2009 House Bill 4244

Expand damages from slow-paying insurance companies

Introduced in the House

Feb. 11, 2009

Introduced by Rep. Mike Simpson (D-65)

To establish that if a person is required to sue an insurance company for its failure to pay benefits in a timely manner, a court may award the insured all legal costs and expenses, and if the insurer acted in bad faith, the greater of triple damages or $10,000.

Referred to the Committee on Insurance

Aug. 19, 2009

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance of the bill as previously described.

The substitute passed by voice vote

Amendment offered by Rep. Cindy Denby (R-47)

To require a person to exhaust "all administrative remedies" before bringing a lawsuit under the provisions of the bill. Having to wait more than 120 days for a ruling by the state insurance commission would be considered "exhausting all administrative remedies".

The amendment failed by voice vote

Amendment offered by Rep. Kevin Green (R-77)

To cap attorney fees awarded under the bill's provsions at one-third of the first $100,000; 15 percent of the amount between $100,000 and $500,000; and 10 percent of the amount between $500,000 and $1 million. Note: Although passed, the amendment was not included in a subsequent substitute version of the bill that was adopted.

The amendment passed 57 to 49 (details)

Amendment offered by Rep. Joan Bauer (D-68)

To clarify the definition of which insurance companies are covered under the bill.

The amendment passed by voice vote

Substitute offered by Rep. Mike Simpson (D-65)

To adopt a substitute version of the bill that is essentially identical to the committee substitute before it was amended. This is a technigue used by the majority to "sweep away" Republican amendments they do not want to defeat for political reasons.

The substitute passed by voice vote

Passed in the House 62 to 44 (details)

Received in the Senate

Aug. 26, 2009

Referred to the Committee on Economic Development and Regulatory Reform