Relating to requirements for attorneys in fact under Lloyd's plans.
The changes proposed in HB 1928 specifically affect the regulatory framework governing how attorneys in fact operate under Lloyd's plans. By establishing residency and office location requirements, the bill seeks to ensure that legal representatives of these insurance contracts are accountable and conveniently located within the state. This move is likely to bolster consumer confidence in the enforcement of insurance contracts, as it establishes a clear legal recourse for disputes arising from such agreements.
House Bill 1928 aims to update the requirements for attorneys in fact under Lloyd's plans by amending Section 941.101(b) of the Texas Insurance Code. The bill introduces specific stipulations, mandating that an attorney in fact must be a resident of the state of Texas, maintain their office within the state, and must be made a party to any suit that seeks to enforce the obligations of the Lloyd's plan under an insurance contract. This change is intended to create clarity around the jurisdiction and responsibilities of attorneys in fact involved in Lloyd's plans in Texas.
While the full text does not explicitly mention points of contention, issues surrounding jurisdiction and local ties to the attorneys in fact could be of concern to parties involved in Lloyd's plans. Stakeholders in the insurance industry may raise questions about the implications of moving towards more localized requirements, particularly with respect to operational flexibility and accessibility for clients. Furthermore, the requirement for attorneys in fact to be parties to enforcement suits may lead to debates on legal liabilities and responsibilities under Texas law.