FOR IMMEDIATE RELEASE
May 14, 2015
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AUSTIN, TX – Today, SB 1060 authored by Senator Juan "Chuy" Hinojosa passed unanimously out of the Texas Senate. Over the last few years, various catastrophic weather-related events have resulted in tens of thousands of claims field against property and casualty insurers statewide, resulting in mass litigation. SB 1060 targets solicitation practices by an emerging industry in Texas of public insurance adjusters taking advantage of insurance claims for significant personal financial gain.
Senator Hinojosa issued the following statement:
"I am pleased with the strong unanimous support for this legislation as we recognize that industry practices by public insurance adjusters need reform to protect our Texas homeowners.
It is all too common that following a natural disaster such as a hail storm, hurricane, or tornado, public adjusters come knocking on doors to sign up homeowners with promises of free estimates and monetary gain. These adjusters then have property owners sign contracts that they in turn sell to attorneys for a fee to file lawsuits. They often solicit and sell hundreds of contracts in bulk.
This solicitation of contracts affects homeowners' insurance premiums and coverage, and cause insurance costs to significantly soar for all our Texas taxpayers. SB 1060 regulates public insurance adjusters and prohibits them from soliciting contracts and selling to attorneys, and ensures that a public adjuster may not accept any form of payment or compensation, other than the amount owed under a contract with the insured, for a claim for loss or damage that the license holder negotiates, investigates or adjusts on behalf of an insured."
SB 1060 now goes to the Texas House for consideration.