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SF 13

A bill for an act relating to the duties of insurers under medical malpractice insurance policies.

2025-2026 Regular Session Introduced by Mark Lofgren

SF 13 requires insurers to negotiate malpractice claims in good faith, protecting healthcare providers from excessive liability and ensuring fair settlements within policy limits.

Subcommittee: Webster, Dickey, and Petersen.
#insurance #insuranceproducers #medicalmalpractice #medicalmalpracticeinsurance #tortlaw
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Bill Summary · SF 13

Summary of SF 13 - Medical Malpractice Insurance Duties

Bill Overview

  • Bill Number: SF 13
  • Title: A bill for an act relating to the duties of insurers under medical malpractice insurance policies.
  • Introduced: January 13, 2025
  • Current Status: Subcommittee: Webster, Dickey, and Petersen
  • Classification: Bill
  • Subject Areas: Insurance, medical malpractice, tort law

Purpose and Intent

The primary purpose of SF 13 is to establish clear obligations for insurance companies that provide medical malpractice insurance to healthcare providers. The bill aims to ensure that insurers negotiate claims in good faith and protect healthcare providers from excessive financial liability when claims are settled within policy limits.

Key Provisions

  1. Good Faith Negotiation Requirement:

    • Insurers must negotiate all claims presented to healthcare providers in good faith.

  2. Settlement Offers:

    • If a claimant offers to settle a claim within the coverage limits of the malpractice insurance policy, the insurer is required to negotiate a settlement.

  3. Liability for Excess Judgments:

    • Should an insurer refuse a settlement offer within policy limits, and the case proceeds to judgment resulting in an amount exceeding those limits, the insurer will be liable for the full judgment amount, regardless of the policy limits.

  4. Cause of Action for Providers:

    • Healthcare providers will have the right to take legal action against their insurers if the insurers fail to negotiate a settlement within the policy limits. This includes the ability to recover costs and reasonable attorney fees incurred by the provider.

Impact

  • Healthcare Providers:

    • The bill is designed to protect healthcare providers from financial risks associated with malpractice claims, ensuring they are not left liable for amounts exceeding their insurance coverage due to insurer negligence.

  • Insurance Companies:

    • Insurers will face increased obligations to negotiate claims and may incur greater financial liability if they fail to act within the stipulated guidelines.

Procedural Timeline

  • January 13, 2025: Bill introduced and referred to the Commerce Committee.
  • January 15, 2025: Assigned to the subcommittee consisting of members Webster, Dickey, and Petersen for further consideration.

Conclusion

SF 13 seeks to enhance the accountability of insurance companies in the medical malpractice sector, ensuring that healthcare providers are treated fairly in the claims process. By mandating good faith negotiations and establishing liability for insurers, the bill aims to create a more equitable environment for both providers and claimants.

Compiled from official sources — confirm details with the bill’s official record.

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