88R18799 CJD-D
By: Perez, Cain, Oliverson, H.B. No. 1706
A. Johnson of Harris
Substitute the following for H.B. No. 1706:
By: Oliverson C.S.H.B. No. 1706
A BILL TO BE ENTITLED
AN ACT
relating to the right of an insured to enter into a contract with a
public insurance adjuster.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 4102, Insurance Code, is
amended by adding Section 4102.007 to read as follows:
Sec. 4102.007. RIGHT TO CONTRACT WITH LICENSE HOLDER. (a)
Notwithstanding Sections 4001.002 and 4102.002, this section
applies to a commercial or residential property insurance policy
issued by an insurer, including:
(1) a capital stock insurance company;
(2) a mutual insurance company;
(3) a county mutual insurance company;
(4) a Lloyd's plan;
(5) a reciprocal or interinsurance exchange;
(6) a farm mutual insurance company; and
(7) an eligible surplus lines insurer if this state is
the insured's home state as defined by Section 981.002.
(b) An insured has the right to enter into a contract with a
license holder to help the insured meet the insured's obligations
under the insured's insurance policy. An insurance policy issued
in this state may not impede or prohibit this right.
(c) An insured is not required to enter into a contract
described by Subsection (b).
SECTION 2. Section 4102.007, Insurance Code, as added by
this Act, applies only to an insurance policy delivered, issued for
delivery, or renewed on or after January 1, 2024.
SECTION 3. This Act takes effect September 1, 2023.