We have previously discussed the highly anticipated verdict regarding insurance tort reform and the implications it could have on the future of insurance practices. The reform is related to insurance claims and certain prohibited acts and practices in the business of insurance. The issues are once again heating up at the Texas State Capitol as the reform gains traction and seems to be supported primarily by Republican politicians, those presenting the bills, and insurance lobbyists and companies.
According to Insurance Journal, however, the bill is a wolf in sheep’s clothing. While parties backing the reform claim that it will further protect the insured, residential policy holders as well as major companies and business owners are concerned with the ill effects that the bill will cause consumers and are speaking out. Opponents assert that claims will be harder to file, let alone bring any wrongful claims to suit. The bill will also allow insurance companies to issue claims practically at their own discretion, basically throwing out the Prompt Pay Act. (Root, J. (2017, March 02)
There are many aspects to take into account and consider if Senate Bill 10 and House Bill 1774 are passed and adopted. While we try to remain as unbiased as possible, the way our politicians have structured this ‘solution’ makes the fact hard to ignore that the bill favors insurance companies over insured consumers.
As a courtesy, we have attached links to the bills below. We invite you to assess them and express your viewpoints. Your thoughts are important to us! If you happen to feel strongly on any portion of the bill, we urge you to contact your local politicians and representatives, even the capitol, and let them know your stance. Our leaders have the obligation and privilege to listen and take your opinions into account.
Senate Bill 10 – http://www.legis.state.tx.us/tlodocs/85R/billtext/html/SB00010I.htm
House Bill 1774 – http://www.legis.state.tx.us/tlodocs/85R/billtext/html/HB01774I.htm
Root, J. (2017, March 02). Texas Businesses Line Up Against Lt. Governor’s High-Priority Insurance Bill. Retrieved March 06, 2017, from http://www.insurancejournal.com/news/southcentral/2017/03/02/443464.htm