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You are here: Home . bulletins . 2005 . b-0060-05
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COMMISSIONER'S BULLETIN # B-0060-05

September 30, 2005


To: ALL INSURANCE COMPANIES, CORPORATIONS, EXCHANGES, MUTUALS, RECIPROCALS, ASSOCIATIONS, LLOYDS, OR OTHER INSURERS WRITING PROPERTY AND CASUALTY INSURANCE IN THE STATE OF TEXAS AND TO AGENTS AND REPRESENTATIVES, ADJUSTERS, AND PUBLIC INSURANCE ADJUSTERS, AND THE PUBLIC GENERALLY


Re: Hurricane Rita - An Extraordinary Event; Public Insurance Adjusters

On September 24, 2005 , Hurricane Rita struck Texas causing significant property damage. In the current disaster circumstances, the Texas Department of Insurance (TDI) reminds all persons, including building and repair contractors, that Texas Insurance Code Chapter 4102 (formerly Article 21.07-5) requires all persons acting as public insurance adjusters to be licensed by the department. The Insurance Code provides for both civil and criminal penalties for violating this licensing requirement.

Insurance Code §4102.001(3) (formerly Article 21.07-5 §3(A)) defines a public insurance adjuster as:

(A) a person who, for direct, indirect, or any other compensation:

  1. acts on behalf of an insured in negotiating for or effecting the settlement of a claim or claims for loss or damage under any policy of insurance covering real or personal property; or
  2. on behalf of any other public insurance adjuster, investigates, settles, or adjusts or advises or assists an insured with a claim or claims for loss or damage under any policy of insurance covering real or personal property; or

(B) a person who advertises, solicits business, or holds himself or herself out to the public as an adjuster of claims for loss or damage under any policy of insurance covering real or personal property.

Further, Insurance Code §4102.158 (formerly Article 21.07-5 §23(l)) prohibits public insurance adjusters from participating 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 engaging 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 licensee has a contract or agreement to adjust.

Contractors are not listed among the persons exempt from the licensing requirement in Insurance Code §4102.002 (formerly Article 21.07-5 §3(B)).

Chapter 4102 does not prohibit contractors from providing estimates or discussing those estimates and other technical information with an insurer or its adjuster.

Additional information regarding public insurance adjusters, including fees public insurance adjusters are allowed to charge for services, is available on the department's website at: http://www.tdi.state.tx.us/agent/agpubadj2.html

Questions regarding this bulletin may be directed to the Enforcement Division at (512) 305-7239 or the Fraud Unit at (512) 463-6492.



Last updated: 09/07/2014

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