Texas Senate Passes Hail Reform Legislation
The Texas Senate has tentatively approved, by a vote of 21-8, House Bill 1774, the hail reform bill we first discussed back in February of this year.
Key provisions of the bill include:
- Limit applicability of claims under both DTPA in Business and Commerce Code and Ins. Code
- Limit insurer liability under chapter 542 to damages for delays in payment and not simply any violation of the prompt payment provisions. Changes penalty interest amount from 18% to judgment interest rate +3%
- Requires written pre-suit notice (61st day before suit). Abatement plea available if pre-suit notice is not given.
- Allows insurers to make a written request for inspection of the property after pre-suit notice is given
- Allows an insurer to accept liability for the agent’s acts or omissions related to the claim
The proposed legislation also provides a formula intended to limit attorneys fees and prohibits attorney fee recovery on a showing, by a preponderance of the evidence, that the claimant’s attorney committed barratry.
Governor Abbott previously called this legislation a priority so we expect the bill to be promptly signed when it arrives on this desk.