Vote Smart's Synopsis:

Vote to pass a bill that restructures arbitration award guidelines.

Highlights:

• Defines "insurer" as any entity authorized to transact liability insurance business in this state including, but not limited to, any liability insurance company organized, incorporated, or doing business under the provisions of chapter 379, any entity formed under section 537.620, any entity that is subject to sections 537.700 to 537.756, or any entity that provides risk management services to any public or private entity (Sec. A-3).

• Establishes any arbitration award or any judgment or decree entered on an arbitration award shall not be binding on any liability insurer, cannot be admissible in evidence in any lawsuit against any liability insurer for any party to an arbitration award, and shall not provide the basis for any judgment or decree, including any garnishment, against any liability insurer, unless the liability insurer has agreed in writing to the arbitration proceeding (Sec. A-2).

• Establishes any person having an unliquidated claim for damages against a tort-feasor, on account of personal injuries, bodily injuries, or death may enter into a contract with such tort-feasor or any insurer on his or her behalf or both if the insurer has refused to withdraw a reservation of rights or declined coverage for such unliquidated claim (Sec. 537.065.1).

• Specifies if any action seeking a judgment on the claim against the tort-feasor is pending at the time of the execution of any contract entered into under this section, then, within 30 days after the execution, the tort-feasor will provide his or her insurer or insurers with a copy of the executed contract and a copy of any such action (Sec. 537.065.2).

• Prohibits a judgment from being entered against any tort-feasor after such tort-feasor has entered into a contract under this section for at least 30 days after the insurer or insurers have received written notice (Sec. 537.065.3).

• Requires any insurer or insurers who receive notice under this section to have the unconditional right to intervene in any pending civil action involving the claim for damages within 30 days after receipt of such notice (Sec. 537.065.4).

• Specifies All terms of any covenant not to execute or of any contract to limit recovery to specified assets, regardless of whether it is referred to as a contract under this section, will be in writing and signed by the parties to the covenant or contract (Sec. 537.065.6).

• Specifies in any such action for bad faith, any agreement between the tort-feasor and insured, including any contract under this section, shall be admissible in evidence (Sec. Sec. 537.065.7).

Full Bill Text