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Bill > H1303


MA H1303

MA H1303
To provide prompt payment following settlement by insurance company


summary

Introduced
02/27/2025
In Committee
02/27/2025
Crossed Over
Passed
Dead

Introduced Session

194th General Court

Bill Summary

Relative to payments following settlements by insurance companies. Financial Services.

AI Summary

This bill amends Chapter 175 of the Massachusetts General Laws by adding a new Section 113A that requires insurance companies to promptly pay settlement amounts to plaintiffs. Specifically, when a legal action for damages has been settled and an insurance company has agreed to cover all or part of the settlement on behalf of a defendant, the insurer must pay the agreed amount to the plaintiff within 21 days after the plaintiff provides a properly executed release document to the defendant. This provision aims to ensure more timely compensation for plaintiffs following the resolution of legal claims, preventing potential delays in payment that could create financial hardship for those who have reached a settlement agreement.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

Joint Committee on Financial Services Hearing (10:00:00 5/13/2025 A-2) (on 05/13/2025)

bill text


bill summary

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bill summary

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bill summary

Document Type Source Location
State Bill Page https://malegislature.gov/Bills/194/H1303
BillText https://malegislature.gov/Bills/194/H1303.pdf
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