Apr 12, 2015
Caller Times: State Senate argues insurance reform bill
State Senate argues insurance reform bill April 12, 2015 Corpus Christi Caller Times, Matthew Waller AUSTIN — Carol Fredenburg had never filed an insurance claim in her life. Nevertheless, she had carried insurance for more than 40 years, she told a panel of state lawmakers in March. The Senate Business and Commerce Committee was considering legislation that could change Texas insurance law, and they listened as Fredenburg said when hail came and damaged the roof of her Austin home, she filed her first claim. The adjusters looked at the roof and said there wasn’t damage on three sides, even though roofers said there was. She could not get the insurance company to help her. In her struggle, she finally had an attorney file a lawsuit, and the insurance company settled before they went to trial. “I’m not a fan of lawsuits,” Fredenburg said, but insurance companies “have all the hammers now. They can run over people. They tried to run me over.” The proposed law, Senate Bill 1628, filed by state Sen. Larry Taylor, R-Friendswood, would shield insurance companies from excessive lawsuits in the name of cracking down on massive amounts of litigation in hailstorm situations. “From our point of view, the bill is seeking a balance between the rights of the consumer … but also to do something about what we’re seeing as a big process of creating disputes and exacerbating disputes that leads to a lot of lawsuits and needless disputes in the claims handling process,” said Beaman Floyd, director of the Texas Coalition for Affordable Insurance Solutions. Floyd said roofers and public adjusters seem to be trying to create work for themselves by convincing the public to reopen claims and file lawsuits. He said the industry has seen cases of getting a lawsuit before handling a claim. However, more than a dozen witness testified against the bill, arguing that, as written, the bill could give a massive amount of power to insurance companies and disadvantage Texans trying to get claims handled to fix their homes. Granting immunity Taylor said the bill aims to curb those who solicit disaster victims for litigation, reaching out to people to start lawsuits instead of having people with legitimate problems reaching out to them. “Over the last few years, various hail storms have resulted in tens of thousands of claims filed against property and casualty insurers statewide, resulting in mass litigation,” Taylor said. Usually about 1 percent go to court, he... Read More
Apr 7, 2015