SB 384 Authorizes an insurer to reserve the right to contest coverage
Sponsor: Scott
LR Number: 1552S.01I Fiscal Note: 1552-01
Committee: Small Business, Insurance & Industrial Relations
Last Action: 3/16/2005 - Hearing Scheduled But Not Heard S Small Business, Insurance & Industrial Relations Committee Journal Page:
Title: Calendar Position:
Effective Date: August 28, 2005

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Current Bill Summary

SB 384 - This act authorizes an insurer to contest the applicability of its coverages by intervening in the underlying action for purposes of having the court determine issues of coverage on the policy and also to agree with its insured to proceed under the terms of the policy while reserving the right to later determine the extent of its coverage. A court must allow the insurer to intervene if the insurer agrees to pay a reasonable fee for legal services rendered on behalf of the insured in defending the action regardless of its outcome, and the court finds that the insurer's request is made in good faith.