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A BILL TO BE ENTITLED
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AN ACT
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relating to the requirements for an insurance adjuster license. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4101.001(a), Insurance Code, is amended |
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to read as follows: |
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(a) In this chapter: |
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(1) "Adjuster" [, "adjuster"] means a person [an
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individual] who: |
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(A) [(1)] investigates or adjusts losses on |
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behalf of an insurer as an independent contractor or as an employee |
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of: |
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(i) [(A)] an adjustment bureau; |
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(ii) [(B)] an association; |
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(iii) [(C)] a general property and casualty |
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agent or personal lines property and casualty agent; |
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(iv) [(D)] an independent contractor; |
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(v) [(E)] an insurer; or |
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(vi) [(F)] a managing general agent; |
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(B) [(2)] supervises the handling of claims; or |
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(C) [(3)] investigates, adjusts, supervises the |
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handling of, or settles workers' compensation claims, including |
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claims arising from services provided through a certified workers' |
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compensation health care network as authorized under Chapter 1305, |
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on behalf of an administrator, as defined by Chapter 4151, or on |
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behalf of an insurance carrier, as defined by Section 401.011, |
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Labor Code. |
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(2) "Automated claims adjudication system" means a |
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computer program designed for the collection, data entry, |
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calculation, and final resolution of portable consumer electronic |
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insurance claims that a licensed independent adjuster, a licensed |
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agent, an officer of a business entity licensed under this chapter, |
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or a supervised individual uses as described by this chapter. |
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(3) "Business entity" means a corporation, |
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association, partnership, limited liability company, limited |
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liability partnership, or other legal entity. |
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(4) "Home state," with respect to an adjuster, means: |
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(A) the state in which the adjuster maintains the |
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adjuster's principal place of residence or business and is licensed |
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to act as a resident adjuster; or |
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(B) if the state of the adjuster's principal |
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place of residence or business does not license adjusters for the |
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line of authority sought, a state in which the adjuster is licensed |
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and in good standing and that is designated by the adjuster as the |
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adjuster's home state. |
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(5) "Person" means an individual or business entity. |
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SECTION 2. Section 4101.002, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsection (d) to read as |
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follows: |
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(a) This chapter does not apply to: |
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(1) an attorney who: |
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(A) adjusts insurance losses periodically and |
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incidentally to the practice of law; and |
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(B) does not represent that the attorney is an |
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adjuster; |
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(2) a salaried employee of an insurer who is not |
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regularly engaged in the adjustment, investigation, or supervision |
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of insurance claims; |
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(3) a person employed only to furnish technical |
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assistance to a licensed adjuster, including: |
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(A) an attorney; |
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(B) an engineer; |
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(C) an estimator; |
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(D) a handwriting expert; |
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(E) a photographer; and |
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(F) a private detective; |
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(4) an agent or general agent of an authorized insurer |
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who processes an undisputed or uncontested loss for the insurer |
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under a policy issued by the agent or general agent; |
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(5) a person who performs clerical duties and does not |
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negotiate with parties to disputed or contested claims; |
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(6) a person who handles claims arising under life, |
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accident, and health insurance policies; |
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(7) a person: |
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(A) who is employed principally as: |
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(i) a right-of-way agent; or |
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(ii) a right-of-way and claims agent; |
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(B) whose primary responsibility is the |
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acquisition of easements, leases, permits, or other real property |
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rights; and |
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(C) who handles only claims arising out of |
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operations under those easements, leases, permits, or other |
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contracts or contractual obligations; |
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(8) an individual who is employed to investigate |
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suspected fraudulent insurance claims but who does not adjust |
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losses or determine claims payments; [or] |
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(9) a public insurance adjuster licensed under Chapter |
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4102; or |
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(10) an individual who: |
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(A) collects claim information from, or |
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furnishes claim information to, an insured or claimant and enters |
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data into an automated claims adjudication system; and |
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(B) is employed by a licensed independent |
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adjuster or its affiliate under circumstances in which no more than |
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25 individuals performing duties described by Paragraph (A) are |
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supervised by a single licensed independent adjuster or a single |
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licensed agent. |
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(d) A licensed agent acting as a supervisor under Subsection |
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(a)(10) is not required to be licensed as an adjuster. |
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SECTION 3. Section 4101.053, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsections (c) and (d) to read |
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as follows: |
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(a) To qualify for a license under this chapter, an |
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individual [applicant] must: |
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(1) comply with this chapter; |
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(2) present evidence satisfactory to the department |
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that the applicant: |
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(A) is at least 18 years of age; |
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(B) resides in this state or a state or country |
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that permits a resident of this state to act as an adjuster in that |
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state or country; |
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(C) has complied with all federal laws relating |
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to employment or the transaction of business in the United States, |
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if the applicant does not reside in the United States; |
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(D) is trustworthy; and |
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(E) has had experience, special education, or |
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training of sufficient duration and extent regarding the handling |
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of loss claims under insurance contracts to make the applicant |
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competent to fulfill the responsibilities of an adjuster; and |
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(3) pass an examination conducted under this |
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subchapter or present evidence that the applicant has been exempted |
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under Section 4101.056. |
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(c) To qualify for a license under this chapter, a business |
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entity must: |
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(1) comply with this chapter; and |
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(2) present evidence satisfactory to the department |
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that the applicant: |
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(A) is eligible to designate this state as its |
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home state; |
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(B) is trustworthy; |
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(C) has designated a licensed adjuster |
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responsible for the business entity's compliance with the insurance |
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laws of this state; |
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(D) has not committed an act that is a ground for |
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probation, suspension, revocation, or refusal of an adjuster's |
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license under Section 4101.201; and |
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(E) has paid the fees prescribed under Section |
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4101.057. |
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(d) An individual who is a resident of Canada may not be |
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licensed under this chapter or designate this state as the |
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individual's home state unless the individual has successfully |
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passed the adjuster examination and complied with the other |
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applicable portions of this section, except that the individual is |
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not required to comply with Subsection (a)(2)(B) or (C). |
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SECTION 4. Section 4101.053, Insurance Code, as amended by |
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this Act, applies only to an application for a license filed on or |
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after the effective date of this Act. A license application filed |
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before the effective date of this Act is governed by the law |
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applicable to the application immediately before the effective date |
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of this Act, and the former law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2011. |