Relating to the establishment and operation of a disaster recovery insurance claims mediation program.
Impact
This bill would amend Chapter 542 of the Insurance Code, adding a new subchapter that outlines the processes for mediation, claim definitions, and participant roles. It emphasizes promoting negotiations between insured parties and their insurers and encourages the use of expert consultations, such as meteorologists and structural engineers, to assess damages accurately. A critical component of the bill is that it applies only to claims involving residential property that are denied or disputed under existing policies and requires a minimum loss threshold of $1,000 with a minimum disputed amount of $500 after deductibles.
Summary
House Bill 2540 aims to establish a Disaster Recovery Insurance Claims Mediation Program in Texas, addressing unresolved residential property insurance claims arising from disasters declared by the president of the United States. The bill proposes a non-adversarial mediation process to facilitate timely and fair resolution of disputes between insured property owners and their insurers, particularly in cases related to severe weather events like hurricanes, cyclones, and tornadoes. The program is designed to resolve issues pertaining to insurance claims efficiently, thereby alleviating the burden faced by claimants after devastating incidents.
Contention
Among notable aspects of HB2540, there is concern regarding the confidentiality of mediation proceedings and the roles of the parties involved, including mediators' qualifications and administration of the program by the Texas Department of Insurance. While the mediation is designed to encourage cooperation, critics may raise concerns about the implications for claimants' rights to pursue litigation if mediation fails. The bill provides for the tolling of litigation timelines during mediation periods, which could affect how quickly parties seek resolution through the courts after mediation attempts.
Notable_points
The program is intended to support witnesses and experts in mediations, upholding confidentiality to protect sensitive information. The structure of fees associated with mediation conferences is clearly defined, including provisions for cancellations and missed appointments. The bill will empower claimants and promote a more equitable resolution process, but its effectiveness and impact will rely on implementation and acceptance by both insurers and insured homeowners.
Relating to state and local government responses to a pandemic disaster, including the establishment of the Pandemic Disaster Legislative Oversight Committee.
Relating to the establishment of the Texas Energy Insurance Program and other funding mechanisms to support the construction and operation of electric generating facilities.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to the establishment of the Texas Parental Empowerment Program and an insurance premium tax credit for contributions made for purposes of that program.
Relating to funding of excess losses and operating expenses of the Texas Windstorm Insurance Association; authorizing an assessment; authorizing a surcharge.
Relating to mediation of out-of-network health benefit claim disputes concerning enrollees, facility-based physicians, and certain health benefit plans; imposing an administrative penalty.