Vote Smart's Synopsis:

Vote to pass a bill that amends the state insurance laws on fair conduct policies.

Highlights:

• Defines “first party claimant” or “claimant” as an individual, corporation, association, partnership or other legal entity asserting an entitlement to benefits owed directly to or on behalf of an insured individual under an insurance policy (Sec. 2).

• Specifies that “insurer” does not include an insurance producer or a public entity (Sec. 2).

• Defines “public entity” as the State, any county, municipality, district, public authority, public agency and political subdivision or public body in the state, including a joint insurance fund of a public entity (Sec. 2).

• Authorizes a claimant to file a civil action in a court of competent jurisdiction against their insurer for the following, including (Sec. 3):

• Unreasonable delay or denial of a claim of payment for benefits under an insurance policy; and

• Any violation of provisions under specified law.

• Establishes that a claimant shall not be required to prove that the insurer’s actions were frequent enough to indicate general business practices (Sec. 3).

• Specifies that if a violation is proven to have occurred then the plaintiff is entitled to the following (Sec. 3):

• Actual damages caused by the violation;

• Prejudgement interests, reasonable attorney fees, and all reasonable litigation expenses; and

• Treble damages.

• Specifies that this act will take effect immediately upon its passage (Sec. 4).

Full Bill Text