Bill > HB946

This bill introduces new regulations for automobile insurance claims in Texas, specifically prohibiting oral releases of claims. The legislation defines key terms such as "claimant" (an insured person or individual with a property damage or injury claim), "injury" (bodily or psychological harm), and "oral release" (a verbal agreement to settle claims for compensation). The bill applies to all automobile insurers in the state, including various types of insurance companies. Under the new law, insurers and claimants are prohibited from entering into oral releases for property damage or injury claims covered by automobile insurance policies. Any release of claims must now be a separate, written agreement to be legally enforceable. The legislation will take effect on September 1, 2025, and will only apply to contracts entered into on or after January 1, 2026, meaning existing contracts will continue to be governed by previous laws. The primary aim of this bill appears to be protecting claimants by ensuring that insurance claim settlements are more formally documented and preventing potential coercion or misunderstanding that could occur with verbal agreements.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB946