Public Meeting Held Over Texas Insurer’s Proposed Mediation-Arbitration Endorsement

Yesterday, the Texas Department of Insurance (“TDI”) held a public meeting in Austin regarding a Texas insurer’s request to add an optional endorsement to the company’s homeowners insurance policies.  During the meeting that was presided over by Texas Insurance Commissioner David Mattax, Texas Farm Bureau Insurance Companies sought approval for its proposal to allow insureds to relinquish their right to sue the company in the event of a claim dispute in exchange for a lower homeowners’ policy premium.

According to the company, the proposed voluntary endorsement was designed to combat rising litigation costs.  In addition, Farm Bureau reportedly cited Texas Supreme Court precedent favoring arbitration in support of the company’s request.  Insurance lobbyists, consumer advocates, and attorneys also spoke at the public meeting.   More than five hours of audio meeting minutes are now available on TDI’s website.

Commissioner Mattax did not provide a deadline for issuing a decision on the endorsement request.

Stay tuned for future updates on this interesting process!

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