About The Business-Killing Bill

“This is without a doubt the worst piece of anti-business legislation supposedly being brought by a tort reform group that I have ever seen since working at the Capitol.”

— That’s what one veteran observer told the Austin-American Statesman about a piece of legislation currently being considered by the Texas House and Texas Senate.

SB 1628 is bad for businesses and homeowners. The bill protects insurance companies, agents and adjusters from liability for bad conduct – including unfair claims handling and denial or delay of paying valid claims; while exposing insurance policyholders and businesses to possible criminal charges.

  • The bill provides immunity for insurance agents and adjusters – no matter how outrageous the misconduct.
  • The bill will lead to backlogged federal court forum-shopping for foreign insurance companies at the expense of Texas businesses and consumers.
  • The bill would eliminate the penalties for unfair claim denials, leaving Texas businesses and families without protection from bad actors.
  • By deleting language to place public adjusters under the barratry statute, the bill actually weakened solutions to the actual problem.
  • The bill shifts the insurer’s work onto the home or businesses owner, with the possibility of a Class A misdemeanor if they make a mistake.
  • The bill creates a loophole to allow insurance companies to deny and and in bad faith on any property damage claim.