You can’t make this stuff up. (and I didn’t)
Yesterday the Texas Department of Insurance Companies issued a revised “example” language by the Farm Bureau concerning their proposed use of mandatory binding arbitration in their home contracts. Today that revision is gone.
According to the example language provided by Farm Bureau, in exchange for a discount on a homeowners premium, Farm Bureau will pick the arbitration firm, the terms of the arbitration, and will limit discovery. This is what Texas Watch has called a Kangaroo Court. Previously the example had only Conflict Solutions of Texas as their arbitration company of choice. Yesterday they added the grand daddy of all arbitration companies, the American Arbitration Association. Today the AAA have been removed.
In the words of Donald Trump “What the hell is going on?”.
It doesn’t take a rocket scientist to figure out who is behind the hearing and use of arbitration. Consumers did not request this change, they are too ignorant on the issue. The consumer organizations did not request this change, they are too educated on the issue. The insurance industry is the only organization that will benefit from the use of this option.
And now just days before the hearing they are changing their proposed language. As we have seen in the home building industry what they say is only valid on the day they say it. If you don’t like it, wait for tomorrow.