I expect someone in the Kentucky legislature to glom on to the idea of sticking insurance companies with potential liability for paying triple the amount of a claim the company denies "unreasonably or negligently." This scheme was signed into law last month in Washington state and is much more political ploy than it is consumer protection.
In fact, costs incurred under this law will just be passed on to policyholders as higher cost of doing business. That means higher premiums.
And of course the lawyers will get paid more. Consumers will lose.
If Kentucky really wanted to lead on consumer protection in insurance, we would eliminate regulation of what specific items policies should cover and charge company officers criminally when they violate the promises made in their policies. Requiring violations to be proven as either "unreasonable" or "negligent" just provides loopholes for bad actors to escape through.
