Iowa HF219 mandates insurers to negotiate in good faith on medical malpractice claims within policy limits.

Iowa HF219 establishes that insurers must negotiate in good faith all claims presented to health care providers under medical malpractice insurance policies. If a claimant offers to settle within the policy limits and the insurer refuses, the insurer becomes liable for the full judgment amount if the claim exceeds the policy limit. The insurer has a duty to negotiate a settlement within policy limits if an offer is made by the claimant. Failure to do so allows the health care provider to take legal action against the insurer, including recovery of costs and reasonable attorney fees.

Iowa HF219 mandates insurers to negotiate in good faith on medical malpractice claims within policy limits.

Iowa HF219 establishes that insurers must negotiate in good faith all claims presented to health care providers under medical malpractice insurance policies. If a claimant offers to settle within the policy limits and the insurer refuses, the insurer becomes liable for the full judgment amount if the claim exceeds the policy limit. The insurer has a duty to negotiate a settlement within policy limits if an offer is made by the claimant. Failure to do so allows the health care provider to take legal action against the insurer, including recovery of costs and reasonable attorney fees.