Insurance special interests are once again trying to rob ...files.constantcontact.com/37030628001/508a889e-dc5a-4530-b47f-… · constituents and communities." 1. The Texas Department

NO BLUE TARP BILLSInsurance special interests are once again trying to rob Texas policyholders of their constitutional rights.Tell lawmakers to stand for their constituents and preserve policyholder protections.

SB 10 and HB 1774

Courtesy of TexasWatch.orgWare Wendell

1600 Airport Freeway #300, Bedford, TX 76022Main)800-803-9776 O)817.458.3056 F)817.977.0195

www.suncoastclaims.com Email: [email protected] Texas License 1586009

Texans pay their premiums in exchange for a promise -- a promise that when disaster strikes, their claims will be paid in full and on time. But, too often Texas families and businesses are unfairly denied, delayed, and underpaid on their valid claims. Now, insurance lobbyists have come to the Texas Capitol for policyholders' last line of defense: their legal rights. SB 10 and HB 1774, more aptly called the "Blue Tarp Bills," lessen penalties for insurers and prolong the rebuilding process for Texas communities. Families, businesses, churches, and schools need full payment from their carriers to rebuild after disaster. If insurance lobbyists have their way, Texas will be blanketed in blue tarps. Tell the Texas Legislature to stand with Texas families, businesses, churches, and schools by signing the petition to #protectpolicyholders today.

SB 10 and HB 1774, more aptly referred to as the Blue Tarp Bills, burden all property owners in getting all property claims paid on time and in full. Families, businesses, schools, and churches with water damage, fire damage, windstorm damage, and more will have even more difficulty in starting the rebuilding process. If insurance lobbyists have their way, the state will be blanketed in blue tarps.

TexasWatch.org

1. THE BLUE TARP BILLS REDUCE SLOW PAY PENALTIES FOR INSURERS.

2. THE BLUE TARP BILLS BURDEN TEXANS WITH EVEN MORE DELAY AND COSTS.

3. THE BLUE TARP BILLS WEAKEN POLICY HOLDERS' CHANCES OF RECOVERY.

Insurance Lobbyists and Texans for Lawsuit Reform (TLR)

http://www.texaswatch.org/texans-want-policyholder-protections

In the years that insurers have claimed a crisis, carriers have raked in billions. Outperforming the nation in profitability for three years running, Texas homeowners insurance carriers have been making profits hand over fist.

The Insurance Hustle

When the Laws Work, Let them Work

Public Insurance Adjuster Renewals Decline

The 84th Texas Legislature passed tough new laws on public insurance adjusters to ensure they cannot abuse insurers or policyholders.SB 1060 requires public insurance adjusters to actually do their job, prohibits solicitation of cases on behalf of attorneys, and prohibits referral payments. HB 1265 makes public insurance adjuster solicitation, whether direct or indirect, a Deceptive Trade Practice Act violation, exposing adjusters to full accountability through our civil justice system for their wrongful acts.Recently compiled figures released by the Texas Department of Insurance show that these strong laws are having an effect. New public insurance adjuster license applications, issuances, and especially renewals have dropped significantly in 2016.Any public insurance adjusters intent on running cases and scamming the public receive no quarter in Texas. SB 10 and HB 1774 tip the balance in favor of insurance companies, which would have catastrophic consequences for the Texas economy.

These Scams are Being Repeated, and are IllegalWhether by Contractors, PAs, or Attorneys

Ware Wendell, Executive Director of Texas Watch, released the following statement in response to the filing of SB 10 & HB 1774 (i.e., the "Blue Tarp Bills"):"SB 10 and HB 1774, more aptly referred to as the "The Blue Tarp Bills," lessen penalties for insurers and prolong the rebuilding process for Texas communities. Texans purchase insurance to protect us in our time of need. When insurers cheat their customers by denying, delaying, and underpaying valid claims, our entire state suffers. Families, businesses, churches, and schools need full payment from their carriers to rebuild after disaster. Lessening penalties and pushing cases into already-clogged federal courts only makes it more likely insurers will leave property owners in the lurch in order to further pad their profits. If insurance lobbyists have their way, Texas will be blanketed in blue tarps. The Texas Legislature must stand firm against this attack on their constituents and communities."

1. The Texas Department of Insurance (TDI) has determined that the litigation rate is only 1.5% to 2% of claims. (Page 10 of TDI Report.)2. TDI has determined that there is not "a clear pattern of average premiums increasing greater than the statewide average in areas experiencing increased amounts of attorney/PA involvement and litigation." (Page 75 of TDI Report.)3. TDI has determined that the homeowners insurance market in Texas "has become less concentrated with more competition." (Page 72 of TDI Report.)4. TDI has determined that insurers do not reopen claims in significant numbers absent a lawsuit. This means that policyholders are being forced into litigation by their insurers in order to receive fair treatment. (Page 33 of TDI Report.)

5. Texas homeowners insurers have pocketed over $4.5 billion dollars in underwriting profits in the time they've been crying "crisis." They have netted more than the national average in this timeframe as well. (See TDI and NAIC data at www.texaswatch.org/protectpolicyholders. See also page 54 of TDI Report.)6. Policyholders are already required to provide prior notice of their claims under the law. (See Sec. 541.154 of TEX. INS. CODE & Sec. 17.505 of TEX. BUS. & COM. CODE.)7. The Blue Tarp Bills are not limited to hail claims; they apply to all property damage claims, including those caused by tornadoes, fire, and burst pipes. The word "hail" never appears in the bills. The bills impact all property owners -- families, businesses, churches, and schools alike. (See proposed Sec. 542A.002 of the TEX. INS. CODE in the legislation.)Founded in 1998, Texas Watch is a non-partisan, non-profit citizen advocacy organization that is active on issues related to policyholders, other consumers, and public safety. For more, please visit http://www.texaswatch.org/protectpolicyholders.

Legislation two years ago was supposed to fix the

problem - SB 1060

Abuses by a few Bad Actors - Contractors, PAs, and Attorneys - Create Industry Over-Regulation of Good

Contractors and PA’s. This Hurts Texas Consumers.

Goal is to be Self-Regulating and Professional!

• Recommendations

• Avoid UPPA - Unauthorized Practice of Public Adjusting

• Avoid UPL - Unauthorized Practice of Law

• Non-PAs - Don’t Quote the Policy or Engage in Public Adjusting

• Non-Attorneys - Don’t Quote the Law or Engage in the Practice of Law

• More Recommendations

• Furnish a Complete Estimate and Proposal

• Be Nice

• Don’t Argue

• Don’t Negotiate

• Don’t Threaten

• Don’t Think a POA or AOB Will Protect You

• Don’t Use a Contingency Contract

• Know Your Business

• Know the Roof

• Know Your Material and Labor Costs

• Know Job Site Conditions

• Know Your Own Overhead

• Know Your Own Historical Profit Margin

• Know the Manufacturer Recommendations

• Know the Building Codes

• Know the Definition of a Direct Job Cost

• Recommendations for Contractors

• Adjuster Requires License & Cannot Take Repair $$

• Don’t Advertise You Specialize in Claims

• Don’t Engage in Case Running

• Know Your Business Model

• Take Care of Your Customers

• Know When and How to Refer A Public Adjuster

• Have Realistic Expectations of the Time Element

• Problems with SB10 HB1774

• Protects Carrier Adjusters from Lawsuits

• Lowers Penalties for Carrier Bad Behavior

• Creates Claimant Penalties & Limits

• Creates Additional Hurdles for Insured

• Will Result in Moving Insurance Claims to Federal Court

• Protects Big Out of State Business

• Hurts Local Small Business

• Why We Don’t Need SB 10 HB1774

• Lawsuits Are Generally Not on the Rise Statewide

• PA Involvement is Not Generally Increasing

• Abuses Are Limited and Covered by Existing Law

• No Need to Target All the Good Actors

• Final Recommendations for Contractors

• Abide by Industry Ethics Standards

• Use Reputable Public Adjusters

• Adopt a set of Best Practices for Your Company

• We referring a Contractor, we recommend NTRCA and RCAT members

• When referring a PA, we recommend a TAPIA member

• Know the Law and the Regulations

Don WoodSuncoast Claims Inc.

www.suncoastclaims.comOffice: 800-803-9776

TAPIATexas Association of Public Insurance Adjusters

www.mytapia.orgOffice: 512-299-6680

Don WoodPresident, Suncoast Claims Inc.

Member of Texas Association of Public Insurance Adjusters (TAPIA)ACA Accredited Claim Adjuster

CPE Certified Professional EstimatorWIND Certified AppraiserWIND Certified Umpire

Academic CredentialsB.A., Southeastern University (l971)

Majors: History, BibleNational Merit Scholar Finalist (1967)

Continuing Education (Hundreds of Hours)

Licenses (Prior & Current)Licensed First American National Securities (1987)

Licensed Texas Group I Life Insurance (1987)Licensed Florida Class A Registered General Contractor (1988-1995)

Licensed Texas Real Estate Agent (1982)Licensed New Jersey Public Adjuster (2012-2014)Licensed New York Public Adjuster (2012-2013)

Licensed Louisiana Public Adjuster (2009)Licensed North Carolina Adjuster (1995-1997, 2001-Current)

Licensed Florida Public Adjuster (Current)Licensed Texas Public Adjuster (Current)

Licensed North Carolina Public Adjuster (Current)Licensed Georgia Public Adjuster (Current)

Licensed Oklahoma Public Adjuster (2013-2015)Licensed South Carolina Public Adjuster (Current)

Licensed Colorado Public Adjuster (Current)

Professional AssociationsNational Association of Public Insurance Adjusters (NAPIA)

Texas Association of Public Insurance Adjusters (TAPIA)American Society of Professional Estimators (ASPE)

International Code Council (ICC) Windstorm Network

Prior Professional ExperienceRegistered General Contractor in Florida

Engineering/Construction team on industrial projects in LouisianaGeneral Manager for national homebuilder in North Carolina

Project Manager for national homebuilder and land developer in TexasGeneral Manager for Canadian town-home builder in Texas

Construction Superintendent on shopping centers and churches in Florida and TexasDesigned, estimated, and built custom homes in Texas and North Carolina

Property Staff Insurance Claim Representative with Allstate Insurance, North CarolinaClaim Representative with General Adjustment Bureau in Las Alamos, New Mexico

Estimated repairs for insurance claims after Hurricane Andrew, Florida

Publications“How to Estimate the Cost of Roofing Damage to Residential Properties,” Estimating Today, October 2012

“Depreciation of Intangibles Under Property Insurance Policies,” Winter 2013 NYSBA Torts, Insursance & Compensation Law Journal, Vol. 42 No 1, 2013

“Suncoast Claims - Firm Focus” TAPIA Times, Spring 2014