Paradee’s Insurance Acts

Late last session, State Representative Trey Paradee, who is seeking a promotion this year to the State Senate, introduced a trio of insurance reform bills that seem like a great idea, but don’t seem to be getting any love with respect to sponsorship and hearings in committee.

The first bill, HB262, would prohibit insurance companies from revoking, or attempting to revoke, an offer of settlement made to an insured, except in circumstances where the insurer reasonably believes the insured has committed fraud against the insurer.   Sounds good.  A common sense protection from abuse for the insured consumer.

HB 262-PROHIBITING INSURANCE COMPANIES FROM REVOKING OFFERS OF SETTLEMENT
SPONSORS: Paradee, Bushweller
YES VOTES:
NO VOTES:
ABSENT:
NOT VOTING:
HISTORY:  House Economic Development/Banking/Insurance/Commerce 6/27/17
STATUS: Waiting on consideration in committee

The next bill, HB263, would prohibit insurance companies from frequently attempting to settle claims with their insureds for less than an amount a reasonable person would believe to be fair based on a common, verifiable compilation of valuation data, such as the NADA guides. Again, a good protection for the insured.

HB 263 – UNFAIR PRACTICES IN THE INSURANCE BUSINESS
SPONSORS:  Paradee, Bushweller
YES VOTES:
NO VOTES:
ABSENT:
NOT VOTING:
HISTORY:  House Economic Development/Banking/Insurance/Commerce 6/27/17
STATUS: Waiting on consideration in committee

Finally, the last bill, HB264, as I understand it, would require insurance companies to pay the insured the amount of the insurance company’s offer of settlement at the very least, even though the insured had rejected the offer.

The question I have with respect to this bill is the timing of the payment.  Does it come immediately after the rejection, and if the insured is successful in an appeal of the offer or in litigation, then the insurance company will pay the additional balance? Or does payment occur after all appeals and litigation is concluded? The language of the bill says the settlement amount remains subject to both parties’ reservation or rights, claims, and arguments for the ultimate outcome of the claim, but it is silent on if the insured gets paid the offer before, during or after any claim dispute.

Either way, Democrats in the General Assembly, co-sponsor these bill with Trey. Fighting to protect insureds against insurance companies is always a Democratic fight.

HB 264 – UNFAIR PRACTICES IN THE INSURANCE BUSINESS.
SPONSORS: Paradee
YES VOTES:
NO VOTES:
ABSENT:
NOT VOTING:
HISTORY:  House Economic Development/Banking/Insurance/Commerce 6/27/17
STATUS: Waiting on consideration in committee