1-1     By:  Garcia (Senate Sponsor - Gallegos)               H.B. No. 2503

 1-2           (In the Senate - Received from the House May 8, 1997;

 1-3     May 9, 1997, read first time and referred to Committee on Economic

 1-4     Development; May 18, 1997, reported favorably by the following

 1-5     vote:  Yeas 11, Nays 0; May 18, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to certain solicitations made in relation to insured fire

 1-9     losses; providing a penalty.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Subchapter A, Chapter 21, Insurance Code, is

1-12     amended by adding Article 21.07-5 to read as follows:

1-13           Art. 21.07-5.  PUBLIC ADJUSTERS; PROHIBITED CONDUCT

1-14           Sec. 1.  DEFINITIONS.  In this article, "public adjuster"

1-15     means a person who:

1-16                 (1)  represents a named insured in an insurance policy

1-17     that covers damage to property by:

1-18                       (A)  giving advice to the named insured regarding

1-19     a first-party claim for damage to property; or

1-20                       (B)  preparing or negotiating the claim; and

1-21                 (2)  directly or indirectly solicits from the insured

1-22     or the insured's representative the right to provide the  services

1-23     described by Subdivision (1) of this section.

1-24           Sec. 2.  PROHIBITED CONDUCT RELATING TO FIRE LOSS.  A person

1-25     may not, in person, in writing, through an agent, or by telephone,

1-26     offer to provide services as a public adjuster to another person in

1-27     relation to damages from a fire that may be subject to a

1-28     first-party claim under an insurance policy:

1-29                 (1)  during the fire; and

1-30                 (2)  before the second day after the date on which the

1-31     fire is extinguished.

1-32           Sec. 3.  PENALTY.  A person commits an offense if the person

1-33     violates Section 2 of this article.  An offense under this section

1-34     is a Class C misdemeanor.

1-35           SECTION 2.  This Act takes effect September 1, 1997.

1-36           SECTION 3.  The importance of this legislation and the

1-37     crowded condition of the calendars in both houses create an

1-38     emergency and an imperative public necessity that the

1-39     constitutional rule requiring bills to be read on three several

1-40     days in each house be suspended, and this rule is hereby suspended.

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