BACK TO BLOG January 2, 2017

Panel Seeks to Limit Texas Insurance Claims Lawsuits

A legislative panel in Austin is considering whether to place limits on the amounts plaintiffs can win in a Texas insurance claims lawsuit. The panel, made up of members of the Texas House Insurance Committee, will determine if any measures should be taken to protect insurers from what some groups cite as an excessive number of lawsuits against insurance carriers, as well as from the high amounts that plaintiffs can win in “bad faith” lawsuits against the companies.

The Flowers Law Firm opposes any legislation that punishes Texas consumers or takes away rights from insurance policyholders.

Strong Weather Prompts Texas Insurance Claims Lawsuits

In October 2012, residents of the El Paso area experienced two major hail storms in one week. Thousands of homeowners filed insurance claims seeking compensation for the damages their properties sustained. When some insurers underpaid or outright denied these claims, many policy holders filed Texas insurance claims lawsuits against the carriers. These suits cost the insurers billions of dollars in legal fees, court costs, jury verdicts, and out-of-court settlements.

Insurance Lobbyists Want Limits on Texas Insurance Claims Lawsuits

A representative from Texans for Lawsuit Reform, a group that advocates for restrictions on the 7th Amendment rights to trial by jury (including advocating for limits on Texas insurance claims lawsuits), told the panel that the high number of lawsuits against insurers was “lawyer-driven litigation.” The group lobbies in Austin on behalf of insurers who seek to protect their bottom lines. If they are successful in persuading legislators to enact limits on such lawsuits, thousands of homeowners could be affected in the future.

Attorney Group: Insurers’ Actions, Not Lawyers, Spur Texas Insurance Claims Lawsuits

A spokesman for the Texas Trial Lawyers Association told the panel that the high number of Texas insurance claims lawsuits stems from actions taken by the insurers, not prompting from attorneys. Bryan Blevins told the panel that attorneys are working with more and more clients who have voiced their frustration and anger at insurers. He pointed out that homeowners who work with legal counsel receive an average of over $31,000 on their claims, compared to only $7,000 for policy holders who go it alone.

Commission Prepares Report on Texas Insurance Claims Lawsuits

Members of the state’s insurance regulatory agency are preparing a report on the effect of Texas insurance claims lawsuits on the insurance industry within the state. The Texas Insurance Commission expects to file a report early next year on the impact of lawsuits on the insurance industry as a whole. The panel is expected to use those findings as a means to determine the merits of enacting legislative limits on lawsuits filed against insurance carriers.

Know Your Rights in a Texas Insurance Claim Lawsuit

To find out how we can help you with a Texas insurance claims lawsuit, contact the Flowers Law Firm today at 903-965-2000. Our friendly staff will ask a few questions about your case and connect you to a Texas insurance claims lawsuit attorney.

Source: Corpus Christi Caller

NOTE: This post is a news story and does not imply an endorsement of the Flowers Law Firm by any of the parties mentioned herein.