Texas HB 1774 has some renown after Hurricane Harvey. It was originally introduced in order to address frivolous litigation. During the unseen process of legislation that is the Texas Legislature, additions were made to the bill that have nothing to do with frivolous litigation. Among the extraneous additions was a reduction in delay penalties for certain insurance claims, from 18% to what is now apparently 10%. A new statute was added as Section 542.060(c) of the Texas Insurance Code.
It makes unfair and deceptive trade practices litigation which is also subject to "Chapter 542A" of the Texas Insurance Code subject to the reduction. Convoluted? You bet.
There is a dispute or debate over whether the provisions of HB 1774 apply to any claims to insurance coverage or lawsuits to enforce those claims arising out of Hurricane Harvey damage. The debate includes whether certain parts of that law took effect on Friday, September 1, 2017. See Stephanie K. Jones, "Law's Ambiguity a Source of Mixed Messages Over Texas Cat Claims Statute" (Insurance Journal online, posted on Wednesday, August 30, 2017), also available at http://www.insurancejournal.com/news/southcentral/2017/08/30/462820.htm.
By the terms of HB 1774, however, it specifically does not apply to, among other things, "coverage provided through the National Flood Insurance Program." Id.
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