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When someone is injured in a car accident and seeks to settle a claim up to the at-fault driver's insurance policy limit, this bill establishes new rules for how that process must work. Demand letters sent to an insurance company must include specific information — a description of the incident, injuries, the legal basis for the claim, and supporting medical records and bills — and must give the insurer at least 30 days to respond. If the insurer declines to pay and the injured party plans to sue the at-fault driver directly, any written communication to that driver (if they don't have their own attorney) must clearly explain the claims being made, warn that the injured party's interests are adverse to theirs, and notify them of their right to consult independent legal counsel. The insurer, in turn, must provide the driver a written disclosure within 30 days explaining whether it will defend them and whether it will cover any judgment — including whether coverage is capped at the policy limit or could extend beyond it.