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Action Needed Today: Bad Faith Bill Faces Vote on Pennsylvania Senate Floor

SB 746, originally a bill geared toward physicians’ reporting of drug abuse, was amended in the Judiciary Committee to incorporate bad faith language regarding insurance from Sen. Stewart Greenleaf’s SB 433. The Judiciary Committee adopted the measure, reported the bill, and it had its first reading all within a few hours. The bill was amended last night on the floor, but the new version does nothing to mitigate the ill effects of the bad faith verbiage.

Up for a possible vote today on the Senate floor, NAMIC is urging its members to call and/or email Pennsylvania senators today to express your opposition to the bill.

The legislation will move the decisions of bad faith culpability, attorney’s fees, damages, and interest awarded from the judge’s desk to the jury. There is little doubt that if passed this measure will create instability in judicial outcomes, as well as a shift from efficient justice to litigious attempts for settlements.

NAMIC sent a letter to the Pennsylvania Senate expressing our opposition to the bill on its face, as well as the process of adopting unrelated bad faith language to SB 746 and then passing it through committee without opportunity and notice for interested parties to participate in the public vetting.

Read NAMIC’s issue analysis on first party bad faith.

Direct questions to NAMIC State Affairs Manager Erin Collins.

Posted: Wednesday, June 24, 2009 12:00:00 AM. Modified: Wednesday, June 24, 2009 10:11:55 AM.

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