Texas House Bill HB2877

Texas 2009 - 81st Regular

• Out of House Committee: 4/3/09
• Voted on by House: 4/22/09
• Out of Senate Committee: 5/13/09
• Voted on by Senate: 5/18/09
• Governor Action: 5/30/09
• Enrolled: 5/20/09
• Passed: 5/30/09

Caption

Relating to liability insurance closed claim reports.

Impact

The implications of HB 2877 on state law involve a significant shift in how liability insurance data is reported and potentially analyzed. By raising the reporting thresholds, the bill aims to streamline the process for insurers, which may result in fewer administrative requirements for both insurers and the Texas Department of Insurance. This modification could lead to a more manageable dataset for analysis while still capturing significant claims that may require closer scrutiny. However, it is essential to ensure that this does not reduce the oversight of smaller claims that might still indicate underlying issues in certain practice areas or industries.

Summary

House Bill 2877 pertains to the requirements for liability insurance closed claim reports in Texas. The bill amends several sections of the Texas Insurance Code to increase the thresholds for indemnity payments that necessitate reporting. Specifically, insurers are now required to file closed claim reports if the indemnity payment for bodily injury is $75,000 or more, an increase from the previous threshold of $25,000. This change is intended to reduce the reporting burden on insurers for lower-value claims while ensuring that higher-value claims are properly documented and monitored by the state.

Contention

There was some discussion concerning whether the increased threshold for reporting would lead to a lack of data regarding lower-value claims. Opponents of the bill raised concerns that such a reduction in reporting could obscure trends in liability cases and potentially overlook issues that could be mitigated at an earlier stage. Supporters, however, argued that focusing on more substantial claims would provide a clearer picture of the liability landscape. They believed that the adjustments would encourage insurers to allocate resources more efficiently without compromising the overall accountability of the insurance system.