By Garcia                                             H.B. No. 2503

         75R5082 DLF-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to certain solicitations made in relation to insured fire

 1-3     losses; providing a penalty.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subchapter A, Chapter 21, Insurance Code, is

 1-6     amended by adding Article 21.07-5 to read as follows:

 1-7           Art. 21.07-5.  PUBLIC ADJUSTERS; PROHIBITED CONDUCT

 1-8           Sec. 1.  DEFINITIONS.  In this article, "public adjuster"

 1-9     means a person who:

1-10                 (1)  represents a named insured in an insurance policy

1-11     that covers damage to property by:

1-12                       (A)  giving advice to the named insured regarding

1-13     a first-party claim for damage to property; or

1-14                       (B)  preparing or negotiating the claim; and

1-15                 (2)  directly or indirectly solicits from the insured

1-16     or the insured's representative the right to provide the  services

1-17     described by Subdivision (1) of this section.

1-18           Sec. 2.  PROHIBITED CONDUCT RELATING TO FIRE LOSS.  A person

1-19     may not, in person, in writing, through an agent, or by telephone,

1-20     offer to provide services as a public adjuster to another person in

1-21     relation to damages from a fire that may be subject to a

1-22     first-party claim under an insurance policy:

1-23                 (1)  during the fire; and

1-24                 (2)  before the second day after the date on which the

 2-1     fire is extinguished.

 2-2           Sec. 3.  PENALTY.  A person commits an offense if the person

 2-3     violates Section 2 of this article.  An offense under this section

 2-4     is a Class C misdemeanor.

 2-5           SECTION 2.  This Act takes effect September 1, 1997.

 2-6           SECTION 3.  The importance of this legislation and the

 2-7     crowded condition of the calendars in both houses create an

 2-8     emergency and an imperative public necessity that the

 2-9     constitutional rule requiring bills to be read on three several

2-10     days in each house be suspended, and this rule is hereby suspended.