Bill Text: TX SB1060 | 2015-2016 | 84th Legislature | Enrolled

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Bill Title: Relating to the regulation of public insurance adjusters.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2015-06-19 - Effective on 9/1/15 [SB1060 Detail]

Download: Texas-2015-SB1060-Enrolled.html

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S.B. No. 1060

AN ACT
relating to the regulation of public insurance adjusters.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 4102.051(a), Insurance Code, is amended
to read as follows:
(a) A person may not act as a public insurance adjuster in
this state or hold himself or herself out to be a public insurance
adjuster in this state unless the person holds a license [or
certificate] issued by the commissioner under Section 4102.053
or[,] 4102.054[, or 4102.069].
SECTION 2. Sections 4102.066(a) and (b), Insurance Code,
are amended to read as follows:
(a) The commissioner shall collect in advance the following
nonrefundable fees:
(1) for a public insurance adjuster license, an
application fee in an amount to be determined by rule by the
commissioner;
(2) for a nonresident public insurance adjuster
license, an application fee in an amount to be determined by rule by
the commissioner; and
(3) for each public insurance adjuster examination, a
fee in an amount to be determined by rule by the commissioner[; and
[(4) for a public insurance adjuster trainee
certificate under Section 4102.069, a registration fee in an amount
to be determined by rule by the commissioner].
(b) The amount of the fee for the renewal of a license [or a
certificate] issued under this chapter shall be determined by rule
by the commissioner.
SECTION 3. Section 4102.103, Insurance Code, is amended by
adding Subsection (d) to read as follows:
(d) A license holder may not enter into a contract with an
insured and collect a commission as provided by Section 4102.104
without the intent to actually perform the services customarily
provided by a licensed public insurance adjuster for the insured.
SECTION 4. Section 4102.104(d), Insurance Code, is amended
to read as follows:
(d) A public insurance adjuster may not accept any payment
that violates the provisions of this section [Subsection (c)].
SECTION 5. Section 4102.158, Insurance Code, is amended by
amending Subsection (a) and adding Subsections (d), (e), and (f) to
read as follows:
(a) A license holder may not:
(1) participate directly or indirectly in the
reconstruction, repair, or restoration of damaged property that is
the subject of a claim adjusted by the license holder; or
(2) engage in any other activities that may reasonably
be construed as presenting a conflict of interest, including
soliciting or accepting any remuneration from, [or] having a
financial interest in, or deriving any direct or indirect financial
benefit from, any salvage firm, repair firm, construction firm, or
other firm that obtains business in connection with any claim the
license holder has a contract or agreement to adjust.
(d) A license holder may not directly or indirectly solicit,
as described by Chapter 38, Penal Code, employment for an attorney
or enter into a contract with an insured for the primary purpose of
referring an insured to an attorney and without the intent to
actually perform the services customarily provided by a licensed
public insurance adjuster. This section may not be construed to
prohibit a license holder from recommending a particular attorney
to an insured.
(e) A license holder may not act on behalf of an attorney in
having an insured sign an attorney representation agreement.
(f) A license holder must become familiar with and at all
times act in conformance with the criminal barratry statute set
forth in Section 38.12, Penal Code.
SECTION 6. Section 4102.160, Insurance Code, is amended to
read as follows:
Sec. 4102.160. CERTAIN PAYMENTS PROHIBITED. A license
holder may not:
(1) advance money to any potential client or insured;
or
(2) pay, allow, or give, or offer to pay, allow, or
give, directly or indirectly, to a person who is not a licensed
public insurance adjuster a fee, commission, or other valuable
consideration for the referral of an insured to the public
insurance adjuster for purposes of [based on] the insured entering
into a contract with that public insurance adjuster or for any other
purpose[; or
[(3) otherwise offer to pay a fee, commission, or
other valuable consideration exceeding $100 to a person not
licensed as a public insurance adjuster for referring an insured to
the license holder].
SECTION 7. Subchapter D, Chapter 4102, Insurance Code, is
amended by adding Section 4102.164 to read as follows:
Sec. 4102.164. ACCEPTANCE OF REFERRAL PAYMENTS PROHIBITED.
(a) A licensed public insurance adjuster may not accept a fee,
commission, or other valuable consideration of any nature,
regardless of form or amount, in exchange for the referral by a
licensed public insurance adjuster of an insured to any third-party
individual or firm, including an attorney, appraiser, umpire,
construction company, contractor, or salvage company.
(b) The commissioner shall adopt rules necessary to
implement and enforce this section.
SECTION 8. Section 4102.069, Insurance Code, is repealed.
SECTION 9. The repeal by this Act of Section 4102.069,
Insurance Code, does not affect the authority of a person to act
under a temporary certificate issued by the Texas Department of
Insurance under that section before the effective date of this Act.
SECTION 10. Sections 4102.103(d) and 4102.158(d),
Insurance Code, as added by this Act, apply only to a contract
entered into or solicitation made on or after the effective date of
this Act.
SECTION 11. (a) Except as provided by this section,
Section 4102.104, Insurance Code, as amended by this Act, applies
only to payment accepted on or after the effective date of this Act.
(b) Payment for a service performed before the effective
date of this Act or performed after the effective date of this Act
under a contract entered into before the effective date of this Act
is governed by the law as it existed immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 12. Section 4102.160, Insurance Code, as amended by
this Act, and Section 4102.164, Insurance Code, as added by this
Act, apply only to a referral made on or after the effective date of
this Act. A referral made before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
purpose.
SECTION 13. The changes in law made by this Act apply only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
governed by the law in effect when the offense was committed, and
the former law is continued in effect for that purpose. For
purposes of this section, an offense was committed before the
effective date of this Act if any element of the offense occurred
before that date.
SECTION 14. This Act takes effect September 1, 2015.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1060 passed the Senate on
May 14, 2015, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1060 passed the House on
May 27, 2015, by the following vote: Yeas 144, Nays 0, two
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor