The bill amends existing laws regarding compensation for economic and noneconomic losses in bodily injury claims. It establishes a limitation on the amount of noneconomic damages that can be awarded, capping it at $500,000 unless the plaintiff suffers severe permanent injuries, in which case there is no cap. Additionally, if a plaintiff experiences a permanent mental injury that significantly impairs their ability to work or maintain a reasonable standard of living, the cap for noneconomic damages is set at $1 million. The bill also allows for unlimited noneconomic damages if the defendant's actions are found to be reckless, grossly negligent, fraudulent, or intentional.

Furthermore, the bill introduces a new provision that prohibits recovery for the first $100,000 of bodily injury and property damage claims arising from motor vehicle accidents if the owner or operator of the vehicle fails to maintain mandatory liability insurance. It also stipulates that if such an uninsured owner or operator seeks damages and is awarded $100,000 or less, they will be responsible for all court costs incurred in the action. The bill clarifies that insurers retain their subrogation rights for claims exceeding the $100,000 threshold. The act is set to take effect on November 1, 2026.