Texas House Bill HB3697

Texas 2015 - 84th Regular

Caption

Relating to a study by the Texas Department of Insurance to research and evaluate claims data and the recovery of attorney's fees in first-party insurance claims.

Impact

The findings from this study are intended to shed light on the existing landscape of first-party insurance claims in Texas. By analyzing claims data comprehensively, the bill is expected to inform future legislative efforts regarding insurance claims, potentially leading to revisions in existing laws that govern attorney's fees in insurance-related lawsuits. This could enhance transparency and help resolve discrepancies faced by claimants when pursuing legal recourse.

Summary

House Bill 3697 mandates a study by the Texas Department of Insurance to examine and evaluate data related to first-party insurance claims and the associated recovery of attorney's fees. The bill seeks to gather a comprehensive understanding of claims filed over the past five years, the legal actions pursued by claimants, and any complaints they may have lodged with the Department. This investigation aims to involve various stakeholders, ensuring a broad and inclusive perspective is presented in the final report to the legislature.

Contention

Notably, the bill modifies Section 542.062 of the Insurance Code, adjusting the allowance for the recovery of reasonable attorney's fees in lawsuits stemming from insurance claims. This amendment dictates that attorneys' fees shall not exceed the economic damages a claimant is legally entitled to recover, which could affect how claimants strategize their legal proceedings. While proponents may argue that this prevents excessive legal fees and encourages fair practices, critics could contend that it might limit access to justice for some claimants who find themselves unable to afford legal representation if their potential recovery is capped.