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Ohio Rejects ALI’s Restatement Of Law, Liability Insurance

09.28.18

(Article from Insurance Law Alert, September 2018)

For more information, please visit the Insurance Law Alert Resource Center

In May 2018, the American Law Institute published the first Restatement of the Law of Liability Insurance, a work that has been criticized in some quarters for failing to restate existing law.

In an unprecedented move, Ohio expressly rejected the Restatement, deeming it not authoritative under Ohio law and against Ohio public policy.  See Ohio Rev. Code Ann. § 3901.82.  The legislation states that the Restatement of the Law of Liability Insurance “does not constitute the public policy of this state and is not an appropriate subject of notice.”

It remains to be seen whether additional states will follow suit, and whether the new Ohio legislation will face any judicial challenges.  We will keep you posted on this and other related matters.