Bill > SF13

This bill addresses the responsibilities of insurance companies in medical malpractice cases by establishing new legal requirements for how insurers must handle settlement offers. Specifically, the bill mandates that insurance companies providing professional negligence coverage for health care providers must negotiate claims in good faith. If a claimant offers to settle a claim within the existing policy coverage limits and the insurance company refuses this offer, and the claim subsequently results in a judgment exceeding those limits, the insurance company will be liable for the entire judgment amount, regardless of the original policy limits. The bill further stipulates that if the insurance company fails to negotiate a settlement within the policy limits when such an offer is made, the health care provider can take legal action against the insurer. In such a case, the provider would be entitled to recover all incurred costs and reasonable attorney fees. This legislation aims to incentivize insurance companies to act reasonably and responsibly when handling potential settlement offers in medical malpractice cases, ultimately protecting health care providers from potentially financially devastating legal outcomes.

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https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF13