Relating to the regulation of insurance adjusters.
Impact
The implementation of SB718 will modify the existing Insurance Code in Texas, particularly Section 4101.002. By exempting certain roles from the regulations governing licensed adjusters, the bill potentially reduces the number of professionals required to obtain an adjuster’s license. This change seeks to alleviate the regulatory burden on professionals associated with legal, technical, and operational aspects of insurance but may also raise questions about accountability and the oversight of claims handling. The effective date of the changes is set for September 1, 2017, indicating a relatively swift transition to these new regulatory standards.
Summary
SB718 is a legislative bill aimed at the regulation of insurance adjusters within the state of Texas. The bill seeks to specify who qualifies as a licensed insurance adjuster under Texas laws, providing a clearer framework for regulation. Specifically, it delineates various categories of individuals and their exempt status regarding the adjustment and investigation of insurance claims—these exemptions include certain legal professionals, salaried employees of insurers, and others who perform technical assistance. This bill is intended to streamline the insurance claims process and clarify the scope of adjuster activities, ensuring that those who operate in this space are properly licensed and regulated.
Sentiment
The sentiment surrounding SB718 appears to be largely supportive among legislators focused on enhancing efficiencies in the insurance sector. The unanimous voting record—144 yeas and 0 nays in its last recorded vote—suggests broad consensus on the need for clearer regulatory frameworks that cater to the modern demands of insurance adjusting and claims handling. This sentiment is indicative of a legislative environment that values reduced bureaucracy while aiming to maintain consumer protection mechanisms, though a thorough analysis of compliance and operational implications may still be warranted.
Contention
While SB718 largely received support, there may be points of contention regarding the potential implications of exempting specific roles from licensure requirements. Concerns could arise over the quality of claims handling if non-licensed individuals become more prevalent in roles traditionally filled by licensed adjusters, raising fears about inadequate claim settlements or mismanagement of insurance policies. Moreover, stakeholders may critique the balance between reducing regulatory burdens and ensuring sufficient consumer safeguards, suggesting that careful monitoring will be necessary to assess the bill’s long-term impacts on policyholders.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the authorization, licensing, and regulation of casino gaming and sports wagering in this state, to the creation, powers, and duties of the Texas Gaming Commission, to the support of the horse racing industry and reform of horse racing and greyhound racing, and to other provisions related to gambling; imposing and authorizing administrative and civil penalties; imposing taxes; imposing and authorizing fees; requiring occupational licenses; creating criminal offenses.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.
Relating to the regulation of the collection, use, processing, and treatment of consumers' personal data by certain business entities; imposing a civil penalty.