August 10, 2017

Via electronic mail (Mark.Einfalt@tdi.texas.gov)

Texas Department of Insurance
Attn: Deputy Commissioner Mark Einfalt
Compliance Division
P.O. Box 149104
Austin, Texas 78714-9104

Re: Investigation of insurance industry’s auto repair practices; threats to public safety

Dear Mr. Einfalt,

Texas families face threats from the insurance industry’s corner cutting on automobile repairs. We
request that the Texas Department of Insurance (TDI) mount an immediate and thorough investigation
into industry practices, taking vigorous enforcement action in order to uphold the agency’s statutory
duty to “protect and ensure the fair treatment of consumers.”

In 2011, TDI noted its “concerns that setting reimbursement rates artificially low for specific motor
vehicle repairs and parts that are used to make the repairs may lead to substandard repairs.” 1 Recent
reporting demonstrates that these valid concerns are all-the-more relevant today. 2 When insurers steer
the public to their preferred body shops, whether directly or indirectly through financial pressure tactics,
and then push body shops to make cheap, substandard repairs, the consequences are devastating.

Texas laws intend for the public to be protected from these practices, but laws are just ink on paper
until they are enforced through our courts and agencies. 3 We ask TDI to hold industry wrongdoers
accountable through all available means and without delay given the many lives at stake.

Respectfully,

Ware Wendell
Executive Director

1
“Commissioner’s Bulletin # B-0026-11,” Texas Department of Insurance, 6/20/11,
http://www.tdi.texas.gov/bulletins/2011/cc25.html.
2
See, e.g., “Dallas lawyer: State Farm directed shoddy hail damage repair that trapped couple in burning car,”
Tracy M. Cook, Dallas Morning News, 8/5/17, https://www.dallasnews.com/business/autos/2017/08/04/dallas-
lawyer-state-farm-directed-shoddy-hail-damage-repair-trapped-couple-burning-car; “Hidden car repair led to
disfiguring injuries, couple claims,” Jason Whitely, WFAA, 7/26/17, http://www.wfaa.com/news/local/dallas-
county/hidden-car-repair-led-to-disfiguring-injuries-couple-claims/459811762.
3
See, e.g., TEX. INS. CODE § 1952.301, et seq.; 28 TEX. ADMIN. CODE § 5.501; & TEX. PEN. CODE § 32.42.
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