- (1) A member insurer, the FAIR plan association and its agents or employees, the board of directors, and the commissioner or the commissioner's representatives are immune for any action taken by them in the performance of their powers and duties under this part 18.
(2)
- (a) The exclusive causes of action and remedies available to a policyholder of a FAIR plan policy against the association is for breach of contract or breach of the common law covenant of good faith and fair dealing.
- (b) A claim for breach of the common law covenant of good faith and fair dealing against the association requires proof that the association acted unreasonably and that the association knew or recklessly disregarded that the association's actions were unreasonable.
- (c) Damages in an action for a breach of the covenant of good faith and fair dealing are limited to compensatory damages for economic and noneconomic losses. A court may award punitive damages only if the association's breach was accompanied by circumstances of fraud, malice, or willful and wanton conduct.
- (d) If a policyholder successfully proves that the association breached the covenant of good faith and fair dealing, the policyholder is entitled to attorney fees and costs. If the court finds that an action brought pursuant to this section was frivolous, as provided in article 17 of title 13, the court shall award costs and attorney fees to the association.
Source: L. 2025: Entire section added, (HB 25-1205), ch. 81, p. 339, § 2, effective April 17.