Bill Text: IA SF13 | 2025-2026 | 91st General Assembly | Introduced
Bill Title: A bill for an act relating to the duties of insurers under medical malpractice insurance policies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-15 - Subcommittee: Webster, Dickey, and Petersen. S.J. 90. [SF13 Detail]
Download: Iowa-2025-SF13-Introduced.html
Senate
File
13
-
Introduced
SENATE
FILE
13
BY
LOFGREN
A
BILL
FOR
An
Act
relating
to
the
duties
of
insurers
under
medical
1
malpractice
insurance
policies.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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13
Section
1.
NEW
SECTION
.
507B.4D
Medical
malpractice
policy
1
limit
——
insurer
liability.
2
An
insurance
company
insuring
a
health
care
provider,
as
3
defined
in
section
135P.1,
against
professional
negligence
4
shall
at
all
times
negotiate
in
good
faith
all
claims
presented
5
to
the
provider.
If
a
claimant
offers
to
settle
a
claim
6
within
the
professional
negligence
insurance
policy
coverage
7
limits
and
the
insurance
company
refuses
or
declines
the
8
offer
and
the
claim
proceeds
to
judgment
in
excess
of
the
9
insurance
policy
coverage
limits,
the
insurance
company
shall
10
be
liable
for
the
full
amount
of
the
judgment
regardless
11
of
the
existing
insurance
policy
coverage
limitation.
The
12
insurance
company
has
a
duty
to
negotiate
a
settlement
within
13
the
policy
limits
if
an
offer
is
made
by
a
claimant
at
or
14
within
the
policy
limits.
If
the
insurance
company
does
not
15
do
so,
the
health
care
provider
shall
have
a
cause
of
action
16
against
the
insurance
company
for
the
failure
to
negotiate
a
17
settlement
within
the
policy
limits.
The
damages
shall
include
18
the
recovery
of
all
costs
the
health
care
provider
incurs
and
19
reasonable
attorney
fees.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
provides
that
an
insurance
company
insuring
a
24
health
care
provider
against
professional
negligence
shall
25
negotiate
in
good
faith
all
claims
presented
to
the
provider.
26
If
a
claimant
offers
to
settle
within
the
policy
limits
and
the
27
insurer
refuses
or
declines
the
offer
and
the
claim
proceeds
to
28
judgment
in
excess
of
the
policy
limit,
the
insurance
company
29
is
liable
for
the
full
amount
regardless
of
policy
limitation.
30
The
insurance
company
has
a
duty
to
negotiate
a
settlement
31
within
policy
limits
if
an
offer
has
been
made
by
the
claimant
32
at
or
within
the
policy
limits.
If
the
insurance
company
33
fails
to
do
so,
the
health
care
provider
has
a
cause
of
action
34
against
the
insurance
company.
35
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