SB 1537

85(R) - 2017
Senate Business & Commerce
Senate Business & Commerce
Civil Remedies

Vote Recommendation

  • Neutral
  • Neutral
  • Neutral
  • Neutral
  • Neutral


Larry Taylor

Bill Caption

Relating to dispute resolution for certain claims arising under insurance policies issued by the Fair Access to Insurance Requirements (FAIR) Plan Association; authorizing fees.

Fiscal Notes

From the Legislative Budget Board: no significant fiscal implication to the state is anticipated.

Bill Analysis

SB 1537 would amend the Insurance Code to make a multitude of changes regarding disputes under policies issued by the FAIR Plan Association. The first to take note of is to require a presiding officer over a dispute involving the FAIR Plan Association and an insured to notify each party that the officer has property and casualty insurance under the FAIR plan within seven days of being given the assignment. Either party may file a written objection to assignment of the officer. Next, an insurance policy issued by the association must include a requirement that an insured file a claim within one year of the date on which the damage to property occurs and a notice concerning the resolution of disputes. Third, the association would not be held liable for any amount other than covered losses payable under the terms of the association policy. Fourth, a claimant disputing denied coverage would be required to give notice to the association that the claimant intends to bring an action. Finally, the Department of Insurance would establish an Ombudsman program to provide information to assist insureds with the claims process. 

Vote Recommendation Notes

This is a procedural bill regarding claim disputes of FAIR association policies, a creation and program of the state, and does not appear to have a connection to our liberty principles, therefore we remain neutral.  

Organizations Supporting

Property Casualty Insurers Association of America
Texans for Lawsuit Reform
The Travelers Companies, Inc. 

Organizations Opposed

Texas Trial Lawyers Association
Texas Watch