999. (a) It is declared to be the public policy of the State of California that prompt settlements of civil actions and claims are encouraged as beneficial to claimants, policyholders, and insurers.
(b) For purposes of this section, the following definitions apply:
(1) “Extracontractual damages” means any amount of damage that exceeds the total available limit of liability insurance for all of a liability insurer’s liability insurance policies applicable to a claim for property damage, personal injury, bodily injury, or wrongful death.
(2) “Time-limited demand” means an offer prior to the filing of the complaint or demand for arbitration to settle any cause of action or a claim for personal injury, property damage, bodily injury, or wrongful death made by or on behalf of a claimant to a tortfeasor with a liability insurance policy for purposes of settling the claim against the tortfeasor within the insurer’s limit of liability insurance, which by its terms must be accepted within a specified period of time.
(Added by Stats. 2022, Ch. 719, Sec. 1. (SB 1155) Effective January 1, 2023.)