House Bill 837: Revamping Civil Remedies with Emphasis on Insurance Adjustments
Discover the transformative alterations within the insurance landscape brought about by House Bill 837, which extensively revises various aspects of civil remedies. Here’s a condensed overview of the insurance-related amendments featured in the bill:
Bad Faith Claims
Definition and Maximum Payouts:
The bill precisely outlines the criteria defining a bad faith claim and sets maximum payout limits that insurance companies must adhere to.
Prohibition of Bad Faith Lawsuits:
Under specific conditions, the bill prohibits the initiation of bad faith lawsuits. Such legal actions are barred if the insurer pays the insured either the requested amount or the policy limits—whichever is less—within 90 days of receiving notice of the claim.
This prohibition is contingent upon the insured providing sufficient evidence to substantiate their claim.
Good Faith Obligations:
Insureds, claimants, and representatives of the insured are now obligated to act in “good faith,” entailing the duty to provide crucial information regarding the claim.
A judge is empowered to assess whether the parties acted in good faith, potentially influencing the damages awarded against the insurer.
Attorney Fees
Calculation Method Change:
The House bill ushers in a fundamental change in the method used to calculate attorney’s fees awarded by the courts.
Elimination of One-Way Attorney Fees:
Notably, one-way attorney fees for specific scenarios are no longer permissible. Lawsuits against surplus lines insurance companies, lawsuits against insurers to enforce an insurance policy, and other specified categories are now excluded from eligibility for one-way attorney fees.
These amendments signify a significant paradigm shift in the insurance landscape, particularly within the context of civil remedies. Stakeholders, including insureds, claimants, insurers, and legal representatives, are encouraged to explore the specifics of House Bill 837 to fully comprehend its nuanced implications.
Disclaimer: The provided information is for general informational purposes only and should not be considered legal advice. For accurate and comprehensive details, it is recommended to refer directly to the official documentation of House Bill 837. Individuals are encouraged to conduct independent research or seek legal counsel for a thorough understanding of the impact of these changes on their specific circumstances. For further inquiries or clarification regarding the implications of House Bill 837, interested parties may contact legal professionals or relevant authorities.
An Experienced Public Adjuster will alway keep up with current legislation.