Texas House Bill HB1732

Texas 2015 - 84th Regular

Caption

Relating to dispute resolution for certain claims arising under insurance policies issued by the Fair Access to Insurance Requirements (FAIR) Plan Association; authorizing fees.

Impact

This bill will lead to changes in the Insurance Code regarding how claims are handled under the FAIR Plan. It emphasizes timely notifications and structured processes for dispute resolution, requiring insured individuals to file claims within strict deadlines. The establishment of an ombudsman program is also notable, facilitating better communication and assistance for claimants navigating the claims process.

Summary

House Bill 1732 aims to establish a legislative framework for dispute resolution with regard to certain claims arising from insurance policies issued by the Fair Access to Insurance Requirements (FAIR) Plan Association. The bill introduces provisions that define the process for claimants to challenge decisions taken by the association on partially or fully accepted claims. A significant aspect of this bill includes the requirement for insurers to notify claimants regarding the decision on claims within specified time frames and to engage in appraisal processes for disputed claims.

Sentiment

The sentiment surrounding HB 1732 appears supportive primarily among consumer advocates and individuals concerned with fair treatment in the insurance claims process. However, there may be contention from insurance companies regarding the additional regulations and potential implications for their claims handling processes. The focus on clarity within the claims process is generally seen as a positive step by proponents.

Contention

One of the notable points of contention could arise from the perspectives of insurers who might see the bill as an encroachment on their ability to manage claims effectively. Moreover, the bill imposes binding appraisal decisions that could restrict further legal recourse for claimants, raising potential issues around fairness. Overall, while the bill seeks to streamline the claims process and protect consumer rights, it also initiates conversations about the responsibilities and liabilities of the FAIR Plan Association.