Texas Homeowners Insurance Fight Sparks Accusations of Corruption

A recent report implies that a proponent of a failed Texas homeowners insurance reform bill asked Governor Greg Abbott to “personally intervene” on behalf of his organization. The report shows emails between Texans for Lawsuit Reform CEO Richard Weekley and Governor Abbott regarding a measure that would make it more difficult for policy holders to file Texas homeowners insurance claims. Mr. Weekley has been a major contributor to Gov. Abbott’s campaigns, so the communications have sparked accusations of corruption in the governor’s office.

Texas Homeowners Insurance Reform Bill Would Have Limited Lawsuits

The bill, known as Senate Bill 1628, would have protected Texas homeowners insurance providers, adjusters and agencies from liability in a claims lawsuit. Sen. Larry Taylor (R-Friendswood) proposed the Texas homeowners insurance reform bill as a “consumer protection” measure during the legislative session. Sen. Taylor also co-owns an insurance agency near Houston, which prompted many calls from legislators and industry observers about an apparent conflict of interest. The bill passed the Senate, but failed to earn support in the House before the end of the legislative session.

Texas Homeowners Insurance Reform and “Consumer Protection”

Mr. Weekley and his group have claimed that their mission is to protect Texas homeowners insurance policy holders. Sherry Sylvester, a spokeswoman for the group, said that the emails expressed urgency about what they call “massive lawsuit abuse” by a “litigation machine.” They also claim that Texas homeowners insurance customers will have their premiums increased or their coverage denied due to the number of lawsuits filed against insurance providers.

Political Contributions Shape Texas Homeowners Insurance Debate

Both sides of the Texas homeowners insurance reform argument have put considerable funds into the campaign coffers of politicians from both sides of the aisle. Records from the Texas Ethics Commission show that Mr. Weekley has contributed more than $720,000 to Governor Abbott’s political campaigns since 2001. The emails from Mr. Weekley to Governor Abbott state that Texas homeowners insurance trial attorney Steve Mostyn had donated “$25 million to Democrats over the last five years.”

Abbott: “We Are Working On” Texas Homeowners Insurance Reform

The report showed that someone in the Governor’s office responded to Mr. Weekley’s calls for Texas homeowners insurance reform with the message, “We are working on it. Spoke with the Speaker about it earlier today.” The message did not show who sent the response, but the fact that it came from the governor’s office has sparked accusations of “pay-to-play” from U.S. Rep. Joaquin Castro, a Democrat from San Antonio. Texas Democratic strategist Matt Angle said that the emails are proof that the governor “only gets fully animated when he (can) help a donor or a political supporter.”

Source: Texas Tribune

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