MO HB1344

Establishes requirements for insurers to communicate reservations of rights in writing within 60 days of receiving notice of a claim and becoming aware of a basis for the reservation, with specific statement of the basis.

Prohibits reservations of rights from constituting evidence of breach of duty owed to the insured, and abrogates prior Missouri court decisions that allowed such findings.

Limits liability for breach of duty to defend to the applicable policy limits plus reasonable attorney fees and court costs, abrogating the Columbia Casualty Co. v. HIAR Holding decision that allowed damages exceeding policy limits.

Grants insurers an unconditional right to intervene in lawsuits where they offer or provide a defense to the insured.

Restricts garnishment of insurance proceeds to cases where the judgment resulted from a contested adversarial proceeding and requires insurers may demand jury trial on damages if coverage is provided but no contested proceeding occurred.