Seven years ago, Texas adopted some fairly significant “tort reform” provisions which had an unintended effect of making Texas families file more lawsuits to obtain fairness on a legitimate case.
Among the provisions that help the drunk driver and hurt the innocent victim are requirements for proving up medical expenses that have become (by virtue of recent court rulings on the new law) more expensive for the victim to process and also giving the drunk driver the benefit of the premiums paid for health insurance by the innocent victim–without compensating such victim.
Additionally, because the insurance companies have perceived much less risk to themselves since tort reform, the insurer is requiring a jury verdict to pay fair settlement to the innocent victim in a much higher number of cases. Unfortunately, for the victim and also for the insurance companies policyholder (who wants the matter settled but is forced into ligitagion by their own insurance company), many lawsuits are now filed and tried to verdict only because the insurance company refused to offer reasonable amounts prior to litigation. In other words the “see you in court” claims handling practice.
How can they do that? Is a question that we often hear once accident victims start talking money with the insurance company. The answer is simple–Texas does not regulate claims handling practices in such a manner to require insurers to be fair to anyone. Further, insurance companies have adopted approaches in some cases where they hire attorneys who are actually “employees” of the insurance company and pay them accordingly.
Finally, the insurance company runs up the cost to the Texas family by opposing everything and then using employees to defend the case at a reduced cost to the insurance company. In other states, employee attorneys have been addressed as a conflict of interest situation. In Texas, however, insurance companies seem to have been given everything they have asked for and far more.
The next time you hear an advocate on “tort reform” talk about the benefits of tort reform–ask them how you have benefited. The truth of the matter is our insurance premiums have continued to outpace other states without tort reform and the excess profits extracted from Texas families who are forced to buy manditory auto insurance have all been pocketed by the insurers.
A reasonable approach and one that has been adopted elsewhere is to require an insurance company reaping profits in our state to pay out a percentage of the premiums collected in actual claims. Texas has one of the lowest claims paid out percentages in the country.
This reasonable approach, served to do two things, first and foremost it keeps the cost of mandatory automobile insurance to a reasonable level for all Texas families. Secondly, it allows families in Texas to receive fair treatment from insurers as both a policyholder and also as an innocent victim of anothers negligence.
Greg Baumgartner is a personal injury lawyer and the founder of the Baumgartner law firm, a Texas personal injury law firm dedicated to helping families of people injured or killed in accidents. For a free no obligation consultation with a semi truck accident attorney call the Baumgartner law firm at 281-587-1111.