Substitute House Bill No. 6596
Substitute House Bill No. 6596
PUBLIC ACT NO. 97-58
AN ACT CONCERNING COMMUNICATIONS BY INSURERS,
INTEREST RECOVERABLE IN NEGLIGENCE ACTIONS,
PAYMENT OF SETTLEMENTS AND SUBROGATION RIGHTS IN
UNDERINSURED MOTORIST CASES.
Be it enacted by the Senate and House of
Representatives in General Assembly convened:
Section 1. (NEW) (a) No insurer licensed to
transact business in this state may, on behalf of
itself or its insured, send or knowingly permit to
be sent any written communication or make any oral
statement to any person known or believed to have
a claim for bodily injury or wrongful death
against one of its insureds that affirmatively
advises against the need for or discourages the
retention of an attorney to represent the interest
of such person in prosecuting or settling such
bodily injury or wrongful death claim.
(b) If any insurer or any employee of an
insurer makes a written or oral communication in
violation of subsection (a) of this section, the
Insurance Commissioner, after reasonable notice
and an opportunity for a hearing, may impose
sanctions pursuant to title 38a of the general
statutes, except chapter 704 of the general
statutes, including, but not limited to, the
imposition of civil penalties.
(c) An insurer shall be deemed to be in
compliance with subsection (a) of this section
with respect to any written communication if the
written communication in question has been
approved, prior to its use, by the Insurance
Commissioner who has determined that the proposed
written communication does not violate said
subsection (a).
Sec. 2. Section 37-3b of the general statutes
is repealed and the following is substituted in
lieu thereof:
(a) For a cause of action arising on or after
[October 1, 1981] THE EFFECTIVE DATE OF THIS ACT,
interest at the rate of ten per cent a year, and
no more, [may] SHALL be recovered and allowed in
any action to recover damages for injury to the
person, or to real or personal property, caused by
negligence, computed from the date THAT IS TWENTY
DAYS AFTER THE DATE of judgment OR THE DATE THAT
IS NINETY DAYS AFTER THE DATE OF VERDICT,
WHICHEVER IS EARLIER, UPON THE AMOUNT OF THE
JUDGMENT.
(b) IF ANY PLAINTIFF IN SUCH ACTION FILES A
POST-VERDICT OR POST-JUDGMENT MOTION OR AN APPEAL,
THE RECOVERY OF INTEREST BY SUCH PLAINTIFF SHALL
BE TOLLED AND INTEREST SHALL NOT BE ADDED TO THE
JUDGMENT FOR THE PERIOD THAT SUCH POST-VERDICT OR
POST-JUDGMENT MOTION OR APPEAL IS PENDING BEFORE
THE COURT. THE PROVISIONS OF THIS SUBSECTION SHALL
NOT APPLY IF THE REASON FOR THE FILING OF A
POST-VERDICT OR POST-JUDGMENT MOTION OR APPEAL BY
THE PLAINTIFF IS TO REPLY TO OR ANSWER A MOTION OR
APPEAL FILED BY A DEFENDANT.
Sec. 3. (NEW) (a) When an action to recover
damages has been settled, any settling defendant
shall tender all sums due from such settling
defendant to any settling plaintiff or such
plaintiff's agent not later than thirty days after
receipt by the person or office designated in
writing to the settling plaintiff or such
plaintiff's agent by the settling defendant at the
time of settlement of a duly executed release and
a withdrawal discontinuing any court action, if
any such action is pending, that are tendered by
such settling plaintiff or plaintiff's agent and
are executed by or on behalf of the settling
plaintiff. If no such person or office is so
designated, a settling plaintiff may tender such
settlement documents to the settling defendant's
attorney or the representative of the settling
defendant's insurer with whom the settlement
agreement was reached and such settling defendant
shall tender all sums due from such settling
defendant to any settling plaintiff or such
plaintiff's agent not later than thirty days after
receipt of such settlement documents by the
settling defendant's attorney or the
representative of the settling defendant's
insurer.
(b) In an action that requires judicial
approval of the settlement, the plaintiff shall
also tender a copy of the order of the probate
court or other order approving such settlement
with the duly executed release and withdrawal
discontinuing any pending court action executed on
behalf of the plaintiff.
(c) In the event that a settling defendant or
insurer fails to promptly tender all sums as
required by subsection (a) of this section, a
default judgment shall be entered by the court on
behalf of any unpaid plaintiff against such
defendant twenty days after such plaintiff files a
motion for a default judgment with the court and
serves such motion upon the representative of the
insurer with whom the settlement was reached or
the defendant with whom the settlement was
reached. Such motion shall be accompanied by an
affidavit executed by the plaintiff or the
plaintiff's attorney setting forth the terms of
such settlement with supporting documentation
attached.
(d) Any insurer or defendant with whom the
settlement was reached that fails to tender
settlement proceeds within the time limit set
forth in this section shall be liable for interest
at a rate of twelve per cent a year on the amount
of such settlement proceeds computed from the date
such time limit expired.
(e) As used in this section, "tender" means
either to personally deliver or cause to be
delivered or to mail by registered or certified
mail, return receipt requested. An insurer or a
defendant may otherwise prove tender by presenting
evidence that the settlement sums due from such
insurer or such defendant were received by the
settling plaintiff or such plaintiff's agent.
Sec. 4. (NEW) No insurer providing
underinsured motorist coverage as required under
title 38a of the general statutes shall have any
right of subrogation against the owner or operator
of the underinsured motor vehicle for underinsured
motorist benefits paid or payable by the insurer.
Sec. 5. This act shall take effect from its
passage, except that section 3 shall take effect
October 1, 1997 and section 1 shall take effect
January 1, 1998, and section 4 shall be applicable
to any claim or cause of action pending on or
brought after March 19, 1996.
Approved May 27, 1997