This bill establishes new standards for third-party claimants when they deliver a written time-limited demand to an insurer. It mandates that third-party claimants must provide all available and supporting documents, records, and information to the insurer at the time of the demand. The legislation aims to ensure that insurers have a fair and reasonable opportunity to investigate and evaluate claims without facing the risk of being accused of unfair claim settlement practices or insurance bad faith.

Additionally, the bill seeks to protect insurers from incurring additional liability beyond the limits set in the insurance policy while promoting fair and reasonable settlement of claims. By allowing insurers adequate time to assess claims, the bill aims to facilitate prompt and fair settlements, ultimately benefiting policyholders.