Texas House Bill HB4877

Texas 2025 - 89th Regular

• Filed: 3/13/25
• Out of House Committee: 4/28/25
• Voted on by House: 5/7/25

Caption

Relating to the Texas Property and Casualty Insurance Guaranty Association.

Impact

The proposed changes are set to impact existing state laws by refining the operational statutes of the Texas Property and Casualty Insurance Guaranty Association. By making these adjustments, the bill aims to streamline processes associated with covered claims while ultimately enhancing consumer protection and simplifying the management of claims within the context of impaired insurance providers. This could lead to improved outcomes for individuals with claims who find themselves interacting with impaired insurers and ensure that their claims are addressed efficiently.

Summary

House Bill 4877 is designed to amend specific sections of the Texas Insurance Code concerning the Texas Property and Casualty Insurance Guaranty Association. The bill seeks to modify definitions related to claims and the scope of insurance types it covers. Notably, it clarifies the term 'claimant' to include insured persons making first-party claims and those instituting liability or workers’ compensation claims. This amendment enhances the clarity surrounding who qualifies for protections under the insurance guaranty association framework.

Sentiment

The sentiment around HB 4877 appears generally supportive, primarily among stakeholders in the insurance industry, as it emphasizes a more defined framework for how claims are handled with impaired insurers. Insurance providers and professionals view these amendments as beneficial in minimizing ambiguities that could otherwise complicate the claims process. However, skepticism exists regarding how these changes may influence the policies and outcomes for claimants, particularly if the limitations present any unintended consequences for those seeking to recover from impaired insurers.

Contention

Points of contention surrounding HB 4877 include concerns over the potential impact of the amended definitions on the scope of recovery available to insured individuals. Some stakeholders worry that altering the definition of 'claimant' and the exclusions tied to governmental protections may create new hurdles for individuals in pursuing their claims. The bill does keep in mind the balances needed to protect vulnerable claimants while simultaneously advocating for a more organized operation within the insurance framework.

Texas Constitutional Statutes Affected

Insurance Code

• Chapter 462. Texas Property And Casualty Insurance Guaranty Association
  • Section: 004
  • Section: 007
  • Section: 017
  • Section: 054
  • Section: 105
  • Section: 156
  • Section: 308
  • Section: 309
  • Section: 004
  • Section: 007
  • Section: 017
  • Section: 054
  • Section: 105
  • Section: 156
  • Section: 308
  • Section: 309
  • Section: 004
  • Section: 007
  • Section: 017
  • Section: 054
  • Section: 105
  • Section: 156
  • Section: 308
  • Section: 309
  • Section: 004
  • Section: 007
  • Section: 017
  • Section: 054
  • Section: 105
  • Section: 156
  • Section: 308
  • Section: 309