Contact Texas Department of Insurance if you support a PROHIBITION ON INSURANCE COMPANIES USING BINDING ARBITRATION CLAUSES
Texas Department of Insurance is considering a prohibition that would forbid Texas insurance companies from using MANDATORY ARBITRATION CLAUSES THAT WOULD NOT ALLOW YOU TO BRING A LAWSUIT AGAINST YOUR OWN INSURANCE CARRIER IF THEY VIOLATE TEXAS LAW OR INSURANCE CODE. PLEASE CONTACT THE TEXAS DEPARTMENT OF INSURANCE AND TELL THEM YOU THAT YOU SUPPORT A PROHIBITION AGAINST MANDATORY ARBITRATION BY INSURANCE COMPANIES IN TEXAS
It would not be a good thing for Texas Insurance Companies to force consumers to BINDING ARBITRATION. If this prohibition against arbitration is not passed and insurance companies are allowed to use BINDING ARBITRATION CLAUSES IN ALL INSURANCE POLICIES – if you get in a dispute with your HEALTH, AUTO, LIFE, and HOMEOWNERS INSURANCE you will be forced to go to binding arbitration and you WILL LOSE THE RIGHT TO HAVE A JUDGE OR JURY DETERMINE WHETHER YOUR RIGHTS WERE VIOLATED BY YOUR INSURANCE COMPANY AND IF THEY WERE TO DETERMINE YOUR LOSSES AND DAMAGES.
TDI Press Release:
Request for Informal Comments
Relating to the Development of a Rule
to Prohibit Pre-dispute Mandatory Binding Arbitration.
Informal Comments Requested by Friday, November 16, 2012.
The Texas Department of Insurance is considering a rule to prohibit pre-dispute mandatory binding arbitration provisions in insurance products. The basis of the proposed prohibition is that pre-dispute mandatory binding arbitration precludes covered persons from exercising substantive rights provided by the Insurance Code, including Chapters 541 and 542. The rule would apply to policy-or-contract coverages for individuals for personal noncommercial use. The prohibition would apply to group or individual forms providing coverage in life, accident and health, annuity, credit, and property and casualty products, including home and auto. The department invites your comments concerning substantive rights provided by statute and the protection of those rights. The information received will assist the department’s development of the rule. This is an informal posting and not a publication for rulemaking. To expedite the process, please submit comments electronically via email to the address below by 5:00 p.m. on Friday, November 16, 2012.
Thank you for your interest and assistance in this process. Please contact the individual listed below if you have any questions:
Office of Policy Development Counsel
Telephone: (512) 322-4316
Fax: (512) 475-1843