Modifies provisions relating to settlement demands to liability insurers
If enacted, SB903 would fundamentally alter the way settlement demands are addressed under Missouri law. It introduces specific requirements regarding the delivery and content of settlement demands, which advocates argue would enhance fairness in negotiations. Supporters of the bill claim it could reduce litigation and expedite resolution times by providing clearer expectations and responsibilities for both claimants and insurers. However, opponents of the bill argue that these stringent requirements could hinder claimants’ ability to negotiate effectively and potentially limit their legal recourse if insurers do not respond correctly.
Senate Bill 903 aims to modify the provisions related to settlement demands made to liability insurers in cases involving personal injury, bodily injury, or wrongful death. The bill intends to create a more structured approach to how settlement demands are presented and handled by requiring specific criteria for these demands to be deemed reasonable. This includes the necessity for written demands, sending them via certified mail, and maintaining them for a period before acceptance. The overall goal of the bill is to streamline the settlement process and ensure clarity regarding insurer obligations and claimant expectations.
Notable points of contention surrounding SB903 include the balance between protecting insurers and ensuring that claimants are not disadvantaged in the settlement negotiation process. Critics highlight concerns that the bill's provisions may overly favor insurers by imposing conditions that could be difficult for claimants to meet, effectively weakening their rights. Additionally, there is apprehension regarding the extent to which the bill may limit claims for extracontractual damages if settlement demands do not adhere to the stringent requirements outlined, raising questions about the impact of this legislation on plaintiffs' rights and access to justice.