SF 13: Relating to the duties of insurers under medical malpractice insurance policies

What it does

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.

Senate subcommittee · named January 15, 2025

• Sen. Scott Webster (R) · scott.webster@legis.iowa.gov
• Sen. Adrian Dickey (R) · adrian.dickey@legis.iowa.gov
• Sen. Janet Petersen (D) · janet.petersen@legis.iowa.gov

Lobbying · 3 for, 1 against

For: Iowa Academy of Trial Lawyers; Iowa Association for Justice; Iowa Integrated Health Planning and Advisory Council

Against: Iowa Insurance Associates

In plain words

1. January 13, 2025Filed in the Senate and sent to the Commerce committee
2. January 15, 2025Senate subcommittee named: Webster, Dickey and Petersen