SENATE BILL REPORT

SB 5547

BYSenators Garrett and Moore

Requiring notification to insureds by insurance companies of impending claim settlements.

Senate Committee on Financial Institutions

Senate Hearing Date(s):February 17, 1987

Senate Staff:Phil Sorensen (786-7470)

AS OF FEBRUARY 13, 1987

BACKGROUND:

The majority of liability insurance policies permit insurance companies to settle claims without notifying the policy holder.  Generally, notification provisions may be found in certain professional malpractice liability policies.

SUMMARY:

All newly issued or renegotiated liability insurance contracts shall include a provision requiring insurance companies to notify the insured of pending claims, and to consult with the insured prior to settlement.

Fiscal Note:      none requested