SEarlier this year, largely unbeknownst to the general public, Texas Farm Bureau submitted an interesting proposal to the Texas Department of Insurance; lower premiums for the insured in exchange to relinquish suing rights. This proposal would be considered legal and binding insurance policy language and thus, all disputes would be handled solely through the claims process or arbitration.
Last week, rather suspiciously, Texas Farm Bureau rescinded the motion. Even though the request is now seemingly innocuous and off the table, the mere consideration has rattled the insurance industry. To be frank, Texas policy holders have unknowingly dodged an extremely destructive bullet. Here is why:
Arbitration is final. Typically, under the Texas Consumer Bill of Rights, an insured homeowner may take the insurance company to court on suspicion of inadequate compensation for damages or other applicable monies. Under a special ‘low premium’ policy of the said proposal, suing would not be an option and homeowners would only be able to enact their rights to appraisal. The verdict of the appraisers or umpire would be final.
Furthermore, if low premium polices surrendering the right to sue were implemented, they could become standard for all policies in the insurance industry. This scenario is disturbing and warrants consideration.
Now more than ever, it is imperative that consumers safeguard their rights, understand the intentions of high power companies, and speak out when something is not in the best interest of the clientele. The goal of Morgan Elite Specialist Services is to assist our valued customers with their insurance claims and relay beneficial information.