Montana Governor Greg Gianforte has approved three legal reform measures intended to provide consumer protections and disclosures and reduce frivolous lawsuits with the ultimate goal of lowering costs and increasing the availability of insurance.
“We praise Gov. Gianforte and the Montana Legislature to approve these legal reform measures that will benefit and protect consumers and businesses. Today, plaintiffs’ lawyers often use many abusive tactics that turn the civil justice system into a commodity market that favors the interests of third parties rather than victims,” said Lyn Elliott, assistant vice president for state government relations for American Property Casualty Insurance. Association.
The legislation signed includes:
- SB 165: Provides for insurance claims cooperation/affirmative defense for insurers, and the elimination of third party common law bad faith in Montana.
- SB 236: Requires a time-limited disposition of demand letters that reasonably describe the claim, include relevant records, and allow 60 days for receipt. Require claimants to provide reasonable records and information that insurers need for timely, reasonable settlement of claims.
- SB 269: Requires third party litigation financing entities to disclose their involvement to all parties and the court. It limits the interest rates TPLFs can charge plaintiffs, limits the portion of recovery TPLFs can obtain from plaintiffs and creates liability for TPLFs for court-ordered costs or penalties against plaintiffs. .
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