Bill
HF 219
HF 219 mandates insurers to negotiate medical malpractice claims in good faith, protecting healthcare providers from excessive liabilities and ensuring fair settlement offers.
Bill Number: HF 219
Title: A bill for an act relating to the duties of insurers under medical malpractice insurance policies.
Status: Introduced, referred to Commerce
Introduced Date: February 06, 2025
Classification: Bill
Subject: Insurance, medical malpractice, medical malpractice insurance, tort law
Bill HF 219 aims to establish clear obligations for insurance companies that provide medical malpractice insurance to healthcare providers. The primary intent is to ensure that insurers negotiate claims in good faith and protect healthcare providers from excessive liability when a settlement offer is made within policy limits.
Good Faith Negotiation: Insurers must negotiate all claims presented to healthcare providers in good faith.
Settlement Offers: If a claimant offers to settle a claim within the coverage limits of the malpractice insurance policy, the insurer is required to consider this offer seriously.
Liability for Excess Judgments: Should an insurer refuse a settlement offer and the case proceeds to judgment resulting in an amount exceeding the policy limits, the insurer will be liable for the full judgment amount, regardless of the policy's coverage limits.
Cause of Action for Providers: Healthcare providers will have the right to take legal action against their insurers if the insurer fails to negotiate a settlement within the policy limits. This includes recovering costs incurred and reasonable attorney fees.
Healthcare Providers: The bill directly affects healthcare providers by providing them with greater protection against potential financial losses due to insurer negligence in negotiating settlements.
Insurance Companies: Insurers will face increased responsibilities and potential liabilities, which may influence their claims handling processes and overall risk management strategies.
HF 219 seeks to enhance the accountability of insurance companies in the medical malpractice sector by mandating good faith negotiations and protecting healthcare providers from excessive liabilities. This bill, if enacted, could significantly alter the landscape of medical malpractice insurance and the relationship between insurers and healthcare providers.
Compiled from official sources — confirm details with the bill’s official record.
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