Private right of action; civil actions

(a) Civil actions To recover under covered policies This Act creates a new Federal private cause of action and Federal subject matter jurisdiction for a beneficiary of a covered policy to bring a civil action against the insurer for the covered policy or a related company of the insurer to recover proceeds due under the covered policy or otherwise to enforce any rights under the covered policy. The rule of decision governing the right of a beneficiary to recover under a covered policy shall be the law of the forum State in which the civil action is filed, or Federal common law, at the option of the beneficiary. (b) Nationwide Service of Process For a civil action brought under subsection (a) in a district court of the United States, process may be served in the judicial district where the case is brought or any other judicial district of the United States where the defendant may be found, resides, has an agent, or transacts business. (c) Remedies (1) Damages (A) In general A court shall award to a prevailing beneficiary in a civil action brought under subsection (a)— (i) the amount of the proceeds due under the covered policy; (ii) prejudgment interest on the amount described in clause (i) from the date the amount was due until the date of judgment, calculated at a rate of 6 percent per year, compounded annually; and (iii) any other appropriate relief necessary to enforce rights under the covered policy. (B) Treble damages If a court finds that an insurer or related company of the insurer acted in bad faith, the court shall award damages in an amount equal to 3 times the amount otherwise to be awarded under subparagraph (A). (2) Attorney’s fees and costs A court shall award reasonable attorney’s fees and costs to a prevailing beneficiary in a civil action brought under subsection (a). (d) Limitation A civil action may not be brought under this section on or after the date that is 10 years after the date of enactment of this Act.