Missouri Senate Bill SB1120

Missouri 2026 Regular Session

• Introduced: 1/7/26
• Refer: 1/15/26

Caption

Modifies provisions relating to time-limited settlement demands to liability insurers

Impact

If enacted, SB1120 would introduce new requirements for settlement demands. Specifically, the bill mandates that these settlement demands must be written, sent via certified mail, and remain open for acceptance for at least ninety days. Additionally, the demands will need to include substantial details, such as the amount of monetary payment requested, the date of injury, and descriptions of known injuries. These requirements are designed to clarify the expectations for both claimants and insurers, potentially improving settlement negotiations.

Summary

Senate Bill 1120 aims to modify the provisions concerning time-limited settlement demands directed at liability insurers. The primary purpose of the bill is to ensure that any settlement demand issued to a tort-feasor's liability insurer includes specific terms and conditions that must be met to be considered a reasonable opportunity for the insurer to settle a claim. This change focuses on personal injury, bodily injury, or wrongful death claims and seeks to establish a more structured process for managing settlement offers.

Contention

There are potential points of contention surrounding the bill. Critics may argue that imposing rigid requirements on settlement demands could delay resolution for claimants, especially in cases where quick settlements are necessary for the injured parties. On the other hand, advocates for the bill suggest that it offers clarity and fairness in the settlement process, protecting insurers from vague or unreasonable settlement proposals that could lead to extracontractual damages claims against them.