Texas House Bill HB2924

Texas 2011 - 82nd Regular

• Out of House Committee: 5/4/11
• Introduced: 3/10/11
• Refer: 3/17/11
• Report Pass: 4/26/11

Caption

Relating to a claim filing period and contractual limitations period in certain property insurance policies.

Impact

The impact of HB2924 on state laws is significant as it provides greater protection for policyholders by limiting the conditions under which insurers can impose shorter deadlines for filing claims or lawsuits. The bill aims to enhance consumer rights by ensuring that insurance policies offer fair timeframes, thereby potentially reducing disputes over claims. It seeks to create a more standardized approach to insurance claims, which could result in fewer legal battles regarding contractual limitations, especially for policyholders who may be unaware of their rights.

Summary

House Bill 2924 proposes amendments to the Insurance Code regarding the claim filing and contractual limitations periods for certain property insurance policies. Specifically, it establishes that a policy form or endorsement for residential or commercial property insurance must allow a claim to be filed no sooner than one year after the date of loss, while the contractual limitations period for bringing a lawsuit cannot end before two years from the insurer's decision on the claim or three years from the date of the loss. This should provide clearer timelines for policyholders, ensuring they have adequate time to file claims and seek legal recourse if necessary.

Contention

Points of contention surrounding HB2924 may arise from insurance companies arguing that longer claim filing periods could lead to increased claims costs and fraud. Insurers may lobby against the amendments on the grounds that it could complicate their operations and affect their bottom line. Conversely, advocates for consumer rights might argue that these protections are necessary to guard against predatory practices that could unfairly disadvantage consumers. This bill could thus be a focal point in the ongoing debate about balancing the interests of insurance providers and the rights of policyholders in Texas.