Tom Baker (Penn) and Rick Swedloff (Rutgers-Camden) have posted to SSRN Regulation by Liability Insurance: From Auto to Lawyers Professional Liability. The abstract provides:
Liability insurers use a variety of tools to address adverse selection and moral hazard in insurance relationships. These tools can act on insureds in a manner that can be understood as regulation. We identify seven categories of such regulatory activities: risk-based pricing, underwriting, contract design, claims management,...
