AIA Praises Texas Legislature’s Passage of Hailstorm Claims Litigation Legislation

WASHINGTON, May 17 -- The American Insurance Association issued the following news release:

The American Insurance Association (AIA) praised the Texas legislature's passage of hailstorm litigation reform legislation (HB 1774). HB 1774 passed the Senate by a vote of 21 to 7 earlier today. HB 1774 curbs lawsuit abuse related to hailstorm litigation by requiring notice before a suit can be filed to permit the insurer to address any outstanding claim issues. The legislation now heads to the Governor for his signature.

A statement from Fred C. Bosse, AIA's Southwest region vice president, follows:

"Today's passage of HB 1774 by the Texas Senate is an important step toward ending rampant hailstorm-related lawsuit abuse. Weather-related lawsuit abuse was not only creating an insurance claims crisis in parts of Texas; it was also subjecting homeowners to predatory adjusters and trial lawyers. HB 1774 prohibits this practice and provides a 60-day window for insurers to address any outstanding claims issues.

AIA applauds the Texas legislature for passing much needed legislation addressing hailstorm-related lawsuit abuse and providing Texans the relief they need. We specifically want to thank Chairman Kelly Hancock and Representative Greg Bonnen for their leadership and sponsorship of HB 1774. Additionally, AIA would like to recognize Texans for Lawsuit Reform for its tireless work in advocating for hail litigation lawsuit reform."

Celebrating its 150th year in 2016, The American Insurance Association (AIA) is the leading property-casualty insurance trade organization, representing approximately 320 insurers that write more than $125 billion in premiums each year. AIA member companies offer all types of property - casualty insurance, including personal and commercial auto insurance, commercial property and liability coverage, specialty, workers' compensation, homeowners' insurance, medical malpractice coverage, and product liability insurance.