Enrolled Bill Summary

            Senate Bill 127 amends the Insurance Code to place restrictions on the use of claims history for water damage and to authorize the commissioner of insurance to adopt rules identifying the types of water damage claims that require more prompt, efficient, and effective processing and handling than claims handled under provisions requiring the prompt payment of insurance claims generally. The bill also establishes licensing requirements relating to public insurance adjusters, defined as persons paid to act on behalf of or to aid an insurance policyholder in negotiating the settlement of a claim for loss or damage to real or personal property, with certain exceptions. The bill establishes that a person or entity who provides the services of a public insurance adjuster without a license commits a Class B misdemeanor offense and authorizes the commissioner to assess an administrative penalty against a licensee who engages in unfair competition or unfair trade practices. The bill sets out other requirements relating to the regulation of public insurance adjusters, including licensing examinations and fees, financial responsibility, trainee certificates, contracts, ethics, continuing education, commissions, and recordkeeping. It establishes criteria for prohibited conduct and grounds for denial, suspension, or revocation of a license, and provides for fines, criminal penalties, and other sanctions.