Bill > S2311

This bill strengthens consumer protections in insurance claims by expanding the definition of unfair claims settlement practices and clarifying an insured's right to pursue bad-faith remedies. It amends existing laws to allow individuals to sue insurers for wrongfully and in bad faith refusing to pay or settle claims, and clarifies that such a lawsuit is separate from a breach of contract claim and can be assigned. The bill also broadens the definition of unfair claims practices to include issues like failing to conduct reasonable investigations with qualified individuals, misrepresenting policy provisions, and unreasonably delaying claim payments, specifically adding provisions related to the use of unlicensed individuals in claim handling and the proper handling of auto body repair claims. Furthermore, it establishes a private right of action for individuals harmed by violations of these unfair claims practices, allowing them to recover damages, attorney fees, and potentially enhanced damages if the insurer acted knowingly or recklessly, while also clarifying that this does not apply to mere negligence or good-faith disputes over coverage.

Justice

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