By Wise H.B. No. 531
77R1298 MXM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to license reciprocity for out of state insurance
1-3 adjusters who provide services following a catastrophe or
1-4 emergency.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2(a), Chapter 407, Acts of the 63rd
1-7 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas
1-8 Insurance Code), is amended to read as follows:
1-9 (a) No person shall act as or hold himself out to be an
1-10 adjuster in this state unless then licensed therefor by this state,
1-11 except that an individual, who is undergoing education and training
1-12 as an adjuster under the direction and supervision of a licensed
1-13 adjuster, may for a period not exceeding 12 months act as an
1-14 adjuster without having an adjuster's license, if at the beginning
1-15 of such training period, the name of such trainee has been
1-16 registered as such with the commissioner. No license shall be
1-17 required under this article of a nonresident insurance adjuster
1-18 [for the adjustment in this state of a single loss, or losses
1-19 arising out of a catastrophe common to all such losses, or] who is
1-20 acting as a temporary substitute for a licensed adjuster, unless as
1-21 outlined specifically in a separate section of this law.
1-22 SECTION 2. Section 5, Chapter 407, Acts of the 63rd
1-23 Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's Texas
1-24 Insurance Code), is amended to read as follows:
2-1 Sec. 5. EXCEPTION FOR CERTAIN CATASTROPHE OR EMERGENCY
2-2 ADJUSTERS. (a) A nonresident insurance adjuster may adjust,
2-3 without a license issued by this state, a single loss, or losses
2-4 arising out of a catastrophe or emergency common to all the losses,
2-5 if:
2-6 (1) the [In the event of a] catastrophe or emergency
2-7 [which] arises out of a disaster, act of God, riot, civil
2-8 commotion, conflagration or other similar occurrence in this state;
2-9 (2) the adjuster is licensed in another state; and
2-10 (3) the adjuster is employed by[, the commissioner
2-11 shall, upon application, issue an emergency license to persons who
2-12 are residents or nonresidents of this state and who may or may not
2-13 be otherwise licensed adjusters. Such emergency license shall
2-14 remain in force for a period not to exceed 90 days, unless extended
2-15 for an additional period of 90 days by the commissioner. The
2-16 applicant must be certified by (i) a person licensed under the
2-17 provisions of this Act, or by (ii)] an insurer which maintains an
2-18 office in this state and is licensed to do business in this state.
2-19 (b) The emergency [licensed] adjuster and the [or] insurer
2-20 who employs the emergency adjuster [certifies said applicant] under
2-21 the provisions of this section of this Act shall be responsible for
2-22 the loss or claims practices of the emergency adjuster [license
2-23 holder.]
2-24 [Within five days of any applicant commencing work as an
2-25 adjuster hereunder, the employer of such adjuster shall certify to
2-26 the commissioner such application without being deemed in violation
2-27 of this Act, provided that the commissioner may, after notice and
3-1 hearing, revoke said emergency license upon the grounds as
3-2 otherwise contained in this Act providing for revocation of an
3-3 adjuster's license.]
3-4 [The fee for an emergency license shall be in an amount not
3-5 to exceed $20 as determined by the board and shall be due and
3-6 payable within 30 days of the issuance of such emergency license].
3-7 SECTION 3. This Act takes effect immediately if it receives
3-8 a vote of two-thirds of all the members elected to each house, as
3-9 provided by Section 39, Article III, Texas Constitution. If this
3-10 Act does not receive the vote necessary for immediate effect, this
3-11 Act takes effect September 1, 2001.