Businesses Across

Texas Say NO to
TLR’s Insurance Bill
“While the bill is generally objectionable in the manner it weakens protections
traditionally given to property owners, we are particularly concerned with the provisions
that add procedural hurdles for property owners seeking to enforce their rights.”
– Troy Keller, Vice President Government Affairs
Huntsman Corporation
The Woodlands

“Put simply, this Insurance bill does more harm to Texas business policyholders than it
does to prevent litigation abuses by homeowners or their storm-chasing lawyers. The bill’s
proposed changes will significantly diminish the safeguards provided under the Texas
Insurance Code and thwart Texas businesses from recovering legitimate claims under
their insurance policies they purchased at great cost.”
– Ernest Martin, Jr.
Haynes and Boone, L.L.P.
on behalf of 7-Eleven; Alpha-Barnes Real Estate Services; Double Diamond Companies;
EnLink Midstream; EXCO Resources, Inc.; Greater Dallas, LP; Hulcher Services; JPI
Investment Company, LP; La Quinta Inns & Suites; Origin Bank; NCH Corporation; Ryan
LLC; Sovereign Bank; Stevens Transport; VTK Development Inc.
Dallas

“CSSB 10 and its companion in the House alter the balance between Texas businesses and
their insurers in an unfavorable and unnecessary way.”
– Robert J. Ryan, Deputy General Counsel
Stallion Oilfield Services Ltd.
Houston
“My point is that we should not sacrifice protections that have served everyone else well
because of the actions of the few.”
– John Carona, Chairman & CEO
Associa
Dallas

“While I understand S.B. 10 and H.B. 1774 were introduced to address perceived abuses in
pursuing hailstorm claims under homeowners’ policies, the bill does not serve that
intended purpose and instead greatly harms Texas businesses, including the corporate
clients I serve.”
– Aaron Howes, Corporate Managing Director
Savills Studley
Houston

“Senate Bill 10 and its House counterpart devalue our insurance by eliminating many of
the protections traditionally provided to policyholders in Texas.”
– E. Javier Loya, Chairman & CEO
OTC Global Holdings
Houston

“We pay significant premiums to protect our business, and we pay those premiums in good
faith and with a reasonable expectation that our claims will be paid. If insurance
companies have little incentive to act in good faith and pay our claims, how can we protect
our business? Nothing in SB 10 gets our claims paid more quickly.”
– David Stein
Budget Leasing, Inc. Automotive Group
Austin

“This is not tort reform – it doesn’t make the law more fair – it’s simply special interest
legislation at its worst.”
– Tyrell L. Garth
Cheyenne Capital
Beaumont
“Passing these bills would limit the protections that are needed for policyholders for small
businesses like me.”
– Harold Price
Frank’s Hardware
Pampa

“If a small business owner has no recourse upon an insurance company that refuses,
discounts, and delays the claim to an owner’s building and property, but accepts all of the
premiums paid by that business owner over the years, the insurance has total control.
They walk around with a get-out-of-jail-free card. I refuse to support the idea of helping
insurance companies treat their insureds with bad faith.”
– Kenneth L. Bookout, CEO
Owl Ventures LTD
McAllen

“As a Texas business we need the protections and safeguards of the Texas Insurance Code
to incentivize insurance companies to do the right thing. What we do not need is for a law
to be passed that makes it more difficult to get paid for legitimate claims.”
– Rick Rodriguez, CEO
Brass Commercial Real Estate Properties
San Antonio

“It is already hard enough to fight insurance companies in Texas, which is why I am
against any effort to further dilute policyholder rights. We expect to have a wide array of
remedies against any insurance company that breaks the rules.”
– Daniel G. Zoch, Managing Director
The Carson Companies
Houston

“I simply cannot understand why insurance companies need more protection. Given my
experience in business, it seems the policyholder is the one that should be granted
additional protections from insurers that typically hold all the cards.”
– Bart Naik
Jayneil Corporation d/b/a Days Inn & Suites
Bay City
“I strongly oppose any changes of the law where it gives insurance companies more
opportunities to deny, delay or underpay claims like the one we had at our warehouse.”
– John McLeod
Lone Star Container
Irving

“I genuinely appreciate your efforts to take on this tough issue, but I can assure you –
having lived through this myself – that small businesses need more protections, not less.”
– Larry Rhea, CEO
Marsh Electric
Amarillo

“As a small business owner in Texas, it is imperative to believe that in the event of
damage and/or business interruption, our insurance coverage will be easily utilized
without red tape and endless benefits to a provider that has collected premiums year after
year.”
– Lisa Bland
Orange County Fabrications, Inc.
Orange

“Small businesses are the backbone of this State, and there is not a single thing in these
bills I have seen that helps the consumer.”
– LeRoss & Ruth Thompson
Trassatts Corporation, Country Club Oaks Corporation and Bent Creek Oaks Corporation
Dallas

“Both the insurance company and their adjusters must be held accountable otherwise, the
insurance companies will take advantage of their policyholders.”
– Daniel Sandoval
Danaby Rentals, Inc.
Edinburg
“Any new law that impedes an attorney from holding an insurer accountable is not good
for Texas small business.”
– Jeff H. Williams, President
Games People Play, Inc.
Beaumont

“It is my belief that the business community will be greatly affected adversely by this bill
if the current law is modified to help the insurer. I strongly oppose any legislation that
gives the insurance industry more leverage than they already have over businesses and
individuals.”
– Mark M. Johnson, Jr.
Luther King Capital Management
San Antonio

“From my reading of the proposed legislation, it appears to me that these bills make it
more difficult for those of us who have legitimate claims, under our insurance policies, to
receive prompt payment for those claims, by allowing insurance companies to delay
payment for covered losses to we should rightly be entitled.”
– Woody Mann, Jr., President
The Vista Companies
Houston

“The committee substitute for SB 10 as well as NB 1774 gives an insurance company a
way to skirt state law and require me to use the federal court system. Until convinced
otherwise and as a Texan, I prefer to use the courts of my state.”

–Chuck Nash, President
Chuck Nash Chevrolet Buick, Inc.
San Marcos
Aaron Howes
Corporate Managing Director

t: 713.237.5522
f: 713.522.3938

ahowes@savills-studley.com 333 Clay Street
Suite 3700
Houston, Texas 77002

March 9, 2017

The Honorable Kelly Hancock
Texas Senate
P.O. Box 12068
Austin, TX 78711

The Honorable Greg Bonnen
Texas House of Representatives
P. O. Box 2910
Austin, TX 78768

Re: SB 10 and HB 1774

Dear Senator Hancock and Representative Bonnen:

I oppose S.B. 10 and H.B. 1774. I am surprised these proposed laws have returned
after similar measures were defeated by businesses like mine last session.

As a commercial real estate professional in the State of Texas for almost 20 years I think
it is wrong to place any further burden upon Texas property owners and businesses. While I
understand S.B. 10 and H.B. 1774 were introduced to address perceived abuses in pursuing
hailstorm claims under homeowners’ policies, the bill does not serve that intended purpose and
instead greatly harms Texas businesses, including the corporate clients I serve.

Passing these proposed measures would limit the protections that are needed for
businesses like mine and penalize the policy holder.

I oppose this legislation. It will not be good for Texas property owners and businesses.

Sincerely,

Aaron Howes
Corporate Managing Director
March 6, 2017

The Honorable Kelly Hancock
Texas Senate
P.O. Box 12068
Austin, TX 78711

The Honorable Greg Bonnen
Texas House of Representatives
P. O. Box 2910
Austin, TX 78768

Re: SB 10 and HB 1774

Dear Senator Hancock and Representative Bonnen:

I oppose S.B. 10 and H.B. 1774. I am surprised these proposed laws have returned after
similar measures were defeated by businesses like mine last session.

By way of background, my firm is a developer and owner of industrial real estate in the
greater Houston area. Our portfolio includes approximately 5 million square feet with a value in
excess of $400 million. We spend a significant amount of money insuring our properties against
all forms of loss.

Passing these proposed measures would limit the protections that are needed for
businesses like mine. Having reviewed the bill, I cannot find a single thing in the proposed
legislation that is helpful to a business owner, unless you own an insurance company.

It is already hard enough to fight insurance companies in Texas, which is why I am
against any effort to further dilute policyholder rights. We expect to have a wide array of
remedies against any insurance company that breaks the rules.

Your proposed legislation would, among other things:

• Eliminate the 18% penalty interest, reducing it to 8%, incentivizing insurance companies
to delay claims.
• Require you on the front end to guess your exact damages and attorneys’ fees, before you
have any information about the claim, or discovery. My business does not have a crystal

CARSON DOMINGUEZ PROPERTIES, L.P. Carson Estate Trust www.carsoncompanies.com
9821 Katy Freeway, Suite 440, Houston, TX 77024 • 713/360-7929 FAX 713/360-7952
ball. If we guess wrong, my attorneys’ fees are reduced, meaning we, as the
policyholder, are not made whole.
• Adjusters that handle my claim can be granted immunity, if the insurance company
elects, which means we automatically end up in federal court – that means the case is
more expensive, takes longer, and is a greater burden to me.
• The insurance company can, at its discretion, accuse my lawyer of case-running, without
any basis, and potentially create a conflict requiring me to find new counsel, or worse,
having that case decided in mine!
• And if a court orders me to mediate in the first sixty days, we cannot.

I simply cannot understand why insurance companies need more protection. Given my
experience in business, it seems the policyholder is the one that should be granted additional
protections from insurers that typically hold all the cards.

Small businesses are the backbone of this State, and there is not a single thing in these
bills I have seen that helps the consumer. If you think otherwise, I would welcome a call from
you or your staff. Until that time, my business stands firmly opposed to these bills.

Sincerely,

Daniel G. Zoch
Managing Director
March 3, 2017

The Ifonornble Lois W. Kolkliorst
Texas Senate District \Q
P.O. Box 3 2068, Capitol Station
Austin, TX 78711

The Honorubie Dennis Bonnen
Tex9S I louse of Representatives
P. 0.Box 2910
Austin, TX 78768

The Honorable Joe Sti-tius. Ill
Speaker
Texas House oi'Rcpt'cscntalivcs
i 100 C onyrcs^; Avenue. Ruoin 2W, 13
Austin. Te>;tis7S701

The IIonombJe Kclly liancock
Chair. Semite Commitlce on Business & Commerce

l!0(Konm-essAve.,Rm. IE.9
Austin. Texns 78701

Re: jayneil CorporaUun's Opposition to SB 10 and HB 1774

Dear Senutor Koikhorst cind Representcitivo Bonnen:

I oppose S.li. 10 i\m\ H.B. 1774. I am surprised these proposed laws have returnecl afler
similar medsurcs were defeated by businesses like mine last session.

By way of background I <im the owner of Day.s Inn & Suites located 407 7t!i Street, Bay City,
Texas 77414. My business relies heavily on insurance. For example, our commemni {iroperlyis
our biggest ti.ssct and investment. Providing the utmost building quality, comfort, and mainlc'nance
ss critical for our customers. Unfortunately, we sustained hai! damage and were trpatcd unfairly by
our insurance company. We were forced to prosecute litigation in Texns state court against an out

ofstate insurance carrier in order to be made whole. Some ot'the consequences of the improper
deinys and denials from the insurance carrier can never be remedied. Thankfully, we had proper
laws and Courts in ptace to provide prutectiony from tiie insurance practices that we were first
subjected to.
Pdssin^ liu'se proposed measures would liniil llie prntpctiuns th^t arc- needed fof
businesses like mme. Having i-ovk'wei-l tlie bill, I cannot find a single tiling in thp proposed
lcgiskition tli<itis lielpful LIKI business owner, unless you own .in insurance company.

It is ^Ireddy tmnl enough to fight insurancL1 compiuiies in 'I'Rxas. Which is wtiy I urn ngninst
anyeftbi'l lo turtlier dilute policyhofdfr rights. Myl)tisine-is ptiys a consldemblc amount of money
ectchypnr in premiinnK, wliict) iswliywc expect to have F) wide;H'fciy of reineclies against any
iusui\][ic-p rnmpany tlial breaks flu1 rules.

Your propnseci legislation would, lUnong otticr things:

Hliminale the 1^% |)enHity iiilorcst, ryduL'ing it to 8%, incctiUvixingin(iur<mce companies to
delay claims.
• Require- you on tht1 front end to guess your exact chimagos dud attorneys' fees, before you
hiive ;iny information about llic cttihn, uf di.scovery. My imsitiL'ss does not liiive ti crystal
Eiall. If we guess wrong, my attorneys' fee.s ai'p rorinced, meaniny we, iLS llie policylioiclcr,
arc nut mdde whole.

Adjusters that handle my clciiui cdn btj granted immunity, if the insurance company elects,
which meitns we cUil,oni<Uit:alIy end up in f'oclcrnl cuurt - that mezm.s tlie case is more

expensive, takes longer, nnd i^ a gredlei- burden to ni(^,
• The insurance compnny can, cil jt.s discretion, accuse my IdwyRi'ot'case-running, wiltiout
;my basis, and potentially ct'e^te a connict rRqiiiring me to find new t'onnsel, or worse,
hiiving that case docidcd in mine!
• And if 3 coin t orders me to mpdiatc in Lhc first sixty rhiy.s, we cauiiut.

I simply cannot uuderstcind why insui'Hnce compnnios need more prulcclion. Given my
experience in business, it seems tht* policyholder is ttic one that shonid be granted additional
prutections from insurers that typically hold all thp cards.

Small businesses are thet)<ickhuneofthisStcite,rUul there is not a single thing in these bills I
have .seen that helps the con.sumer. If you Hunk otticrwise, 1 would welcome a ca!! from you or

your staff. Until that time, my business stnnds firmly opposed to these bills.

Sincerely, ^ — ^,
C3^)^^
^\3A^.r /y^^— ^-^ ^fl
JtiynL'it Corporation cl/b/a Days Inn & Suites
Orange County Fabrication, INC.
9627 Highway 12
Orange, Texas77632
Phone (409)988-6637

March 9, 2017

Senator Brandon Creighton 
      P.O. Box 12068 
Capitol Station 
     Austin, TX 78711  
 
Representative Dade Phelan ‐ District 21 
Room E1.324 
P.O. Box 2910 
Austin, TX 78768  
 
The Honorable Allan Ritter c/o Speaker’s Office 
Texas House of Representatives 
P. O. Box 2910 
Austin, Texas 78768‐2910 
 
RE: Opposition of Senate Bill 10 and House Bill 1774

Dear Sirs:

I am writing in opposition of Senate Bill 10 and House Bill 1774. This proposal is in no way a
support to Texas businesses. It is in fact, nothing more than a move to allow insurance
providers to increase their profits off the hard working backs of Texas business owners while
leaving them with a “hope for the best” philosophy in the event of catastrophe.

As a small business owner in Texas, it is imperative to believe that in the event of damage
and/or business interruption, our insurance coverage will be easily utilized to cover losses
without red tape and endless benefits to a provider that has collected premiums year after year.

Please support Texas business insurance policyholders by opposing these bills.

Sincerely,

Lisa Bland
Orange County Fabrication, Inc.
P.O. BOX 1007 SAN MARCOS, TEXAS 78667
AUTO GROUP SAN MA RCOS 353-7788 AUSTIN 477-3236
s-m. www.chucknash.com

CHEVROLET
1MIC

Hon. Dan Patrick
Lieutenant Governor of Texas
1100 Congress Av, Rm. 2E.13
Austin, Tx 78702

Re: CSSB 10/RB 1774

Dear Governor Patrick,

As a small business owner and on behalf of my dealership, Chuck Nash Chevrolet Buick, Inc., the
committee substitute for SB 10 as well as Fifi 1774, will not be beneficial for my business. In fact, I am
concerned that this legislation will be unfavorable to any business seeking to obtain a fair and jusi
settlement for a policyholder with weather-related damage to real property improvements.

The improvements and investment in my business are substantial. A slow-pay claim or a dispute
with an insurer has the potential to put my business and the needs of the community that I serve
needlessly at risk.

The committee substitute for SB 10 as well as NB 1774 gives an insurance company a way to
skirt state law and require me to use the federal court system. Until convinced otherwise and as a Texan,
I prefer to use the courts of my state.

A policyholder will be required under this legislation, to conduct a potentially costly investigation
and provide a pre-suit notice that includes “all acts or omissions” and “specific damages.” This notice
requirement places a potentially costly and likely unknowable burden on a policyholder.

I understand that barrahy is a concern; however, the proposed legislation jeopardizes the interests
of Texas’ businesses and its citizenry and I respectfhlly request that the focus be placed on this issue
without compromising a policyholder.

Sincerely,

Chuck Nash, President
Chuck Nash Chevrolet Buick, Inc.