National Insurance Crime Bureau

New Texas Law Closes Fraud Loophole

DES PLAINES, Ill., Aug. 13, 2019 — The National Insurance Crime Bureau (NICB) today issued the following statement, attributed to its Vice President of Government Affairs Alan Haskins, regarding House Bill 2102, relating to deductibles.

“NICB’s core mission is to combat fraud. As fraud fighters we know that following any major hail or wind event, unscrupulous contractors swoop in and offer to waive a policyholder’s deductible leaving them at risk for incomplete or shoddy work. In many cases, the homeowners have no idea they have been involved in a fraud scheme by not paying their deductible. 

“HB 2102 closes the loophole by making it illegal for illegitimate contractors to promise homeowners that they can waive their deductible.

“This bill is a step in the right direction to protect consumers from certain roofing contractors, public adjusters, and plaintiffs’ attorneys who mislead storm victims and promise big payouts without any cost.

“It’s also important to talk with your insurance agent or company to review the terms of your insurance policies and to assess whether you have adequate home, auto, and other property coverage. If you do have property damage contact your insurance company or agent to begin the recovery process.”

The law goes into effect on September 1. 

Avoid Contractor Fraud Infographic

The following tips are also helpful:

  • Get more than one estimate
  • Don’t be pushed into signing a contract right away
  • Get everything in writing
  • Require references and check them out
  • Ask to see the contractor’s driver’s license and write down the number and the license plate on his or her vehicle

More consumer protection information is available in our library of brochures.

Media Contact

If you have a question, want further information on the NICB, or to discuss insurance fraud or vehicle crime, please contact:

Frank Scafidi
Director of Public Affairs
916.207.0154
fscafidi@nicb.org

Brooke Kelley
Vice President of Communications
847.544.7085
bkelley@nicb.org

Or, if you are a reporter and have a request or question, please complete the Media Request Form.

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.

About the National Insurance Crime Bureau: Headquartered in Des Plaines, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to preventing, detecting and defeating insurance fraud and vehicle theft through data analytics, investigations, learning and development, government affairs and public affairs. The NICB is supported by more than 1,300 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $496 billion in insurance premiums in 2018, or more than 81% of the nation's property-casualty insurance. That includes more than 92% ($254 billion) of the nation's personal auto insurance. To learn more visit www.nicb.org.