84th Recap: Hail Damage, Law Suit Abuse, and Insurance Reform

Anyone in the home insurance business is aware of the huge increase in litigation against insurance companies related to roofing claims following some of the states hail storms from the past several years. The estimated numbers of lawsuits is currently in the tens of thousands as attorneys applying mass tort models to property damage claims and canvas consumers in post-event areas. SB 1628 sought to end the mass litigation by creating clear deadlines for claim filings, increase notice and proof of loss standards, define actual damages, clarify illegal insurance practices, eliminate improper solicitation of consumers by adjusters, and enforce the current policy appraisal process.

Details of the bill aside, the issue brought out the tort reform groups and the trial attorney groups to square off on this issue. SB 1628 made it out of the Senate, though it did undergo a total of 11 adopted floor amendments before it passed. 

The bill had a month to make it through the House before the end of session. It took three weeks for the bill to be heard and reported out of the House Committee on Insurance. However, after the bill was again changed in the House committee the bill's list of opposition grew substantially. Not only were trial lawyers against the bill, but now so were bankers, car dealers, convenience stores, a hotel chain, rural schools, mortgage bankers and even AARP. While the House sponsor asserted that the changes made in the House committee actually softened many of the controversial provisions, the opposition, in particular the business based opposition, raised concerns that the bill was not narrowly focused on hail storm claims. The business groups perceived SB 1628 would have a negative impact on every type of business that attempts to have a business claim paid by insurance companies.

The opposition at the end of the session proved insurmountable and SB 1628 never made it to the House floor for a vote.

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