Claim Against Estate of a Decedent - Service of Process
The enactment of SB992 would bring significant changes to existing laws concerning claims against the estates of deceased individuals. By allowing third-party claimants directly to claim against insurance policies without the need for an estate, the bill addresses situations that may complicate the ability of individuals to recover insurance costs associated with accidents involving deceased insured drivers. Furthermore, it aims to streamline litigation and reduce unnecessary delays in accessing insurance funds, particularly benefiting those who incur losses due to accidents.
Senate Bill 992 is designed to amend the procedural requirements for third-party claimants seeking to file a claim against an automobile insurer when the insured party is deceased and no estate is open. The bill mandates that insurance companies accept service of process from third-party claimants under these circumstances, provided the claimant agrees to limit their recovery to the applicable policy limits. This proposal aims to simplify the process for claimants who might otherwise face difficulties in pursuing claims against deceased insured parties without open estates.
While proponents of the bill argue that it facilitates the recovery process for victims in tragic situations, there could be concerns regarding the potential for increased claims and liability exposure for insurance companies. Additionally, the requirement for claimants to cap their recovery at policy limits might be contentious as it could limit the rights of some claimants who feel that the liabilities exceeded these limits. Stakeholders, including insurers and legal representatives, may engage in discussions about the implications of this bill on their operations and the overall insurance landscape.