| 1 | 1 | | 82R21208 PMO-F |
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| 2 | 2 | | By: Torres H.B. No. 3154 |
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| 3 | 3 | | Substitute the following for H.B. No. 3154: |
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| 4 | 4 | | By: Torres C.S.H.B. No. 3154 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to commissions paid to public insurance adjusters. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 4102.104, Insurance Code, is amended by |
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| 12 | 12 | | amending Subsection (a) and adding Subsections (f) and (g) to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (a) Except as provided by Subsection (b), a license holder |
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| 15 | 15 | | may receive a commission for service provided under this chapter |
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| 16 | 16 | | consisting of an hourly fee, a flat rate, a percentage of the total |
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| 17 | 17 | | amount paid by an insurer to resolve a claim, or another method of |
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| 18 | 18 | | compensation. Subject to Subsection (g), the [The] total |
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| 19 | 19 | | commission received, excluding sales tax, may not exceed 10 percent |
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| 20 | 20 | | of the amount of the insurance settlement on the claim. |
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| 21 | 21 | | (f) A license holder may be paid a commission that is based, |
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| 22 | 22 | | in part, on an amount paid by, or a negotiable instrument issued by, |
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| 23 | 23 | | the insurer to an insured before the effective date of the public |
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| 24 | 24 | | insurance adjuster's contract with the insured, if the insurer |
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| 25 | 25 | | obtains the insured's written consent to the payment. |
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| 26 | 26 | | (g) A commission paid under Subsection (f) may not exceed |
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| 27 | 27 | | the lesser of: |
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| 28 | 28 | | (1) 25 percent of the difference between the amount |
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| 29 | 29 | | the public insurance adjuster obtained to resolve a claim on behalf |
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| 30 | 30 | | of the insured and the amount the insurer initially offered to pay |
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| 31 | 31 | | the insured to resolve the claim; or |
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| 32 | 32 | | (2) 10 percent of the total amount paid by the insurer |
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| 33 | 33 | | to resolve a claim under Subsection (a). |
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| 34 | 34 | | SECTION 2. The changes in law made to Section 4102.104, |
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| 35 | 35 | | Insurance Code, by this Act apply only to a commission paid on or |
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| 36 | 36 | | after the effective date of this Act. A commission paid before the |
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| 37 | 37 | | effective date of this Act is governed by the law in effect |
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| 38 | 38 | | immediately before the effective date of this Act, and that law is |
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| 39 | 39 | | continued in effect for that purpose. |
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| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2011. |
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