The upcoming changes to Missouri law should clarify certain rights of claimants, tortfeasors, and insurers going forward. (Photo: Shutterstock)
Effective August 28, 2021, recently enacted Missouri legislation places new limits on covenants not to execute between a claimant and tortfeasor (e.g., contracts that seek to limit recovery to insurance policy proceeds).
The legislation also grants insurers an unconditional right to intervene in any action seeking personal or bodily injury damages against an insured tortfeasor, within identified parameters. The new legislation also prohibits a claimant, tortfeasor, or any other party from using an arbitration award against any liability insurer that did not agree to the arbitration. The legislation provides that an insurer's exercise of rights consistent with the revised sections cannot be bad faith.
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