By: Eiland (Senate Sponsor - Carona) H.B. No. 2699
(In the Senate - Received from the House May 6, 2011;
May 9, 2011, read first time and referred to Committee on Business
and Commerce; May 11, 2011, reported favorably by the following
vote: Yeas 9, Nays 0; May 11, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the requirements for an insurance adjuster license.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4101.001(a), Insurance Code, is amended
to read as follows:
(a) In this chapter:
(1) "Adjuster" [, "adjuster"] means a person [an
individual] who:
(A) [(1)] investigates or adjusts losses on
behalf of an insurer as an independent contractor or as an employee
of:
(i) [(A)] an adjustment bureau;
(ii) [(B)] an association;
(iii) [(C)] a general property and casualty
agent or personal lines property and casualty agent;
(iv) [(D)] an independent contractor;
(v) [(E)] an insurer; or
(vi) [(F)] a managing general agent;
(B) [(2)] supervises the handling of claims; or
(C) [(3)] investigates, adjusts, supervises the
handling of, or settles workers' compensation claims, including
claims arising from services provided through a certified workers'
compensation health care network as authorized under Chapter 1305,
on behalf of an administrator, as defined by Chapter 4151, or on
behalf of an insurance carrier, as defined by Section 401.011,
Labor Code.
(2) "Automated claims adjudication system" means a
computer program designed for the collection, data entry,
calculation, and final resolution of portable consumer electronic
insurance claims that a licensed independent adjuster, a licensed
agent, an officer of a business entity licensed under this chapter,
or a supervised individual uses as described by this chapter.
(3) "Business entity" means a corporation,
association, partnership, limited liability company, limited
liability partnership, or other legal entity.
(4) "Home state," with respect to an adjuster, means:
(A) the state in which the adjuster maintains the
adjuster's principal place of residence or business and is licensed
to act as a resident adjuster; or
(B) if the state of the adjuster's principal
place of residence or business does not license adjusters for the
line of authority sought, a state in which the adjuster is licensed
and in good standing and that is designated by the adjuster as the
adjuster's home state.
(5) "Person" means an individual or business entity.
SECTION 2. Section 4101.002, Insurance Code, is amended by
amending Subsection (a) and adding Subsection (d) to read as
follows:
(a) This chapter does not apply to:
(1) an attorney who:
(A) adjusts insurance losses periodically and
incidentally to the practice of law; and
(B) does not represent that the attorney is an
adjuster;
(2) a salaried employee of an insurer who is not
regularly engaged in the adjustment, investigation, or supervision
of insurance claims;
(3) a person employed only to furnish technical
assistance to a licensed adjuster, including:
(A) an attorney;
(B) an engineer;
(C) an estimator;
(D) a handwriting expert;
(E) a photographer; and
(F) a private detective;
(4) an agent or general agent of an authorized insurer
who processes an undisputed or uncontested loss for the insurer
under a policy issued by the agent or general agent;
(5) a person who performs clerical duties and does not
negotiate with parties to disputed or contested claims;
(6) a person who handles claims arising under life,
accident, and health insurance policies;
(7) a person:
(A) who is employed principally as:
(i) a right-of-way agent; or
(ii) a right-of-way and claims agent;
(B) whose primary responsibility is the
acquisition of easements, leases, permits, or other real property
rights; and
(C) who handles only claims arising out of
operations under those easements, leases, permits, or other
contracts or contractual obligations;
(8) an individual who is employed to investigate
suspected fraudulent insurance claims but who does not adjust
losses or determine claims payments; [or]
(9) a public insurance adjuster licensed under Chapter
4102; or
(10) an individual who:
(A) collects claim information from, or
furnishes claim information to, an insured or claimant and enters
data into an automated claims adjudication system; and
(B) is employed by a licensed independent
adjuster or its affiliate under circumstances in which no more than
25 individuals performing duties described by Paragraph (A) are
supervised by a single licensed independent adjuster or a single
licensed agent.
(d) A licensed agent acting as a supervisor under Subsection
(a)(10) is not required to be licensed as an adjuster.
SECTION 3. Section 4101.053, Insurance Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(a) To qualify for a license under this chapter, an
individual [applicant] must:
(1) comply with this chapter;
(2) present evidence satisfactory to the department
that the applicant:
(A) is at least 18 years of age;
(B) resides in this state or a state or country
that permits a resident of this state to act as an adjuster in that
state or country;
(C) has complied with all federal laws relating
to employment or the transaction of business in the United States,
if the applicant does not reside in the United States;
(D) is trustworthy; and
(E) has had experience, special education, or
training of sufficient duration and extent regarding the handling
of loss claims under insurance contracts to make the applicant
competent to fulfill the responsibilities of an adjuster; and
(3) pass an examination conducted under this
subchapter or present evidence that the applicant has been exempted
under Section 4101.056.
(c) To qualify for a license under this chapter, a business
entity must:
(1) comply with this chapter; and
(2) present evidence satisfactory to the department
that the applicant:
(A) is eligible to designate this state as its
home state;
(B) is trustworthy;
(C) has designated a licensed adjuster
responsible for the business entity's compliance with the insurance
laws of this state;
(D) has not committed an act that is a ground for
probation, suspension, revocation, or refusal of an adjuster's
license under Section 4101.201; and
(E) has paid the fees prescribed under Section
4101.057.
(d) An individual who is a resident of Canada may not be
licensed under this chapter or designate this state as the
individual's home state unless the individual has successfully
passed the adjuster examination and complied with the other
applicable portions of this section, except that the individual is
not required to comply with Subsection (a)(2)(B) or (C).
SECTION 4. Section 4101.053, Insurance Code, as amended by
this Act, applies only to an application for a license filed on or
after the effective date of this Act. A license application filed
before the effective date of this Act is governed by the law
applicable to the application immediately before the effective date
of this Act, and the former law is continued in effect for that
purpose.
SECTION 5. This Act takes effect September 1, 2011.
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