Why Isn't TDI Asking About Insurance Company Misconduct?
The Texas Department of Insurance is asking questions. But, it's what they aren't asking that's the problem.
The agency has been tasked by lawmakers to get to the root of what drives property insurance claims. So, they've put together a list of questions for the insurance industry to answer. But, the questions they've proposed won't give anyone a full picture. Instead, the draft asks only about the role that attorneys and public insurance adjusters have in claims disputes.
What about misconduct by insurance companies that unfairly deny, delay, or underpay valid claims, you ask? TDI isn't asking about that.
Lawmakers deserve a full picture - not a one-sided report. So, we've sent the Insurance Commissioner a letter urging him to provide lawmakers with a balanced, thorough report on what drives disputes about insurance claims. We should investigate misconduct by all parties. How often is fraud alleged? What tactics do insurance companies use to deny valid claims? We should also look at industry profits, the erosion of coverage over the last decade or so, and the ways insurance companies de-value claims.
This issue is too important to play games with. Home and business owners rely on their insurance company to help them get back on their feet after disaster strikes. If there's misconduct in how some claims are handled, let's address it by punishing the bad actors. But, lawmakers should take steps to preserve the decades-old protections that are designed to ensure full, fair, and timely payments for families and business owners with valid insurance claims.
You can see our letter below.