Staff Analysis of the Legislation
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HB 303 changes provisions relating to the recovery of a poilcy when an insurer refuses to pay for a loss within 60 days after a demand has been made by the insured and a finding has been made that the refusal was made in bad faith. In these cases, the insurer shall be liable to the insured for damages equal to the applicable policy limits or the principal balance of the judgment rendered against the uninsured motorist in the original tort action, whichever amount is less. If the fact finder determines that the insurer's refusal to pay was made in bad faith, the insurer shall be assessed a penalty of $25,000.00 or 25 percent of the damages, whichever is greater. When an insured has prevailed on a claim, the court has the discretion to hold the insurer liable to the insured for reasonable attorneys fees and expenses of litigation. The bill provides that payment of the damages and postjudgment interest reduce the principal amount of the judgment and the postjudgment interest owed on the judgment. |
