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Senate Business Committee hears hailstorm lawsuit reform bill

SOUTHEAST TEXAS RECORD

Saturday, November 23, 2024

Senate Business Committee hears hailstorm lawsuit reform bill

Insurance 07

AUSTIN – On March 9, Senate Bill 10, better known has the hailstorm lawsuit reform bill, got its first hearing before the Senate Business and Commerce Committee.

“Today’s hearing on Senate Bill 10 is an important first step for stopping hail litigation abuse,” said Joe Woods, vice president, state government relations for the Property Casualty Insurers Association of America.

“It was important for lawmakers to hear testimony from local insurance companies that have been directly impacted by hail claims litigation abuse and that have been forced to leave areas of the state because of the large numbers of lawsuits.”

Woods testified at the hearing.

“We all know that Texas consistently ranks among the top 10 states for severe weather events. With such high risk for property damage from severe weather and natural disasters, Texans need peace of mind that their insurance claims will be settled quickly and efficiently,” said Woods.

“SB 10 will help make that happen by protecting homeowners from the bad actors who prey on storm victims. The bill helps to stop the lawsuit abuses by storm-chasing lawyers while ensuring that policyholders still have all their legal rights if they feel their insurer acted in bad faith.”

State tort reform groups, such as Citizens Against Lawsuit Abuse, believe SB 10 will help curb the mass litigation that follows after every major storm strike within the state while insuring consumer rights are still protected.

Opponents of the bill argue policyholder rights will be adversely impacted if it passes.

PCI is composed of nearly 1,000 member companies, representing the broadest cross section of insurers of any national trade association.

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