2015: HB 303 – Uninsured Motorist Coverage
Session 2015-16Sponsored by Rep. Dustin Hightower (R-Carrollton), House Bill 303 increases the penalty for “bad faith” claims. Currently, an insurer has 60 days to process and fulfill a policyholders claim on uninsured motorist coverage. After 60 days, the policyholder can file a lawsuit claiming the insurer is acting in “bad faith” on their claim. If the court finds that the insurer did act in “bad faith”, the court can award a penalty up to 25% of the policyholders uninsured motorist coverage limit. HB 303 would increase the penalty for these types of claims with a minimum of $25,000 or 25% of the policy limits.
| Description | Sponsors | Bill Status | Chamber Position |
|---|---|---|---|
Sponsored by Rep. Dustin Hightower (R-Carrollton), House Bill 303 increases the penalty for “bad faith” claims. Currently, an insurer has 60 days to process and fulfill a policyholders claim on uninsured motorist coverage. After 60 days, the policyholder can file a lawsuit claiming the insurer is acting in “bad faith” on their claim. If the court finds that the insurer did act in “bad faith”, the court can award a penalty up to 25% of the policyholders uninsured motorist coverage limit. HB 303 would increase the penalty for these types of claims with a minimum of $25,000 or 25% of the policy limits. |
Senate Read and Referred 03/13/2015 |
