Texas House Bill HB3430

Texas 2017 - 85th Regular

Caption

Relating to dispute resolution for certain claims arising under insurance policies issued by the Fair Access to Insurance Requirements (FAIR) Plan Association; authorizing fees.

Impact

The legislation establishes exclusive remedies for claims against the FAIR Plan Association, which includes limitations on the liabilities that the association can face regarding additional damages or penalties beyond covered losses. This amendment is expected to make the claim handling process more predictable, potentially reducing litigation costs for both the policyholders and the association. Moreover, it mandates the establishment of an ombudsman program to assist insured individuals in navigating the claims process, which may enhance consumer protection and support.

Summary

House Bill 3430 aims to streamline the dispute resolution process for certain claims arising under insurance policies issued by the Fair Access to Insurance Requirements (FAIR) Plan Association. This bill introduces amendments to the Insurance Code, facilitating the handling of claims and the settlement of disputes between the insured and the FAIR Plan Association. One key provision includes a specified timeline for filing claims, mandating that all claims must be submitted within a year of the damage, enhancing the efficiency of the claims process.

Contention

Notably, the bill may face contention regarding the limitations it imposes on claimants, particularly concerning their ability to pursue private actions against the association involving certain disputes. The insistence on resolving claims through appraisal processes before initiating legal action could also be seen as burdensome. There may also be debate over the implications of allowing the association to set procedures and fees related to dispute resolution, which some stakeholders might argue could disadvantage the insured individuals.