Relates to coverage for punitive damages and civil penalties

This bill allows most liability insurance policies to cover punitive damages, civil penalties, and other non-compensatory damages (damages meant to punish rather than compensate). It applies to business-related insurance policies but excludes personal lines insurance for individuals using it for non-business purposes and commercial auto liability policies. Coverage is permitted for vicarious liability or gross negligence/reckless conduct, but not for intentional harm, and only if explicitly stated in the policy. The change takes effect prospectively for policies issued after the law's effective date.