R Street applauds passage of Texas’ H.B. 1774
Sponsored by state Rep. Greg Bonnen, R-Galveston, the measure will help cut insurance premiums and slow the exit of insurers from the Texas market by removing perverse incentives for attorney-led abuse of the legal process.
“The ability to sue if you can’t reach agreement on an insurance claim is important, but it shouldn’t be a first resort,” R Street Southwest Region Director Josiah Neeley said. “HB 1774 represents common sense reforms that preserve the right to sue while fixing loopholes in current law that have been abused by trial lawyers to run up their own fees.”
Last year, 500,000 hail claims were filed in the Lone Star State, resulting in more than $4 billion of insured losses, according to the Insurance Council of Texas. Lt. Gov. Dan Patrick listed the legislation among his top 10 priorities of the biennial session.
R Street is a nonprofit, nonpartisan public policy research organization whose mission is to promote free markets and limited, effective government. It has headquarters in Washington, D.C. and five regional offices across the country. Its website is www.rstreet.org.
Image by Suzanne Tucker
