Yesterday, TDI held a hearing on Farm Bureau’s request to offer optional mandatory mediation-arbitration endorsements in certain homeowner’s policies. You can read about it here. I discussed some of the issues here.
Here’s Farm Bureau’s explanation on why it wants to write the endorsement:
Stephens said many unique factors prompted the Farm Bureau — which only serves Texas and is not publicly traded — to ask permission to “try something different” to help its bottom line.
That included a dramatic rise in lawsuits in South Texas and along the Gulf beginning in 2012. The rate of disputed claims in those regions, he said, outpaced the rest of the state by nearly 30-fold.
That last sentence tells the tale. Farm Bureau has been pounded with lawsuits in the Valley in the last few years. It wants to stem the tide.
Apparently, insurance commissioner David Mattax didn’t tip his hand on whether TDI would allow Farm Bureau to write the endorsement. Stay tuned.