82R9454 PMO-F
By: Torres H.B. No. 3154
A BILL TO BE ENTITLED
AN ACT
relating to public insurance adjusters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4102.051(a), Insurance Code, is amended
to read as follows:
(a) A person may not act as a public insurance adjuster in
this state or hold himself or herself out to be a public insurance
adjuster in this state unless the person holds a license or
certificate issued by the commissioner under Section 4102.053,
4102.054, [or] 4102.069, or 4102.251.
SECTION 2. Section 4102.058, Insurance Code, is amended to
read as follows:
Sec. 4102.058. EXEMPTION FROM EXAMINATION REQUIREMENT. The
examination requirement imposed by Section 4102.057 does not apply
to:
(1) an applicant who is licensed as a resident public
insurance adjuster in the applicant's state of residence, if the
state requires the passing of a written examination in order to
obtain the license and a reciprocal agreement with the appropriate
official of that state has been entered into by the department; [or]
(2) an applicant who is licensed as a nonresident
public insurance adjuster in a state other than the applicant's
state of residence, if the state of licensure requires the passing
of a written examination in order to obtain the license and a
reciprocal agreement with the appropriate official of the state of
licensure has been entered into by the department; or
(3) a person who is issued an emergency license under
Section 4102.251.
SECTION 3. The heading to Section 4102.104, Insurance Code,
is amended to read as follows:
Sec. 4102.104. COMPENSATION [COMMISSIONS].
SECTION 4. Sections 4102.104(a), (b), and (c), Insurance
Code, are amended to read as follows:
(a) Except as provided by Subsection (b), a license holder
may receive compensation [a commission] for service provided under
this chapter consisting of an hourly fee, a flat rate, a percentage
of the total amount paid by an insurer to resolve a claim after the
date on which an insured is under contract with the license holder,
or another method of compensation. The total compensation
[commission] received, excluding sales tax, may not exceed 10
percent of the amount of the insurance settlement on the claim. In
this subsection, an insurance settlement is the amount paid by the
insurer while the insured is under contract with the license holder
for public insurance adjuster services. Compensation under a
public insurance adjuster contract may not include an amount paid
by or negotiable instruments issued by the insurer before the date
of the public insurance adjuster contract.
(b) A license holder may not receive compensation [a
commission] consisting of a percentage of the total amount paid by
an insurer to resolve a claim on a claim on which the insurer, not
later than 72 hours after the date on which the loss is reported to
the insurer, either pays or commits in writing to pay to the insured
the policy limit of the insurance policy in accordance with Section
862.053. The license holder is entitled to reasonable
compensation from the insured for services provided by the license
holder on behalf of the insured, based on the time spent on a claim
that is subject to this subsection and expenses incurred by the
license holder, until the claim is paid or the insured receives a
written commitment to pay from the insurer.
(c) Except for the payment of compensation [a commission] by
the insured, all persons paying any proceeds of a policy of
insurance or making any payment affecting an insured's rights under
a policy of insurance must:
(1) include the insured as a payee on the payment draft
or check; and
(2) require the written signature and endorsement of
the insured on the payment draft or check.
SECTION 5. Chapter 4102, Insurance Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. EMERGENCY LICENSE
Sec. 4102.251. EMERGENCY LICENSE. (a) If a catastrophe or
an emergency arises out of a disaster, act of God, riot, civil
commotion, conflagration, or other similar occurrence, the
commissioner may, on application certified by a person who holds a
license under this chapter, issue an emergency license to a
nonresident public insurance adjuster to act as a public insurance
adjuster in a catastrophe area designated by the commissioner under
Subsection (b).
(b) After at least 10 days' notice and a hearing, the
commissioner may designate an area as a catastrophe area for
purposes of this subchapter if the commissioner finds an emergency
need for public insurance adjusters due to a catastrophe or an
emergency.
(c) The license holder who certifies an application under
Subsection (a) is liable for the loss or claims practices of the
applicant.
(d) An emergency license is effective for an initial term of
not more than 90 days as determined by the commissioner. The
commissioner may extend the term of the emergency license for one
period of not more than 90 days after the expiration of the initial
term.
(e) The fee for an emergency license is $40. A person issued
an emergency license shall remit the fee to the department with the
certified application described by Subsection (a).
Sec. 4102.252. REQUIREMENT TO REGISTER IN THE DESIGNATED
AREA. (a) A local governmental entity in an area designated as a
catastrophe area under Section 4102.251(b) may require a person
holding an emergency license under Section 4102.251 to register
with the local governmental entity before acting as a public
insurance adjuster in the local governmental entity's boundaries.
(b) A local governmental entity that requires registration
under this section may require that the registrant:
(1) provide the registrant's name, address, and
telephone number;
(2) display or provide a copy of a photo
identification of the registrant;
(3) provide the emergency license number of the
registrant issued by the department; and
(4) provide a copy of proof of financial
responsibility required by Section 4102.105.
Sec. 4102.253. REVOCATION OR SUSPENSION OF EMERGENCY
LICENSE. (a) The commissioner may, after notice and hearing,
revoke an emergency license as provided by Section 4102.201.
(b) Notwithstanding Subsection (a), the commissioner may
suspend an emergency license without notice or a hearing if the
commissioner finds that:
(1) the license holder has failed to maintain
financial responsibility as required by Section 4102.105; or
(2) a final judgment against the license holder for
conduct which arose directly or indirectly from the license
holder's public insurance adjuster activity is not paid in full
before the 30th day after the date the judgment becomes final and
unappealable.
Sec. 4102.254. NOTIFICATION BY EMERGENCY LICENSE HOLDER.
An emergency license holder is required to notify the department of
a change in employment not later than 15 days after the date of the
change in employment.
Sec. 4102.255. APPLICABILITY OF CHAPTER. An emergency
license holder under this subchapter shall comply with all
requirements of this chapter except Sections 4102.053, 4102.054,
4102.057, 4102.062, 4102.063, 4102.064, 4102.065, 4102.066, and
4102.109.
Sec. 4102.256. RULES. The commissioner may adopt rules as
necessary to implement this subchapter.
SECTION 6. This Act takes effect September 1, 2011.