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A BILL TO BE ENTITLED
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AN ACT
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relating to commissions paid to public insurance adjusters. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 4102.104, Insurance Code, is amended by |
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amending Subsection (a) and adding Subsections (f) and (g) to read |
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as follows: |
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(a) Except as provided by Subsection (b), a license holder |
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may receive a commission for service provided under this chapter |
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consisting of an hourly fee, a flat rate, a percentage of the total |
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amount paid by an insurer to resolve a claim, or another method of |
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compensation. Subject to Subsection (g), the [The] total |
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commission received, excluding sales tax, may not exceed 10 percent |
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of the amount of the insurance settlement on the claim. |
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(f) A license holder may be paid a commission that is based, |
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in part, on an amount paid by, or a negotiable instrument issued by, |
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the insurer to an insured before the effective date of the public |
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insurance adjuster's contract with the insured, if the insurer |
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obtains the insured's written consent to the payment. |
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(g) A commission paid under Subsection (f) may not exceed |
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the lesser of: |
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(1) 25 percent of the difference between the amount |
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the public insurance adjuster obtained to resolve a claim on behalf |
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of the insured and the amount the insurer initially offered to pay |
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the insured to resolve the claim; or |
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(2) 10 percent of the total amount paid by the insurer |
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to resolve a claim under Subsection (a). |
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SECTION 2. The changes in law made to Section 4102.104, |
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Insurance Code, by this Act apply only to a commission paid on or |
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after the effective date of this Act. A commission paid before the |
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effective date of this Act is governed by the law in effect |
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immediately before the effective date of this Act, and that law is |
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continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |