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