Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
SB 10 would make numerous changes to the Business & Commerce and Insurance Codes to address the issue with four major provisions to take note. First, a disgruntled insured’s lawyer would be permitted to sue for an alleged breach of contract, alleged negligence, misrepresentation, fraud, or breach of common law duty, or deceptive trade practices. Next, before an action is filed, written notice must be given no later than 60 days in advance to give the insurer time to resolve the claim. Also, if an insurer unconditionally elects to accept whatever liability the agent might have for acts or omissions relating to the claim, the claimant can not file an action against the agent which curbs transferring cases to federal courts. Finally, if a defendant was not given a pre-suit notice specifying the alleged amount owed to the insured at least 61 days before an action is filed, the court would be prohibited from awarding any attorney's fees to the claimant incurred after the date the defendant files the pleading with the court.
This bill contains provisions which increase the scope of government by adding new regulations on the conditions under which an insured may file suit against an insurer. At the same time the bill would cut down on the cost of government by limiting the number of frivolous lawsuits which ultimately drive up costs for consumers. We remain neutral on SB 10.