Modifies provisions relating to time-limited settlement demands to liability insurers
Impact
The changes introduced by SB312 are expected to streamline the settlement process for personal injury claims, potentially reducing the number of disputes that arise over settlement offers. By formalizing the requirements for settlement demands, the bill seeks to balance the interests of claimants who may be looking for appropriate compensation against insurers, who often operate within strict policy limits. This change could have significant implications for how personal injury claims are structured in Missouri, possibly leading to quicker resolutions and fewer protracted legal battles.
Summary
Senate Bill 312 modifies the provisions relating to time-limited settlement demands made to liability insurers. The bill clarifies the definition of ‘extracontractual damages’ and sets specific requirements for a settlement demand to be deemed reasonable. It requires that a written demand for settlements in personal injury or wrongful death claims must be sent via certified mail and remain open for acceptance for at least ninety days, among other stipulations. These conditions aim to standardize the process for settling claims while providing clarity to both claimants and insurers about what constitutes a valid settlement demand.
Contention
Notably, while proponents of SB312 argue that the bill provides necessary clarity and predictability in the settlement process, critics may view these changes as creating additional hurdles for claimants seeking redress. There is concern that the strict requirements for settlement demands could disadvantage individuals who may not have the legal support or expertise to comply with the detailed provisions outlined in the bill. This aspect of the legislation could lead to debates regarding access to justice for those involved in personal injury cases, particularly for unrepresented claimants who might struggle to navigate the new procedures.