Texas House Bill HB3843

Texas 2015 - 84th Regular

Caption

Relating to creating the criminal offense of prohibited conduct by public insurance adjusters.

Impact

The introduction of this bill aims to enhance the integrity of public insurance adjusting practice by imposing strict regulations on adjusters' conduct when interacting with legal professionals involved in insurance claims. Supporters believe that the bill will mitigate the potential for abuses and conflicts of interest, fostering a more transparent and ethical environment within the insurance adjustment industry. This change is poised to protect consumers from unscrupulous practices which might arise in the insurance claims process, ensuring that adjusters act in their clients' best interests without undue financial motivations.

Summary

House Bill 3843 relates to the establishment of a criminal offense for specific prohibited conduct by public insurance adjusters. The legislation seeks to amend Chapter 35 of the Penal Code, introducing Section 35.05, which delineates particular actions that would constitute illegal behavior for individuals acting as public insurance adjusters. This includes soliciting employment for attorneys without rendering customary adjusting services, receiving fees from attorneys for referrals, and having financial interests in entities related to insurance claims. A Class A misdemeanor is designated for these offenses, emphasizing the seriousness of the regulation.

Contention

There may be points of contention surrounding the bill, particularly regarding its implications for public insurance adjusters' operational practices. Advocates for the bill highlight public accountability and consumer protection, whereas opponents may argue that the regulations might overreach or impose undue barriers on adjusters’ ability to conduct business. The consequences for public insurance adjusters could lead to increased scrutiny over their methods and a potential chilling effect on the referral of clients to legal counsel, which some believe is a necessary aspect of navigating complex insurance claims.