The Texas Department of Insurance this week launched a tool that allows residents to see reasons for why insurance companies decline, non-renew or cancel home and auto insurance policies.
The webpage lets users review declination, non-renew and cancellations notices by choosing from a reporting period, ZIP code and policy type.
The page also includes the number of active policies and the counts of nonrenewals, cancellations, and declinations reported by companies.
Through June, TDI has uploaded more than 350,000 notices into the data system.
This new tool puts more information directly in consumers’ hands and advances our commitment to greater transparency across the Texas insurance market,” said Insurance Commissioner Amanda Crawford.
TDI will update the at least quarterly, the department said. TDI plans to expand the resource later this year with auto insights.
The transparency tool was developed following the passage of House Bill 2067 last year, which requires insurance companies to report this information to TDI and provide written explanations when they decline, cancel, or don’t renew a home insurance policy.
“Given the [rules’] emphasis on transparency about financial interests in litigation, the absence of a TPLF disclosure requirement is inexplicable. Contrac
See more beautiful photo albums Here >>>
ts for litigation funding directly or indirectly give nonparty funders a share of judgments and settlements and provide a basis for influencing or controlling litig
ation and settlement decisions,” LCJ wrote, adding that its analysis of known TPLF contracts found these nonparties often have as much influence over a case as named parties.
LCJ said numerous courts, states, and other rulemaking bodies have adopted, or are considering, TPLF disclosure requirements. In addition, federal lawmakers have advanced proposals.
North Carolina recently became the first state to pass an outright ban on TPLF.
The insurance industry has routinely pointed to litigation funding – investments in lawsuits in exchange for a percentage of a settlement or judgment – as a big re
ason for a rapid increase in litigation costs. The practice is typically afforded confidentiality protection in many cases, making it difficult to gauge its true influence.
Last year an insurance industry conference last year, Gareth Kennedy, principal of insurance and actuarial advisory service for EY, said the firm found the averag
e cost for a commercial claim has gone up 10% to 11% per year since 2017. He said the research concluded that over the next five years TPLF will cost the insurance industry up to $50 billion in direct and indirect costs.
