H.B. No. 2699
 
 
 
 
AN ACT
  relating to the requirements for an insurance adjuster license.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 4101.001(a), Insurance Code, is amended
  to read as follows:
         (a)  In this chapter:
               (1)  "Adjuster" [, "adjuster"] means a person [an
  individual] who:
                     (A) [(1)] investigates or adjusts losses on
  behalf of an insurer as an independent contractor or as an employee
  of:
                           (i) [(A)]  an adjustment bureau;
                           (ii) [(B)]  an association;
                           (iii) [(C)]  a general property and casualty
  agent or personal lines property and casualty agent;
                           (iv) [(D)]  an independent contractor;
                           (v) [(E)]  an insurer; or
                           (vi) [(F)]  a managing general agent;
                     (B) [(2)]  supervises the handling of claims; or
                     (C) [(3)]  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.
               (2)  "Automated claims adjudication system" means a
  computer program designed for the collection, data entry,
  calculation, and final resolution of portable consumer electronic
  insurance claims that a licensed independent adjuster, a licensed
  agent, an officer of a business entity licensed under this chapter,
  or a supervised individual uses as described by this chapter.
               (3)  "Business entity" means a corporation,
  association, partnership, limited liability company, limited
  liability partnership, or other legal entity.
               (4)  "Home state," with respect to an adjuster, means:
                     (A)  the state in which the adjuster maintains the
  adjuster's principal place of residence or business and is licensed
  to act as a resident adjuster; or
                     (B)  if the state of the adjuster's principal
  place of residence or business does not license adjusters for the
  line of authority sought, a state in which the adjuster is licensed
  and in good standing and that is designated by the adjuster as the
  adjuster's home state.
               (5)  "Person" means an individual or business entity.
         SECTION 2.  Section 4101.002, Insurance Code, is amended by
  amending Subsection (a) and adding Subsection (d) 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; [or]
               (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.
         (d)  A licensed agent acting as a supervisor under Subsection
  (a)(10) is not required to be licensed as an adjuster.
         SECTION 3.  Section 4101.053, Insurance Code, is amended by
  amending Subsection (a) and adding Subsections (c) and (d) to read
  as follows:
         (a)  To qualify for a license under this chapter, an
  individual [applicant] must:
               (1)  comply with this chapter;
               (2)  present evidence satisfactory to the department
  that the applicant:
                     (A)  is at least 18 years of age;
                     (B)  resides in this state or a state or country
  that permits a resident of this state to act as an adjuster in that
  state or country;
                     (C)  has complied with all federal laws relating
  to employment or the transaction of business in the United States,
  if the applicant does not reside in the United States;
                     (D)  is trustworthy; and
                     (E)  has had experience, special education, or
  training of sufficient duration and extent regarding the handling
  of loss claims under insurance contracts to make the applicant
  competent to fulfill the responsibilities of an adjuster; and
               (3)  pass an examination conducted under this
  subchapter or present evidence that the applicant has been exempted
  under Section 4101.056.
         (c)  To qualify for a license under this chapter, a business
  entity must:
               (1)  comply with this chapter; and
               (2)  present evidence satisfactory to the department
  that the applicant:
                     (A)  is eligible to designate this state as its
  home state;
                     (B)  is trustworthy;
                     (C)  has designated a licensed adjuster
  responsible for the business entity's compliance with the insurance
  laws of this state;
                     (D)  has not committed an act that is a ground for
  probation, suspension, revocation, or refusal of an adjuster's
  license under Section 4101.201; and
                     (E)  has paid the fees prescribed under Section
  4101.057.
         (d)  An individual who is a resident of Canada may not be
  licensed under this chapter or designate this state as the
  individual's home state unless the individual has successfully
  passed the adjuster examination and complied with the other
  applicable portions of this section, except that the individual is
  not required to comply with Subsection (a)(2)(B) or (C).
         SECTION 4.  Section 4101.053, Insurance Code, as amended by
  this Act, applies only to an application for a license filed on or
  after the effective date of this Act.  A license application filed
  before the effective date of this Act is governed by the law
  applicable to the application immediately before the effective date
  of this Act, and the former law is continued in effect for that
  purpose.
         SECTION 5.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2699 was passed by the House on May 5,
  2011, by the following vote:  Yeas 144, Nays 2, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2699 was passed by the Senate on May
  17, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor