpetrators who are reported to, and tried but not convicted by the state, from litigation seeking damages from an insurer who simply followed the requirements of the SIU statutes and Regulations.

© 2020 – Barry Zalma

Barry Zalma, Esq., CFE, now limits his practice to service as an insurance consultant  specializing in insurance coverage, insurance claims handling, insurance bad faith and insurance fraud almost equally for insurers and policyholders. He also serves as an arbitrator or mediator for insurance related disputes. He practiced law in California for more than 44 years as an insurance coverage and claims handling lawyer and more than 52 years in the insurance business. He is available at http://www.zalma.com and zalma@zalma.com.

Mr. Zalma is the first recipient of the first annual Claims Magazine/ACE Legend Award.

Over the last 52 years Barry Zalma has dedicated his life to insurance, insurance claims and the need to defeat insurance fraud. He has created the following library of books and other materials to make it possible for insurers and their claims staff to become insurance claims professionals.

Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921

Read posts from Barry Zalma at https://parler.com/profile/Zalma/posts

Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg/

Go to the Insurance Claims Library – https://zalma.com/blog/insurance-claims-library/

Subscribe to e-mail Version of ZIFL, it’s Free! –

Read last two issues of ZIFL here. https://zalma.com/zalmas-insurance-fraud-letter-2/

Go to the Barry Zalma, Inc. web site here https://www.zalma.com/

Listen to my podcast, Zalma on Insurance, at:

https://podcasts.google.com/?q=zalma%20on%20insuranceZalma on Insurance –



This entry was posted in Zalma on Insurance. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.