BILL ANALYSIS

H.B. 2103

By: Capriglione

Insurance

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Currently, many contractors are not prohibited from acting as public insurance adjusters on property for which the contractor is providing services, resulting in a situation in which the contractor could fraudulently adjust the claim and pocket the difference between the cost of service and the claim amount. Roofing contractors are specifically prohibited from acting as public insurance adjusters for property on which they are providing services. Making this prohibition more broadly applicable could mitigate fraud opportunities. H.B. 2103 seeks to address this issue by prohibiting any contractor from acting as public insurance adjuster in certain circumstances.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 2103 amends the Insurance Code to expand the prohibition against a roofing contractor acting as a public adjuster or advertising to adjust claims for any property for which the contractor is providing or may provide services, regardless of whether the contractor holds a public insurance adjuster license, to apply to all contractors.         

EFFECTIVE DATE

September 1, 2019.