Texas House Bill HB3623

Texas 2017 - 85th Regular

Caption

Relating to the protection of motorists, passengers, and pedestrians.

Impact

One of the main impacts of HB3623 is the establishment of voidable releases of claims. If a claimant signs a release for compensation within 45 days post-incident without legal representation, they may void that release. This means that injured parties will retain their rights to pursue full compensation even after an initial settlement offer, thereby protecting them from potentially inadequate settlement amounts when their injuries and losses are not fully known.

Summary

House Bill 3623 aims to enhance the protection of motorists, passengers, and pedestrians by addressing the predatory practices of personal and commercial automobile insurers. The bill introduces a set of provisions in the Insurance Code, specifically focusing on the rights of those injured in motor vehicle incidents, ensuring they are not coerced into prematurely settling their claims. It defines key terms such as claimant, release, and occurrence to provide clarity on the bill's scope and intent.

Contention

A notable point of contention surrounding the bill pertains to the balance between protecting consumers and the potential implications for insurance practices. Supporters argue that the legislation will aid in preventing insurers from exploiting vulnerable claimants, ensuring fair compensation for those impacted by vehicular accidents. However, some critics express concerns that these changes might result in higher premiums or cumbersome processes for insurers, potentially leading to unintended consequences within the insurance market.