Texas Administrative Code › Title 28 - INSURANCE › Part 1 - TEXAS DEPARTMENT OF INSURANCE › Chapter 19 - LICENSING AND REGULATION OF INSURANCE PROFESSIONALS › Subchapter H - LICENSING OF PUBLIC INSURANCE ADJUSTERS › Section 19.708 - Public Insurance Adjuster Contracts

Current through Reg. 49, No. 28; July 12, 2024
(a) A public insurance adjuster may not,
				  directly or indirectly, act within this state as a public insurance adjuster
				  without having first entered into a written contract executed in duplicate by
				  the licensee and the insured or the insured's duly authorized
				  representative.
(b) A public
				  insurance adjuster's written contract with an insured must contain:
(1) the name, address, and license number of
				  the public insurance adjuster negotiating the contract and, if applicable, the
				  name, address, and license number of the public insurance adjuster's employing
				  public insurance adjuster, with each page of the contract prominently
				  displaying the license number(s);
(2) the public insurance adjuster's telephone
				  and fax number, including area code;
(3) the mailing and physical addresses to
				  which notice of cancellation and all communications to the public insurance
				  adjuster may be delivered;
(4) if
				  any part of the contract or solicitation is made via the Internet, the email
				  and website address to which notice of contract cancellation and all
				  communications to the public insurance adjuster may be delivered;
(5) the date and time the contract was
				  signed;
(6) for each nonresident
				  public insurance adjuster named in the contract, the name and address of the
				  nonresident public insurance adjuster's agent for service of process;
(7) the following separate statements in
				  12-point bold type on the signature page of the contract:
(A) "NOTICE: The insured may cancel this
				  contract by written notice to the public insurance adjuster within 72 hours of
				  signature for any reason.";
(B) "We
				  represent the insured only."; and
(C) "You are entering into a service
				  contract. You are being charged a fee for this service. You do not have to
				  enter into this contract to make a claim for loss or damage on a policy of
				  insurance.";
(8) the
				  statement: "If the insurance carrier pays or commits in writing to pay to the
				  insured the policy limits of the insurance policy under Insurance Code
				  §862.053, concerning Fire and Marine Insurance Companies, within 72 hours
				  of the loss being reported to the insurer, the public insurance adjuster is not
				  entitled to compensation based on a percentage of the insurance settlement, but
				  is entitled to reasonable compensation for the public insurance adjuster's time
				  and expenses provided to the insured before the claim was paid or the written
				  commitment to pay was received.";
(9) the statement: "NOTICE: A public
				  insurance adjuster may not participate directly or indirectly in the
				  reconstruction, repair, or restoration of damaged property that is the subject
				  of a claim adjusted by the public insurance adjuster or 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, any salvage firm, repair firm, or other firm that
				  obtains business in connection with any claim the public insurance adjuster has
				  a contract or agreement to adjust.";
(10) on the first or second page of the
				  contract, the following English and Spanish notices in 10-point bold type:
(A) "IMPORTANT NOTICE: You may contact the
				  Texas Department of Insurance to get information about public insurance
				  adjusters, your rights as a consumer, or information about how to file a
				  complaint by calling 1-800-252-3439; or you may write the Texas Department of
				  Insurance, at MC: CO-CP, P.O. Box 12030, Austin, Texas 78711-2030.";
(B) "ADVISO IMPORTANTE: Puede communicarse
				  con el Departamento de Seguros de Texas para obtener informacion acera
				  ajustadores publicos de seguros, sus derechos como consumidor, o informacion
				  sobre como presenter una queja llamando 1-800-252-3439; o puede escribir al
				  Departamento de Seguros de Texas, en MC: CO-CP, P.O. Box 12030, Austin, Texas
				  78711-2030.
(11) a
				  statement that under any method of compensation, the total commission payable
				  to the public insurance adjuster, including expenses, direct costs, or any
				  other costs accrued by the public insurance adjuster, must not exceed 10% of
				  the amount of the insurance settlement;
(12) if applicable, a statement disclosing
				  how payments issued before the effective date of the contract will be used in
				  determining compensation to the public insurance adjuster; and
(13) a clear and prominent statement of the
				  public insurance adjuster's commission including:
(A) the method of calculating the commission
				  for the public insurance adjuster, whether an hourly rate, flat fee, percentage
				  of settlement, or another method of compensation, specifically:
(i) if an hourly rate, the contract must
				  state the hourly rate and how it will be applied to hours of service provided
				  by the public insurance adjuster to calculate the amount payable;
(ii) if a flat fee, the contract must state
				  the amount that will be payable to the public insurance adjuster;
(iii) if a percentage, the contract must
				  state the exact percentage that will be applied to the settlement on the claim
				  to calculate the amount payable to the public insurance adjuster; or
(iv) if another method of calculation is
				  chosen, the contract must include a detailed explanation of how the amount
				  payable will be determined based on services provided by the public insurance
				  adjuster;
(B) a general
				  description of services the public insurance adjuster will provide under the
				  contract;
(C) a description of the
				  claim and property damage, location, and event date;
(D) if based on an hourly rate, a provision
				  that the public insurance adjuster will provide an invoice for services that
				  includes a detailed listing of services provided and separate costs payable to
				  the public insurance adjuster as part of the commission based on the claim
				  settlement, including expenses, direct costs, and any other accrued
				  costs.