California Legislature Considers Personal, Professional Liability Issues

June 22, 2009

The California Legislature is scheduled to hear at least two bills this week pertaining to insurance.

SB 39 Torts: Personal Liability Immunity would clarify that disaster service workers who perform disaster services during a state of emergency are not liable for civil damages resulting from an act or omission while performing disaster services other than an act or omission that is willful. According to the bill text, existing law provides that no disaster worker who is performing disaster services during a state of war emergency, a state of emergency, or a local emergency shall be liable for civil damages on account of personal injury to or death of any person or property.

SB 119 Professional Liability Insurers: Bad Faith would extend for two-years the qualified immunity for insurance companies who make good faith statements regarding notices of nonrenewal. Existing law prohibits the bringing of an action against an insurer issuing
professional liability insurance policies to health care providers
for statements made in bad faith unless the statement was
made under a specified circumstance. Under existing law, that
provision is repealed as of Jan. 1, 2011, unless another statute
deletes or extends that date. This bill would extend that
date to Jan. 1, 2013.

Source: California Legislature

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