Bill
Bill > HF219
IA HF219
A bill for an act relating to the duties of insurers under medical malpractice insurance policies.
summary
Introduced
02/06/2025
02/06/2025
In Committee
02/06/2025
02/06/2025
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill provides that an insurance company insuring a health care provider against professional negligence shall negotiate in good faith all claims presented to the provider. If a claimant offers to settle within the policy limits and the insurer refuses or declines the offer and the claim proceeds to judgment in excess of the policy limit, the insurance company is liable for the full amount regardless of policy limitation. The insurance company has a duty to negotiate a settlement within policy limits if an offer has been made by the claimant at or within the policy limits. If the insurance company fails to do so, the health care provider has a cause of action against the insurance company.
AI Summary
This bill introduces new legal requirements for insurance companies that provide medical malpractice coverage to healthcare providers. Specifically, the bill mandates that insurance companies must negotiate claims in good faith and imposes significant financial consequences if they fail to do so. If a claimant (the person filing the claim) offers to settle a case within the policy's coverage limits and the insurance company refuses, and the case subsequently results in a judgment that exceeds those limits, the insurance company becomes liable for the entire judgment amount, regardless of the original policy limits. Furthermore, the bill gives healthcare providers the right to sue their insurance company if the insurer does not negotiate a settlement within the policy limits when such an opportunity exists. If successful in such a lawsuit, the healthcare provider can recover all incurred costs and reasonable attorney fees. This legislation aims to incentivize insurance companies to act reasonably and in good faith when handling medical malpractice claims, potentially protecting healthcare providers from excessive financial exposure.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, referred to Commerce. H.J. 254. (on 02/06/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF219 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/HF219.html |
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