Texas House Bill HB2818

Texas 2011 - 82nd Regular

• Introduced: 3/9/11
• Refer: 3/14/11

Caption

Relating to the operation of the Texas Windstorm Insurance Association and to the resolution of certain disputes concerning claims made to that association.

Impact

This bill directly amends several sections of the Texas Insurance Code to strengthen the operational framework of TWIA. It introduces mandatory deadlines for submitting claims, requiring insurers to notify policyholders about arbitration options clearly. Additionally, the bill enhances the authority of the Texas Department of Insurance to oversee qualified inspectors who assess storm damage, creating a more structured process for appraisal and compliance. These changes aim to ensure timely processing of claims and reduce the potential for disputes that can delay payouts to policyholders after a storm.

Summary

House Bill 2818 addresses the operation of the Texas Windstorm Insurance Association (TWIA) and sets forth new provisions for resolving disputes related to insurance claims for windstorm and hail damage. The bill emphasizes establishing deadlines for filing claims and mandates the inclusion of arbitration provisions in insurance policies issued by the association. This legislative measure aims to enhance the efficiency and effectiveness of claims handling while providing a framework for resolving disputes that can arise from differing interpretations of coverage and claims amounts.

Sentiment

The general sentiment around HB2818 appears to be supportive among insurance industry stakeholders who argue that the bill will promote timely claim resolutions and reduce litigation over declarations of insurance coverage. However, concerns have been expressed regarding potential limitations imposed on policyholders and the fairness of the arbitration process. Critics argue that binding arbitration might disadvantage consumers, particularly in complex claims where the association may hold disproportionate power over the claims decisions.

Contention

Notable points of contention regarding HB2818 include concerns about the implications of mandatory arbitration for claimants, especially regarding their ability to appeal decisions made during the arbitration process. There is apprehension that this could lead to less favorable outcomes for policyholders who may find themselves with fewer recourses if they disagree with TWIA's claims decisions. Furthermore, the debate highlights a broader discussion on balancing regulatory oversight with consumer protection in the context of storm-related insurance coverage.