By: Perez, et al. (Senate Sponsor - Schwertner) H.B. No. 1706

(In the Senate - Received from the House April 17, 2023; April 18, 2023, read first time and referred to Committee on Business & Commerce; May 5, 2023, reported adversely, with favorable Committee Substitute by the following vote: Yeas 10, Nays 0; May 5, 2023, sent to printer.) Click here to see the committee vote

COMMITTEE SUBSTITUTE FOR H.B. No. 1706 By: Schwertner

A BILL TO BE ENTITLED

AN ACT

relating to the right of an insured to enter into a contract with a public insurance adjuster.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 4102, Insurance Code, is amended by adding Section 4102.007 to read as follows:

Sec. 4102.007. RIGHT TO CONTRACT WITH LICENSE HOLDER. (a) Notwithstanding Sections 4001.002 and 4102.002, this section applies to a commercial or residential property insurance policy issued by an insurer, including:

(1) a capital stock insurance company;

(2) a mutual insurance company;

(3) a county mutual insurance company;

(4) a Lloyd's plan;

(5) a reciprocal or interinsurance exchange;

(6) a farm mutual insurance company; and

(7) an eligible surplus lines insurer if this state is the insured's home state as defined by Section 981.002.

(b) An insurance policy, including any endorsement, to which this section applies may not include a provision that prohibits an insured from contracting with a public insurance adjuster for services provided under this chapter.

(c) An insured is not required to enter into a contract described by Subsection (b).

SECTION 2. Section 4102.007, Insurance Code, as added by this Act, applies only to an insurance policy delivered, issued for delivery, or renewed on or after January 1, 2024.

SECTION 3. This Act takes effect September 1, 2023.

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