Arbitration Clause Made Public. It's As Bad As We Thought
After fighting the release of documents related to its request to add pre-dispute arbitration to its home insurance policies, Texas Farm Bureau Insurance relented. So, now the public can see firsthand what the company is up to.
You can see for yourself below, but here are the highlights:
- Disputed claims must go to binding arbitration
- The insurance company has pre-selected the arbitration company
- The insurance company pays the arbitration company
- Discovery is limited to a pre-selected list of documents unless the arbitrator agrees to a request for more information
- The results of the arbitration are secret
All of this in exchange for a discount of just 10-25% off your premium. On average, that means for less than it costs to take your family out to dinner once a month, you'd be forced into a secret, unappealable process in which the insurance company has hand-picked and paid the for-hire, private judge who decides what information you have access to and whether you get paid in full.
This is a dangerous road for homeowners.
We've already told the insurance commissioner to reject this proposal. So has the state's polcyholder advocate. Now it is your turn. Contact Insurance Commissioner David Mattax and tell him your rights are not for sale.Learn Category: