Texas Gov. Greg Abbott said Wednesday that a new Texas insurance law will not change a majority of claims from Hurricane Harvey.
“We need to understand that any claims along those lines are absolutely bogus,” Mr. Abbott, Texas Republican, said at a media briefing. “The Texas Department of Insurance is reassuring Texas policyholders that claims will be paid.”
The new law, House Bill 1774 set to go into effect Friday, aims to reduce unwarranted lawsuits and reduce interest rates to insurance companies for late payments. Instead of having to pay 18 percent of the total claim as a penalty for late payments due to a lawsuit, insurance companies will have to pay based on a varying market formula capped at 20 percent.
“The implementation of this bill does not effect the ability of any policy holder to file a claim or to have that claim paid. What it does do is it empowers policy holders to keep more money in their pockets as opposed to paying money to lawyers who may handle their claim,” Mr. Abbott said.
The law aims to reduce the number of false claims while providing more consumer protections.
• Sally Persons can be reached at spersons@washingtontimes.com.
Please read our comment policy before commenting.