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.