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Assignment for Chapter 11

In law, fairness implies that the legal system must apply and follow the law that is appropriate to the situation under consideration whereas predictability refers to the fact that the outcome of breaching the law should be as clear as possible. If I were to assign grades to the two based on how the American system performs on fairness and predictability, then I will assign grade B in each case.

Considering the sample states in the GAO report, the American legal system was good in fairness. It followed the law in setting the premium rates to be paid across the various specialties. However, the applicability of the allows the insurance companies to pay dissimilar rates for the same malpractice across the states. This allows some insurers in to pay low rates while some pay relatively high rates. This indicates how different the law is applied in different states across the US. Predictability is also not at its best. It is not possible to predict the outcome of any case. Some cases succeed while others do not based on the factors considered by the courts. As well, the courts give different premiums based on the state and the injury suffered alongside other considerations. Thus, the outcome of breaching the law may not be very clear.

For the American system to improve its grading, there’s need to have uniform standards of paying the premium rates across the US. The law needed to be amended for it to be standard in all the states. There should not be a scenario where some states pay extremely low rates while other pay high rates. With uniform laws on how insurers pay rates, it is possible for the system to improve its grading on fairness and predictability.