American Property Casualty Insurance Association: Montana Governor and Legislature Approve Strong Legal Reform Package

HELENA, Montana, May 12 (TNSgov) -- The American Property Casualty Insurance Association issued the following news release:

With a stroke of his pen, Montana Governor Greg Gianforte (R) approved three important legal reform measures that will provide critical consumer protections and disclosures with the long-term impact of reducing frivolous lawsuits, lowering costs, and increasing the availability of insurance for consumers and businesses, reported the American Property Casualty Insurance Association (APCIA). Gov. Gianforte signed SB 165, SB 236, and SB 269.

"We applaud Gov. Gianforte and the Montana Legislature for approving these legal reform measures that will benefit and protect both consumers and businesses. Today, plaintiff lawyers often use a host of abusive tactics that turn the civil justice system into a commodities market supporting third parties' interests rather than the victims'," said Lyn Elliott, APCIA assistant vice president for state government relations. "These bills will bring important disclosures and standards to curb these tactics. Left unchecked these tactics strip away fairness in the legal system and drive-up costs for every American family, individual and business. According to the U.S. Chamber Institute for Legal Reform, the average American household pays more than a $3,600 "tort tax" due to unnecessary and abusive litigation that raises the costs of products and services."

The legislation signed into law includes:

SB 165: Third Party Bad Faith - Provides for insurance claims cooperation/affirmative defense for insurers, and the elimination of third-party common law bad faith in Montana!

SB 236: Time Limited Demand - Trial lawyers frequently abuse time-limited settlement demand letters and withhold information necessary for insurance carriers to settle claims fairly and expeditiously. This legislation, among other things:

Requires that time-limited settlement demand letters reasonably describe the claim, include relevant records, and allow 60 days for acceptance.

* Requires claimants provide reasonable records and information insurers need for timely, reasonable claims settlement.

SB 269: Third Party Litigation Financing (TPLF) - The legislation, among other things:

* Requires TPLFs to disclose their involvement to all parties and the court.

* Limits interest rates TPLFs can charge plaintiffs.

* Caps the share of recovery TPLFs can take from plaintiffs.

* Creates TPLF liability for court-ordered costs or penalties against the plaintiff.

"Everyone benefits from a balanced civil justice system - one that is fair to all participants, promptly resolves legitimate claims and increases the certainty and predictability for all litigants, said Elliott. "These bills just signed into law will provide fairness, transparency, and protection for all Montana consumers."

The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/75933/