83R622 KCR-F
By: Smithee H.B. No. 1404
A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of insurance adjusters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4101.001(a)(1), Insurance Code, is
amended to read as follows:
(1) "Adjuster" means a person who:
(A) investigates or adjusts losses on behalf of
an insurer as an independent contractor [or as an employee] of:
(i) an adjustment bureau;
(ii) an association;
(iii) a general property and casualty agent
or personal lines property and casualty agent;
(iv) an independent contractor;
(v) an insurer; or
(vi) a managing general agent;
(B) supervises the handling of claims; or
(C) 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.
SECTION 2. Section 4101.002(a), Insurance Code, is amended
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;
(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; or
(11) an individual who is employed by an insurer to
investigate or adjust losses on behalf of the insurer, including
entering into subrogation agreements or arrangements with other
parties on behalf of the insurer.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2013.