Bill Would Remove Tort Option for Bad-Faith Cases

A proposed bill would force the state Department of Labor and Regulation to decide whether insurers or employers have acted in bad faith, removing the tort option for claimants. Senate Bill 145 was first read in the Senate on Jan. 24 and is before the Senate Commerce and Energy Committee. It has 23 sponsors in the House and Senate but only one Democrat, Rep. Spencer Hawley, D-Brookings, an insurance agent. SB 145 would allow regulators to award injured workers civil damages not to exceed 200% of the total compensation owed or $30,000. The department also may impose a civil penalty ...