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