Liability Insurance Reform Act of 1987

Liability Insurance Reform Act of 1987 - Title I: Tort Reform - States that this title shall apply to any civil actions alleging negligence, strict or product liability, intentionally tortious conduct, or professional malpractice. Preempts and supersedes inconsistent State law.

Requires that future damage awards exceeding $500,000 be made by periodic payments. (Allows 50 percent of such award to be made at one time.) Limits damage awards for noneconomic losses to $250,000. Establishes a contingency fee schedule for plaintiffs' attorneys.

Title II: Insurance Industry Reform - Prohibits the cancellation of a liability insurance policy until the end of the policy period. Requires insurance companies to: (1) provide 90 days' written notice of nonrenewal of insurance coverage; (2) demonstrate in writing the material change in the level of risk which caused such nonrenewal; and (3) provide 90 days' written notice if the insurance company intends to increase annual premiums by more than ten percent.

Title III: Council on Liability Insurance Premiums - Establishes a National Citizens' Council to study liability insurance problems. Requires the Council to report to the President and the Congress. Terminates the Council 60 days after the submission of such report.

Authorizes appropriations.