Texas Senate Bill SB1169

Texas 2019 - 86th Regular

Caption

Relating to the payment of insurance deductibles related to property insurance policies; creating criminal offenses.

Impact

The enactment of SB1169 would primarily affect statutes related to property insurance in Texas. By requiring insured individuals to pay their deductibles, the bill aims to prevent practices that could undermine the fairness of the insurance market. It enhances the accountability of both insurers and consumers, as insurers are also required to verify proof of deductible payment before processing claims. This measure is seen as essential for the protection of insurance companies from losses that may arise from manipulated claims, thus promoting a healthier insurance landscape.

Summary

SB1169 is a legislative act aimed at regulating payments for insurance deductibles associated with property insurance policies in Texas. The bill mandates that individuals insured under such policies are required to pay any applicable deductibles on first-party claims. It introduces several sections under the Insurance Code that clarify the responsibilities of insured individuals and the penalties for non-compliance. The primary goal of SB1169 is to establish clearer guidelines regarding the payment of deductibles and to prohibit the circumvention of these laws, thereby maintaining the integrity of the insurance system in Texas.

Contention

Despite its intentions, SB1169 may face opposition regarding its enforcement and the practical implications of its measures. Some stakeholders may argue that the new requirements could create financial strain on consumers, particularly in times of crisis when claims are often filed. The bill's provisions that penalize businesses or individuals for facilitating deductible non-payment may also lead to contention, as this could limit service providers' flexibility. Discussions around SB1169 will likely focus on balancing the enforcement of insurance laws with the economic realities faced by consumers and service providers.