Requires a liability insurer that has an opportunity to settle a claim at or within the policy limits, and refuses to do so, to be liable for any verdict in excess of the insurance policy limits; prohibits the insurer from recovering such excess judgment from the insured.

This bill requires that if a liability insurance company has a chance to settle a claim within the policy limits but chooses not to, it must pay any judgment that exceeds those limits. Additionally, the insurer cannot seek to recover that excess amount from the insured individual. This means that policyholders would be protected from having to pay out of pocket for amounts above their insurance coverage if the insurer fails to settle appropriately.

Supporters of the bill argue that it protects consumers by holding insurance companies accountable for their decisions. They believe it encourages insurers to act in good faith and settle claims fairly, which ultimately benefits policyholders and ensures they are not financially burdened by the insurer's mistakes.

Critics of the bill contend that it could lead to higher insurance premiums as insurers may raise rates to cover potential excess liabilities. They also argue that it might discourage insurers from taking risks on claims, potentially leading to less favorable outcomes for policyholders in the long run.