The applicability of Texas House Bill 1774 to Hurricane Harvey claims has been a hot topic in the press and on social media. This legislation, which became effective on September 1st, will apply to all Hurricane Harvey lawsuits filed on or after that date. It will also apply to all hail and windstorm lawsuits filed after September 1st. The legislation changes nothing with respect to the work of adjusters handling Texas insurance claims. As always, adjusters should continue to adjust Hurricane Harvey claims promptly, fairly, and consistent with policy terms.
Tuesday, September 5, 2017
Monday, September 4, 2017
First Harvey Lawsuit Filed to Beat New Texas Law
Late Thursday afternoon, a Dallas law firm filed a lawsuit to circumvent a new law that went into effect on Friday, September 1. The newly passed law, HB1774, was meant to curb hail lawsuit abuse, but after Hurricane Harvey some industry representatives raised concerns that plaintiff attorneys might use the tropical storm as a way to overwhelm carriers with damage claims.
In the complaint, Sunbelt Trees, LLC v. EMC Insurance Companies and Employers Mutual Casualty Company, the plaintiff alleges damage ranging between $200,000-$1,000,000 and loss of use of its tree farm due to Hurricane Harvey and states that while a claim was filed with the defendants, no payment had been made as of the date the lawsuit was filed. In addition, the plaintiff seeks pre-judgment interest, punitive damages and attorneys’ fees.
According to Steven Badger, a partner with Zelle LLP’s Dallas office, there is absolutely no reason that a Hurricane Harvey lawsuit should have been filed prior to September 1st. “The insurance company hasn’t even adjusted the claim yet,” said Badger. “How could it have breached the insurance policy? How could it have violated the Insurance Code or DTPA? Obviously, it hasn’t.”
Sunday, September 3, 2017
Texas Department of Insurance Declares Harvey a Catastrophe
As
anticipated, on Friday, September 1st the Texas Department of
Insurance issued an order declaring Harvey a catastrophe, thereby extending
claims handling deadlines under §542.059 of the Texas Insurance Code. Our
simple reference chart reflects the extended deadlines. Click the highlighted
link above to access it.
A copy of the TDI’s
order can be found here.
Friday, September 1, 2017
Concurrent Causation in Louisiana: The Basics
- Anticipated damage from Hurricane Harvey is expected result from wind, wind-driven-rain, and flood. Under most policies, damage caused exclusively by wind or wind-driven rain is recoverable, but damage caused exclusively by flood is excluded or sub-limited. Where possible, Louisiana courts apportion between wind damage and flood damage.
Summary of Texas First-Party Claims Handling Deadlines for Hurricane Harvey Claims
The Texas Insurance Code provides various claims handling deadlines for both admitted and surplus lines insurance carriers. These deadlines have been accumulated in a simple reference chart. It is important for insurance companies and their adjusters to comply with these deadlines to ensure the prompt adjustment and payment of claims and avoid any statutory penalties.
A New Arrival Threatens Mexico’s Tourism Industry: Tropical Storm Lidia
Tropical Storm Lidia may be in the shadows of the extensive Hurricane Harvey coverage, but it is certainly nothing to ignore. While news of the floods and devastation in Texas dominate the media outlets, Tropical Storm Lidia is bound to leave its mark by the sheer potential for large-scale property damage to Los Cabos’s bustling hospitality industry.
The Texas Supreme Court’s Harvey Orders do not Delay the September 1 Effective Date for HB1774 (Section 542A of the Texas Insurance Code)
We have issued several posts and comments regarding misinformation that has been distributed concerning HB1774 and the new Texas Insurance Code provisions that go into effect on September 1st. Unfortunately, more misinformation is starting to surface — the idea that the recent Texas Supreme Court orders extending statutes of limitations and “deadlines and procedures” due to Harvey serve to delay implementation of the new law. They do not.
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