The bill clarifies 2008 legislation prohibiting discretionary clauses in certain plans and insurance policies and providing for the de novo standard of review in any court by:
- Declaring that the legislation should be construed broadly to effectuate its remedial purpose, notwithstanding any contractual or statutory choice-of-law provision to the contrary;
- Nullifying any contract provision that purports to give an insurer or its agent discretionary authority to determine entitlement to benefits;
- Severing a claimant's right to de novo review of policy disputes from the claimant's right to a jury trial of those disputes; and
- Specifying that the commissioner of insurance may adopt rules as necessary to enforce this prohibition.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)