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Punitive damages are financial penalties courts can order beyond regular compensation, meant to punish especially harmful or reckless behavior. This bill would prohibit insurance companies from factoring in the existence or possibility of punitive damages when making underwriting, rating, risk classification, or pricing decisions on policies. It would also limit when an employer, business owner, or supervisor can be held responsible for punitive damages based solely on an employee's or agent's misconduct, requiring a person suing to prove with clear and convincing evidence that the employer itself acted willfully, maliciously, or recklessly, or that it authorized, approved, or was reckless in hiring or keeping that employee — a standard that would also apply to cases involving drunk or drugged driving by an employee. These new rules would take effect May 6, 2026, and would apply only to claims arising on or after that date.