Texas Senate Bill SB600

Texas 2015 - 84th Regular

Caption

Relating to underinsured motorist coverage in personal automobile insurance policies.

Impact

With the enactment of SB600, the definition of underinsured motor vehicles in state law will be more explicit, enhancing the statutory framework that regulates insurance coverage. This likely aims to improve transparency for policyholders regarding their rights and the scope of their coverage in cases of accidents involving underinsured drivers. Furthermore, it may lead to an increase in claims made under underinsured motorist coverage by providing a clearer pathway for recovering damages. Insurers may need to adjust policy terms and conditions accordingly to comply with the revised legal definitions and requirements.

Summary

Senate Bill 600, known as the underinsured motorist coverage bill, aims to amend the provisions related to underinsured motorist coverage in personal automobile insurance policies. It clarifies the definition of an underinsured motor vehicle and amends the requirements for recovery under such coverage. Specifically, the bill stipulates that underinsured motorist coverage must account for the total amounts the insured might lawfully recover as damages due to bodily injury or property damage caused by an underinsured motor vehicle. This change is designed to provide better protection for individuals who suffer damages resulting from accidents with drivers whose insurance coverage is insufficient to cover the costs incurred.

Contention

While there appears to be broad support for enhancing motorists' coverage, there may be concerns among insurers regarding the potential increase in claims and the implications for premium pricing. Some stakeholders could argue that the revisions may lead to higher costs passed on to consumers as insurers adjust to accommodate more comprehensive coverage requirements. There may also be debates surrounding the balance of providing adequate protection for insured parties while ensuring that the insurance market remains viable and competitive.