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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