Texas 2021 - 87th Regular

Texas House Bill HB2330

Caption

Relating to the effects of unresponsive insureds for a personal automobile insurance policy.

Impact

The implementation of HB 2330 could significantly affect the operations of insurance companies in Texas. By requiring insurers to actively reach out to their policyholders post-claim, it encourages insurers to maintain better communication and accountability. This change may lead to more timely claim resolutions and ensure that third-party claimants are not left in limbo while waiting for responses from unresponsive insureds. The requirement for insurers to decline policy renewals further emphasizes the need for policyholder engagement and could discourage unresponsiveness.

Summary

House Bill 2330 aims to address challenges related to unresponsive insureds under personal automobile insurance policies. It mandates that insurance companies must attempt to communicate with named insureds at least five times within a 45-day period following a liability claim made against them by a third party. If the insurer fails to make contact during this stated period, they are then required to pay the claim to the third-party claimant as per the policy terms and subsequently decline to renew the policy. This legislation intends to provide clarity and protection for third-party claimants in instances where insured individuals are unresponsive.

Contention

One point of contention surrounding HB 2330 may stem from the potential increase in operational burdens placed on insurance companies. Insurers might argue that the mandated communication attempts could lead to higher administrative costs and affect their customer service processes. Critics may also raise concerns regarding the impact on policyholders who might struggle with communication due to various reasons such as accessibility or incapacity. Furthermore, the balance between protecting third-party claimants and the rights of insured individuals could spark discussions in legislative circles.

Companion Bills

No companion bills found.

Previously Filed As

TX SB554

Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.

TX HB4194

Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.

TX HB1437

Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.

TX HB1656

Relating to the payment of deductibles under automobile insurance policies.

TX HB2065

Relating to nonrenewal of certain private passenger automobile insurance policies for the insured's failure to cooperate in a third-party liability claim or action.

TX HB1352

Relating to the provision of uninsured or underinsured motorist coverage in automobile liability insurance policies.

TX HB150

Relating to prohibiting oral releases for automobile insurance claims.

TX HB2039

Relating to automobile liability insurance for digital network company drivers.

TX SB153

Relating to proof of insurance and database requirements for operator's and certain exclusionary automobile insurance policies.

TX SB1042

Relating to prohibiting oral releases for automobile insurance claims.

Similar Bills

No similar bills found.