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By:  Wise                                                         H.B. No. 82 



A BILL TO BE ENTITLED

AN ACT

relating to license reciprocity for out of state insurance 
adjusters who provide services following a catastrophe or 
emergency.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 2(a), Chapter 407, Acts of the 63rd 
Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's 
Texas Insurance Code), is amended to read as follows:
	(a)  No person shall act as or hold himself out to be an 
adjuster in this state unless then licensed therefor by this state, 
except that an individual, who is undergoing education and training 
as an adjuster under the direction and supervision of a licensed 
adjuster, may for a period not exceeding 12 months act as an 
adjuster without having an adjuster's license, if at the beginning 
of such training period, the name of such trainee has been 
registered as such with the commissioner.  No license shall be 
required under this article of a nonresident insurance adjuster 
[for the adjustment in this state of a single loss, or losses 
arising out of a catastrophe common to all such losses, or] who is 
acting as a temporary substitute for a licensed adjuster, unless as 
outlined specifically in a separate section of this law.
	SECTION 2.   Section 5, Chapter 407, Acts of the 63rd 
Legislature, Regular Session, 1973 (Article 21.07-4, Vernon's 
Texas Insurance Code), is amended to read as follows:
	Sec. 5.  EXCEPTION FOR CERTAIN CATASTROPHE OR EMERGENCY 
ADJUSTERS. (a)  A nonresident insurance adjuster may adjust, 
without a license issued by this state, a single loss, or losses 
arising out of a catastrophe or emergency common to all the losses, 
if:
		(1)  the [In the event of a] catastrophe or emergency 
[which] arises out of a disaster, act of God, riot, civil commotion, 
conflagration or other similar occurrence in this state;
		(2)  the adjuster is licensed in another state; and                    
		(3)  the adjuster is employed by[, the commissioner 
shall, upon application, issue an emergency license to persons who 
are residents or nonresidents of this state and who may or may not 
be otherwise licensed adjusters.  Such emergency license shall 
remain in force for a period not to exceed 90 days, unless extended 
for an additional period of 90 days by the commissioner. The 
applicant must be certified by (i) a person licensed under the 
provisions of this Act, or by (ii)] an insurer which maintains an 
office in this state and is licensed to do business in this state.
	(b)  The emergency [licensed] adjuster and the [or] insurer 
who employs the emergency adjuster [certifies said applicant] under 
the provisions of this section of this Act shall be responsible for 
the loss or claims practices of the emergency adjuster [license 
holder.
	[Within five days of any applicant commencing work as an 
adjuster hereunder, the employer of such adjuster shall certify to 
the commissioner such application without being deemed in violation 
of this Act, provided that the commissioner may, after notice and 
hearing, revoke said emergency license upon the grounds as 
otherwise contained in this Act providing for revocation of an 
adjuster's license.
	[The fee for an emergency license shall be in an amount not to 
exceed $20 as determined by the board and shall be due and payable 
within 30 days of the issuance of such emergency license].
	SECTION 3.   This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.