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

This bill requires insurers to negotiate medical malpractice settlement offers within policy limits in good faith. If an insurer refuses a claimant's settlement offer at or below the policy limit and a court later awards more than the limit, the insurer must pay the full judgment amount. Health care providers who face excessive judgments due to an insurer's refusal to negotiate can sue the insurer for damages, including legal fees. The bill directly affects medical providers (by protecting them from uncovered costs) and insurers (by imposing new liability for settlement refusal).