This bill amends the Insurance Code to establish requirements relating to policy-limit demands and disclosures in third-party liability claims related to motor vehicle liability.
This bill:
- establishes requirements for the content of policy-limit demand letters from a claimant to a liability insurance carrier;
- establishes requirements for correspondence from a claimant or a claimant's legal counsel to an unrepresented insured;
- requires a liability insurance carrier to provide written disclosure to the insured regarding defense and indemnification;
- addresses the effect of a disclosure and the consequences of noncompliance; and
- preserves existing rights and remedies.

Statutes affected:
Introduced:
Substitute #1: