Texas insurance companies scored a huge win earlier this year by lobbying the Texas Congressional and Senate members to pass House Bill 1774 and Senate Bill 10. By doing so, the worst of the worst of slow and underpaying insurance companies will now have the legal ability to create a wider spread between the actual amount of repair costs and the amount offered to the insured and make it more difficult for their client to seek legal actions with a successful outcome.
While some portions of the bills are well needed to avoid lawsuit abuse from claim running public adjusters and attorneys, the bills will be abused by the insurance companies. Many of the penalties that were currently in place to protect the insured will be massively slashed when they wrongfully deny, delay and underpay damage claims.
Some important items to consider:
- Forces most lawsuit cases into Federal Court and away from State Courts
- Lawsuits could now take twice as long to complete
- Creates higher costs for the insured by forcing them to hire experts to prove their case
- Severely reduces incentives for insurance companies to pay on time and in full
- Reduces penalties for slow payment
Simply stated, the need to pass this bill has been completely overblown. TDI has determined only 1.5 – 2% of insurance damage claims result in litigation. This bill only increases the oh-so-important profits that the powerful insurance companies crave. Forcing their own clients into an expensive lawsuit to receive fair treatment will only create more profits by lowering the number of litigation lawsuits.
As the policy holder, the need to successfully negotiate and close your damage claim without an attorney is more important than ever.
At ClaimsMate, we specialize in utilizing expert techniques to quickly close insurance claims.
Contact us now to avoid unscrupulous public adjusters and attorneys. We handle our clients like our own family members.