Bill to impose statutory timelines and appraisal rules for property/casualty claims stalls after heavy industry pushback

Senator Joshua Bryant introduced legislation designed to address long insurance‑claim disputes by specifying statutory timelines, procedures and remedies for property and casualty claims. Bryant said the bill was written after constituent cases — including a protracted roof claim and a motel dispute — exposed ambiguity in how timelines and appraisal processes are applied.

An Insurance Department witness explained that Rule 43 currently governs claim-adjudication timing and contains a "reasonable time" exception that has allowed P&C insurers more leeway than health carriers, which generally must act within 30 days for certain claims. That witness said the department has improved timelines for health and drug claims but has not recently revisited Rule 43 for P&C claims.

Industry witnesses, including counsel for carriers, urged the committee to pursue rulemaking instead of statutory changes. Derek Smith, representing State Farm, pointed to provisions in the proposed statute that could deem a claim admitted after 75 days and that could require appraisals even where coverage may not exist; Smith said that statutory rigidity could create "confusion" for carriers about extension processes and litigation exposure. Other lawyers warned the bill would force carriers to participate in appraisal or arbitration even when there is a legitimate coverage dispute, a step they said could be costly and unnecessary.

Senators explored compromise approaches — including setting monetary thresholds for arbitration and directing the department to adopt tighter rule language — but after debate the committee voted and the bill did not pass. Bryant said he would consider rulemaking and additional drafting, but the committee record shows the measure failed to advance.