HB437--SETTLEMENTDEMANDS
SPONSOR: Hardwick
COMMITTEEACTION:Voted"DoPass"bytheStandingCommitteeon
Commercebyavoteof9to1.
Thisbillreplacestheterm"time-limiteddemand"with"settlement
demand". Thebillspecifiesthat,inanylawsuitallegingdamages
outsideofwhatiscoveredinthecontractagainstthetortfeasor's
liabilityinsurer,anypriorsettlementdemandtosettleaclaim
willnotbeconsideredtohavebeenareasonableopportunityto
settletheclaimunlessthedemandwasinwriting,referenced
Section537.058,RSMo,wassentcertifiedmail,remainedopenfor
acceptancebytheliabilityinsurerforatleast90daysfromthe
datethedemandwasreceivedbytheinsurer,andcontainedcertain
materialterms,describedinthebill.
ThisbillisthesameasHB2277(2024)andHB1009(2023).
PROPONENTS: Supporterssaythatthepurposeofthebillisto
facilitatesettlementoftheliabilityclaimsforpolicylimits
withoutputtinginsurersonthehookforbadfaithclaims.
Policyholders, businesses,andindividualswhopurchaseliability
insuranceneedtoprotectthemselvesfrombadfaithlawsuits. This
billseekstoclosealoopholeinthelawthatwaspassedfewyears
ago.Itnowprovidesfora90-daytimeperiodfortheinsurerto
respondtoawrittensettlementdemandandlevelstheplayingfield
forinsurancecompanies. Missourishouldalignitselfwithother
statesandapplythestatuteinafairandreasonablemannertothe
parties.
TestifyinginpersonforthebillwereRepresentative Hardwick;
NationalFederationofIndependentBusiness;ClayCrawford,MODL,
MIC,ShelterInsurance;MissouriInsuranceCoalition;Missouri
ChamberofCommerceandIndustry;AssociatedIndustriesof
Missouri;AmericanPropertyCasualtyInsuranceAssociation.
OPPONENTS: Thosewhoopposethebillsaythatitaffectsan
individual'sabilitytosettletheclaimwithoutalawyerand
resultsinadelayinthepaymentofclaims.Thebadfaithrelates
tofraudfromtheinsurancecompanieswhohavenorepercussions.
Insurancecompanieshaveanaffirmativedutytogettheclaim
resolved. Thebillhasatimelimitandalsoalistofitemsthat
mustbeincludedinthesettlementdemandthattheaverageperson
wouldn'tbeawareof.
TestifyinginpersonagainstthebillwereArnieDienoff;Bailey
Geller,MissouriAssociationofTrialAttorneys. Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonyandwitnessestestifyingonlinecanbefound
underTestimonyonthebillpageontheHousewebsite.