Texas House Bill HB1982

Texas 2019 - 86th Regular

Caption

Relating to the operation of the Texas Property and Casualty Insurance Guaranty Association.

Impact

The implementation of HB1982 is expected to streamline claims handling processes for property and casualty insurance in Texas, especially in scenarios where insurers face insolvency or impairment. The adjustments made in defining 'impaired insurer' and detailing claims processing will potentially enhance the efficiency of the association's operations, thereby improving service for claimants. Such changes may also have repercussions for how insurers manage risk and recoveries in liquidation scenarios, promoting a more stable insurance environment in Texas.

Summary

House Bill 1982 addresses the functioning of the Texas Property and Casualty Insurance Guaranty Association by amending various sections of the Texas Insurance Code. The bill redefines the term 'impaired insurer' to clarify the conditions under which an insurer can be classified as such. It outlines the procedures for handling claims associated with impaired insurers, reinforcing the association's role in these processes and establishing clearer parameters for the association's financial recoveries and liabilities.

Contention

There are anticipations that while the bill may improve operational clarity, it may also lead to contentious debates regarding liability limits and claims processes. Some stakeholders might argue that the revisions could shape the financial liabilities of insurers uniquely, requiring additional oversight or amendments to complement local needs. The balance between protecting consumers, especially in claims recovery, and maintaining robust operational guidelines for the association is likely to be an area of discussion among legislators and industry representatives.