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A BILL TO BE ENTITLED
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AN ACT
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relating 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 4102.051(a), Insurance Code, is amended |
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to read as follows: |
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(a) A person may not act as a public insurance adjuster in |
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this state or hold himself or herself out to be a public insurance |
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adjuster in this state unless the person holds a license or |
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certificate issued by the commissioner under Section 4102.053, |
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4102.054, [or] 4102.069, or 4102.251. |
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SECTION 2. Section 4102.058, Insurance Code, is amended to |
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read as follows: |
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Sec. 4102.058. EXEMPTION FROM EXAMINATION REQUIREMENT. The |
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examination requirement imposed by Section 4102.057 does not apply |
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to: |
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(1) an applicant who is licensed as a resident public |
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insurance adjuster in the applicant's state of residence, if the |
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state requires the passing of a written examination in order to |
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obtain the license and a reciprocal agreement with the appropriate |
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official of that state has been entered into by the department; [or] |
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(2) an applicant who is licensed as a nonresident |
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public insurance adjuster in a state other than the applicant's |
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state of residence, if the state of licensure requires the passing |
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of a written examination in order to obtain the license and a |
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reciprocal agreement with the appropriate official of the state of |
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licensure has been entered into by the department; or |
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(3) a person who is issued an emergency license under |
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Section 4102.251. |
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SECTION 3. The heading to Section 4102.104, Insurance Code, |
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is amended to read as follows: |
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Sec. 4102.104. COMPENSATION [COMMISSIONS]. |
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SECTION 4. Sections 4102.104(a), (b), and (c), Insurance |
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Code, are amended to read as follows: |
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(a) Except as provided by Subsection (b), a license holder |
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may receive compensation [a commission] for service provided under |
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this chapter consisting of an hourly fee, a flat rate, a percentage |
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of the total amount paid by an insurer to resolve a claim after the |
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date on which an insured is under contract with the license holder, |
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or another method of compensation. The total compensation |
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[commission] received, excluding sales tax, may not exceed 10 |
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percent of the amount of the insurance settlement on the claim. In |
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this subsection, an insurance settlement is the amount paid by the |
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insurer while the insured is under contract with the license holder |
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for public insurance adjuster services. Compensation under a |
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public insurance adjuster contract may not include an amount paid |
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by or negotiable instruments issued by the insurer before the date |
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of the public insurance adjuster contract. |
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(b) A license holder may not receive compensation [a
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commission] consisting of a percentage of the total amount paid by |
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an insurer to resolve a claim on a claim on which the insurer, not |
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later than 72 hours after the date on which the loss is reported to |
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the insurer, either pays or commits in writing to pay to the insured |
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the policy limit of the insurance policy in accordance with Section |
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862.053. The license holder is entitled to reasonable |
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compensation from the insured for services provided by the license |
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holder on behalf of the insured, based on the time spent on a claim |
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that is subject to this subsection and expenses incurred by the |
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license holder, until the claim is paid or the insured receives a |
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written commitment to pay from the insurer. |
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(c) Except for the payment of compensation [a commission] by |
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the insured, all persons paying any proceeds of a policy of |
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insurance or making any payment affecting an insured's rights under |
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a policy of insurance must: |
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(1) include the insured as a payee on the payment draft |
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or check; and |
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(2) require the written signature and endorsement of |
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the insured on the payment draft or check. |
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SECTION 5. Chapter 4102, Insurance Code, is amended by |
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adding Subchapter F to read as follows: |
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SUBCHAPTER F. EMERGENCY LICENSE |
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Sec. 4102.251. EMERGENCY LICENSE. (a) If a catastrophe or |
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an emergency arises out of a disaster, act of God, riot, civil |
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commotion, conflagration, or other similar occurrence, the |
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commissioner may, on application certified by a person who holds a |
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license under this chapter, issue an emergency license to a |
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nonresident public insurance adjuster to act as a public insurance |
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adjuster in a catastrophe area designated by the commissioner under |
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Subsection (b). |
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(b) After at least 10 days' notice and a hearing, the |
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commissioner may designate an area as a catastrophe area for |
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purposes of this subchapter if the commissioner finds an emergency |
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need for public insurance adjusters due to a catastrophe or an |
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emergency. |
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(c) The license holder who certifies an application under |
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Subsection (a) is liable for the loss or claims practices of the |
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applicant. |
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(d) An emergency license is effective for an initial term of |
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not more than 90 days as determined by the commissioner. The |
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commissioner may extend the term of the emergency license for one |
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period of not more than 90 days after the expiration of the initial |
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term. |
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(e) The fee for an emergency license is $40. A person issued |
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an emergency license shall remit the fee to the department with the |
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certified application described by Subsection (a). |
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Sec. 4102.252. REQUIREMENT TO REGISTER IN THE DESIGNATED |
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AREA. (a) A local governmental entity in an area designated as a |
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catastrophe area under Section 4102.251(b) may require a person |
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holding an emergency license under Section 4102.251 to register |
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with the local governmental entity before acting as a public |
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insurance adjuster in the local governmental entity's boundaries. |
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(b) A local governmental entity that requires registration |
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under this section may require that the registrant: |
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(1) provide the registrant's name, address, and |
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telephone number; |
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(2) display or provide a copy of a photo |
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identification of the registrant; |
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(3) provide the emergency license number of the |
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registrant issued by the department; and |
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(4) provide a copy of proof of financial |
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responsibility required by Section 4102.105. |
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Sec. 4102.253. REVOCATION OR SUSPENSION OF EMERGENCY |
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LICENSE. (a) The commissioner may, after notice and hearing, |
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revoke an emergency license as provided by Section 4102.201. |
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(b) Notwithstanding Subsection (a), the commissioner may |
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suspend an emergency license without notice or a hearing if the |
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commissioner finds that: |
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(1) the license holder has failed to maintain |
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financial responsibility as required by Section 4102.105; or |
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(2) a final judgment against the license holder for |
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conduct which arose directly or indirectly from the license |
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holder's public insurance adjuster activity is not paid in full |
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before the 30th day after the date the judgment becomes final and |
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unappealable. |
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Sec. 4102.254. NOTIFICATION BY EMERGENCY LICENSE HOLDER. |
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An emergency license holder is required to notify the department of |
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a change in employment not later than 15 days after the date of the |
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change in employment. |
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Sec. 4102.255. APPLICABILITY OF CHAPTER. An emergency |
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license holder under this subchapter shall comply with all |
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requirements of this chapter except Sections 4102.053, 4102.054, |
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4102.057, 4102.062, 4102.063, 4102.064, 4102.065, 4102.066, and |
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4102.109. |
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Sec. 4102.256. RULES. The commissioner may adopt rules as |
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necessary to implement this subchapter. |
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SECTION 6. This Act takes effect September 1, 2011. |