BILL ANALYSIS |
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C.S.H.B. 1183 |
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By: Guillen |
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Insurance |
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Committee Report (Substituted) |
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BACKGROUND AND PURPOSE
Concerned parties assert that some insurance adjusters who also are roofing contractors engage in insurance fraud by increasing the rate for roofing work and pocketing the price difference. In an effort to prevent this practice and to protect consumers, C.S.H.B. 1183 establishes certain prohibited conduct for insurance adjusters who are involved with a roofing-related business.
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RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the commissioner of insurance in SECTIONS 1 and 2 of this bill.
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ANALYSIS
C.S.H.B. 1183 amends the Insurance Code to prohibit a licensed insurance adjuster from adjusting a loss related to roofing damage on an insurer's behalf if the adjuster is a roofing contractor or otherwise provides roofing services or roofing products for compensation or is a controlling person in a roofing-related business. The bill prohibits a roofing contractor from acting as an adjuster or public adjuster or advertising to adjust claims for any property for which the contractor is providing or may provide roofing services, regardless of whether the contractor is a licensed insurance adjuster or licensed public insurance adjuster. The bill requires the commissioner of insurance to adopt rules necessary to implement and enforce the bill's provisions.
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EFFECTIVE DATE
September 1, 2013.
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COMPARISON OF ORIGINAL AND SUBSTITUTE
While C.S.H.B. 1183 may differ from the original in minor or nonsubstantive ways, the following comparison is organized and highlighted in a manner that indicates the substantial differences between the introduced and committee substitute versions of the bill.
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