Texas Insurer Abandons Mandatory Mediation-Arbitration Endorsement Proposal

Disputing Blog by Karl Bayer, Victoria VanBuren, and Holly Hayes

The Texas Farm Bureau has reportedly abandoned a proposal that would have allowed insureds to relinquish their right to sue the company in the event of a claim dispute in exchange for a lower homeowners’ policy premium.  Under the proposal, insureds who opted to pre-emptively sign away the right to sue would instead have been required to engage in mandatory mediation-arbitration with Farm Bureau. You may read more about the proposal in a prior blog post.

In July, the Texas Department of Insurance held a public meeting in Austin regarding the insurer’s request.  Insurance lobbyists, consumer advocates, and attorneys offered comments at a contentious five-hour public meeting.  Last week, Texas Farm Bureau formally withdrew its proposal from consideration.  At the time, Texas Insurance Commissioner David Mattax had not yet issued a decision regarding the insurance company’s endorsement request.  Although the Farm Bureau’s mandatory mediation-arbitration endorsement proposal is now closed, it seems likely the issue will be raised again at some point in the future.

                       

Beth Graham

Beth Graham received a J.D. from the University of Nebraska College of Law in 2004 and a M.A. in Information Science and Learning Technologies from the University of Missouri in 2006. She also holds a B.S. in Public Administration from the University of Nebraska-Omaha. She is licensed to practice law… MORE >