Abusive lawsuit prevention gets hearing in Senate

The Senate General Laws Committee heard testimony this week on HCS HB 339 & 714 (DeGroot), a bill that seeks to stop “sweetheart deals” between a plaintiff’s attorney and a defendant against the defendant’s insurance company and presentation of demands for settlement without adequate time to review such demands.

In both cases, compromise language was worked out between AIM members and insurers to ensure rights of insureds are protected while addressing potentially abusive processes allowed under current law. AIM testified in support of the legislation in the House and Senate hearings.

The bill passed the House last week and has a good chance of passing this year.