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You are here: www.tdi.texas.gov . rules . 2003 . 1013b-059
Archived File - for Reference Use

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SUBCHAPTER G. LICENSING OF INSURANCE ADJUSTERS

28 TAC §19.603

SUBCHAPTER H. LICENSING OF PUBLIC INSURANCE ADJUSTERS

28 TAC §§19.701 ­ 19.712

SUBCHAPTER I. LICENSING FEES

28 TAC §19.802

SUBCHAPTER K. CONTINUING EDUCATION AND

ADJUSTER PRELICENSING EDUCATION PROGRAMS

28 TAC §19.1002

The Commissioner of Insurance adopts amendments to §§19.603, 19.802, and 19.1002, and new §§19.701-19.712 concerning public insurance adjusters. The amended §§19.603, 19.802, 19.1002 and new §§19.701 ­ 19.703, 19.705 -19.707, and 19.709 -19.712 are adopted without changes to the proposed text as published in the August 22, 2003 issue of the Texas Register (28 TexReg 6704) and will not be republished. Sections 19.704 and 19.708 are adopted with changes.

The amendments and new sections are necessary to implement the public insurance adjuster license type added by the enactment of Insurance Code Article 21.07-5 by Senate Bill 127, 78th Legislature, Regular Session. The adoption of the repeal of §§19.701 ­ 19.709 is published elsewhere in this issue of the Texas Register .

These new and amended sections implement Article 21.07-5 and provide effective regulation of public insurance adjusters. Senate Bill 127 added, for the first time, licensing requirements for public insurance adjusters and a structure to regulate the activities of such adjusters, who are defined in the law as those persons who, for compensation, take certain actions, including negotiating or settling claims on behalf of insureds for loss or damage under policies of insurance covering real or personal property. The adopted sections provide further guidance to enhance the requirements of Article 21.07-5, consistent with the statute's public protection goals, by establishing requirements for: registering public insurance adjuster trainees and licensing resident and nonresident corporations, partnerships, and individuals; maintaining and demonstrating financial responsibility; setting license and certificate fees; completing continuing education; reporting criminal history and providing fingerprints; prescribing contract terms; and defining the term "advertisement" as used in Article 21.07-5.

The amendments to §19.603 remove an obsolete reference to public insurance adjusters and update references to the department.

New §19.701 references definitions of terms used in the proposed new subchapter. Section 19.702 establishes the type of public insurance adjuster license. Section 19.703 establishes the criteria for registering and renewing temporary training certificates. Section 19.704 references statutory licensing criteria for individuals and establishes the criteria for licensing corporations and partnerships as public insurance adjusters.

Section 19.705 establishes the financial responsibility requirement for public insurance adjusters. The requirement is based on the perils that the financial responsibility must cover under Article 21.07-5, other Insurance Code financial responsibility requirements, and the type and amount of financial responsibility required in other states that license public insurance adjusters. Section 19.706 establishes financial responsibility reporting requirements for public insurance adjusters. Section 19.707 establishes the acceptable type of financial responsibility. These two amended sections are based on the department's current procedures and requirements for other license types that maintain financial responsibility through surety bonds.

Section 19.708 establishes public insurance adjuster contract requirements. Section 19.709 establishes criminal history filing requirements for nonresident public insurance adjuster applicants and clarifies the timing of the annual nonresident affidavit. Section 19.710 establishes criminal history filing requirements for nonresident persons required to file biographical information under §19.704. Section 19.711 establishes fingerprint requirements for public insurance adjuster applicants. Section 19.712 defines the term "advertisement."

The amendments to §19.802 add paragraphs (b)(20) and (21) and establish licensing and renewal fees for public insurance adjusters and temporary certificate holders. The amendment to §19.1002 (b)(16) incorporates public insurance adjusters into the department´s existing licensee continuing education program.

General: Commenters expressed support for the proposal and their intent to continue working with the department in the coming months regarding the development of the public insurance adjusters code of ethics and other potential rules and regulations.

Response: The Department appreciates these comments and welcomes the input of interested parties as we continue the implementation of SB 127.

§§19.701(b)(1) and (2) and 19.704(c)(1)(A):A commenter noted that the proposed rule would not permit a foreign corporation or partnership to be licensed as a public insurance adjuster.

Response: The department agrees that these sections do not permit issuing a public insurance adjuster license to entities that are organized under the laws of foreign governments. This is consistent with the Article 21.07-5 §15A (a) requirement that entities be organized under the laws of a state of the United States. The department has inserted the term "territory" to clarify that the proposal relies on the definition of the term "state" at Government Code Section 311.005 (7), which includes all areas under the jurisdiction of the United States.

§19.704(c)(7): A commenter requested a clarification of the requirement that each officer, director, member, manager, partner, or any other person who has the right or ability to control the license holder meet the qualifications for licensure set forth in Insurance Code Article 21.07-5 §§5A and 15A.

Response: The department has reviewed §19.704(c)(7), as well as §19.704(c)(8), and has determined that §19.704(c)(8) alone is sufficient to meet the Article 21.07-5 §§5A and 15A requirements that the department adopt entity licensing rules analogous to the provisions of Article 21.07. To clarify the requirement, the department is removing the proposed §19.704(c)(7) and renumbering the remaining provisions.

§19.708(b)(7) - (10):A commenter questioned the number of disclosures and suggested that the disclosure clause referring to "cancellation" actually refer to the law that controls rescinding the contract.

Response: The disclosures are for the purpose of providing consumers with basic information about public insurance adjusters and the consumer's rights under the contract and Insurance Code. The commissioner is authorized to require these additional disclosures under Article 21.07-5 §23(d). Of the proposed disclosures, two clauses refer to rescinding contracts. Both are based on Article 21.07-5. Section 19.708(b)(7)(A) is based on the Article 21.07-5 §23(d) requirement that each public insurance adjuster contract contain a clause stating that the contract may be canceled on written notice to the licensee within 72 hours of signature. Section 19.708(b)(8) is based on the Article 21.07-5 §22(b) requirements regarding compensation. In reviewing these sections the department agrees with the commenter that the clause at §19.708(b)(7)(A) does not fully refer to the Article 21.07-5 requirement that the rescission must be by "written notice to the licensee." To avoid confusion for consumers, the department has changed this disclosure to clarify this requirement.

§19.708(b)(10):A commenter questioned the type of information the department will be providing to consumers contacting the department with questions or complaints at the 1- 800 number required in this disclosure.

Response: The department's consumer protection division is responsible for handling calls received at the 1-800 number. That division routinely responds to questions such as whether persons and firms are properly licensed to engage in a regulated activity, and regarding how to file complaints with the department. That division will process inquiries and complaints received regarding public insurance adjusters in a similar manner to that by which it processes inquiries and complaints regarding other licensees and insurance carriers.

NAMES OF THOSE COMMENTING

FOR AND AGAINST THE SECTIONS.

For:Office of Public Insurance Counsel.

For with changes: Beneke Adjusters International

Against:

None.

These sections are adopted under Insurance Code Articles 21.01, 21.01-1, 21.01-2, and 21.07-5, and §§36.001 and 801.056, and Government Code §2054.252. Article 21.01 §3 provides that Insurance Code Chapter 21, Subchapter A applies to the listed licensees and §4 authorizes the commissioner to adopt rules to implement the subchapter. Article 21.01-1 §1 authorizes the commissioner to require applicants to take examinations through a department-designated vendor. Article 21.01-1 §3 authorizes the commissioner to develop a continuing education program for licensees. Article 21.01-2 §3A authorizes the commissioner to refuse, deny, revoke or suspend a license or license application. Article 21.07-5 §29 authorizes the department to adopt rules necessary to implement Article 21.07-5 and define the term advertisement. Insurance Code §801.056 authorizes the commissioner to require applicants to submit a complete set of fingerprints prior to licensure. Government Code §2054.252(g) requires the department to increase licensing fees in an amount sufficient to cover the Texas OnLine Authority subscription fee cost. Insurance Code §36.001 authorizes the Commissioner of Insurance to adopt any rules necessary and appropriate to implement the duties and powers of the Texas Department of Insurance under the Insurance Code and other laws of this state.

The following statutes are affected by the proposal: Insurance Code Article 21.07-5 Insurance Code Articles 21.01, 21.01-1, 21.01-2, 21.07-5, and §801.056 §19.802 Government Code §2054.252 and Insurance Code Articles 21.01-1 and 21.07-5 §19.1002 Insurance Code Articles 21.01, 21.01-1, and 21.07-5

SUBCHAPTER G. LICENSING OF INSURANCE ADJUSTERS

§19.603. Interpretations of the Act.

(a) For the purpose of administration of the Act:

(1) the phrase "undisputed and/or uncontested losses" as used in the Act, §1(b)(4), means "losses that do not involve negotiations between the parties on issues involving coverage, damage, or liability";

(2) the word "principally" as used in the Act, §10(a)(1), is interpreted to mean "regularly" as used elsewhere in the Act;

(3) the word "regularly" means "acting in the capacity of an adjuster as a routine part of established employment duties."

(b) Marine surveyors, as usually and customarily defined, are not subject to licensing under the Act, unless they regularly investigate, adjust, or supervise losses on behalf of an insurer or self-insured.

(c) The department recognizes that certain risks are commonly referred to as "self-insured" or "self-handlers" in reference to insurance claims and losses. For the purposes of administration of the Act and in reference to those entities operating as such, the department interprets that any individual specifically employed for the purpose of supervision, investigation, or adjusting of losses is subject to the provisions of the Act, and the individual or individuals who have the primary responsibility for the supervision, investigation, or adjustment of losses is subject to the provisions of the Act.

SUBCHAPTER H. LICENSING OF PUBLIC INSURANCE ADJUSTERS

§19.701. Definitions.

(a) Words and terms defined in Insurance Code Article 21.07 §1A shall have the same meaning when used in this subchapter.

(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Corporation--A legal entity that is organized under the business corporations laws or limited liability company laws of this state, another state, or a territory of the United States . The licensing and regulation of a limited liability company is subject to all provisions of this subchapter that apply to a corporation licensed under this subchapter.

(2) Partnership--An association of two or more persons organized under the partnership laws or limited liability partnership laws of this state, another state, or a territory of the United States . The term includes a general partnership, limited partnership, limited liability partnership, and limited liability limited partnership.

(3) Public Insurance Adjuster--A person licensed under Insurance Code Article 21.07-5 §§5, 5A, 15 or 15A or §19.704 of this subchapter (relating to Public Insurance Adjuster Licensing).

§19.702. Type of Public Insurance Adjuster Licenses. The department shall issue a single public insurance adjuster license pursuant to Insurance Code Article 21.07-5 and the provisions of this subchapter.

§19.703. Temporary Training Certificates.

(a) A temporary training certificate applicant must file with the department a fully completed application, on a form as required by the commissioner, that is accompanied by the temporary certificate application fee, proof of financial responsibility and any other information the commissioner deems necessary.

(b) An individual may not hold more than two 180-day temporary training certificates, including renewals, during an 18 month period.

(c) Except as prohibited in subsection (b) of this section, an individual may renew a temporary training certificate by filing with the department 30 days prior to the expiration of an existing temporary training certificate a fully completed application, on a form as required by the commissioner, that is accompanied by the temporary certificate renewal fee, proof of financial responsibility and any other information the commissioner deems necessary.

§19.704. Public Insurance Adjuster Licensing.

(a) Any individual that desires a public insurance adjuster license must file with the department a fully completed license application, on a form as required by the commissioner, and otherwise meet the licensing qualification requirements of Insurance Code Article 21.07-5 §§5 or 15 and this subchapter.

(b) Any corporation or partnership that desires a public insurance adjuster license must file with the department a fully completed license application on a form as required by the commissioner.

(c) The department shall issue a license to a resident or nonresident corporation or partnership if the department finds that:

(1) the corporation or partnership is:

(A) organized under the laws of this state or any other state or territory of the United States ;

(B) admitted to conduct business in this state by the secretary of state, if required; and

(C) authorized by its articles of incorporation or its partnership agreement to act as a public insurance adjuster;

(2) the corporation or partnership meets the definition of that entity adopted under Insurance Code Article 21.07 §1A;

(3) at least one officer of the corporation or one active partner of the partnership and all other persons performing any acts of a public insurance adjuster on behalf of the corporation or partnership in this state are individually licensed by the department separately from the corporation or partnership;

(4) the corporation or partnership intends to be actively engaged in the business of public insurance adjusting;

(5) the corporation or partnership has filed a separate registration with the department for each location from which it will conduct business as a public insurance adjuster;

(6) the corporation or partnership has submitted the application, appropriate fees, proof of financial responsibility, and any other information required by the department; and

(7) no officer, director, member, manager, partner, or any other person who has the right or ability to control the license holder has:

(A) had a license suspended or revoked or been the subject of any other disciplinary action by a financial or insurance regulator of this state, another state, or the United States ;

(B) committed an act for which a license may be denied under Insurance Code Article 21.01-2 or 21.07-5.

(d) Nothing contained in this section shall be construed to permit any unlicensed employee or representative of any corporation or partnership to perform any act of a public insurance adjuster without obtaining a public insurance adjuster license.

(e) Each corporation or partnership applying for a public insurance adjuster license shall file, under oath, on a form developed by the department, biographical information for each of its executive officers and directors or unlicensed partners who administer the entity's operations in this state, and shareholders who are in control of the corporation, or any other partners who have the right or ability to control the partnership. If any corporation or partnership is owned, in whole or in part, by another entity, a biographical form is required for each individual who is in control of the parent entity.

(f) Each corporation or partnership shall notify the department not later than the 30th day after the date of:

(1) a felony conviction of a licensed public insurance adjuster of the entity or any individual associated with the corporation or partnership who is required to file biographical information with the department;

(2) an event that would require notification under Insurance Code §81.003; and

(3) the addition or removal of an officer, director, partner, member, or manager.

(g) A person may not acquire in any manner any ownership interest in an entity licensed as a public insurance adjuster under this subchapter if the person is, or after the acquisition would be directly or indirectly in control of the license holder, or otherwise acquire control of or exercise any control over the license holder, unless the person has filed the following information with the department under oath:

(1) a biographical form for each person by whom or on whose behalf the acquisition of control is to be effected;

(2) a statement certifying that no person who is acquiring an ownership interest in or control of the license holder has been the subject of a disciplinary action taken by a financial or insurance regulator of this state, another state, or the United States;

(3) a statement certifying that, immediately on the change of control, the license holder will be able to satisfy the requirements for the issuance of the public insurance adjuster license; and

(4) any additional information that the commissioner may prescribe as necessary or appropriate to the protection of the insurance consumers of this state or as in the public interest.

(h) If a person required to file a statement under subsection (g) of this section is a partnership, limited partnership, syndicate, or other group, the commissioner may require that the information required by paragraphs (1)-(4) of that subsection for an individual be provided regarding each partner of the partnership or limited partnership, each member of the syndicate or group, and each person who controls the partner or member. If the partner, member, or person is a corporation or the person required to file the statement under subsection (g) of this section is a corporation, the commissioner may require that the information required by paragraphs (1)-(4) of that subsection be provided regarding:

(1) the corporation;

(2) each individual who is an executive officer or director of the corporation; and

(3) each person who is directly or indirectly the beneficial owner of more than 10 percent of the outstanding voting securities of the corporation.

(i) The department may disapprove an acquisition of control if, after notice and opportunity for hearing, the commissioner determines that:

(1) immediately on the change of control the license holder would not be able to satisfy the requirements for the public insurance adjuster license;

(2) the competence, trustworthiness, experience, and integrity of the persons who would control the operation of the license holder are such that it would not be in the interest of the insurance consumers of this state to permit the acquisition of control; or

(3) the acquisition of control would violate the Insurance Code or another law of this state, another state, or the United States .

(j) Notwithstanding subsection (h) of this section, a change in control is considered approved if the department has not proposed to deny the requested change before the 61st day after the date the department receives all information required by this section.

(k) The commissioner is the corporation's or partnership's agent for service of process in the manner provided by Insurance Code Chapter 804 in a legal proceeding against the corporation or partnership if:

(1) the corporation or partnership licensed to transact business in this state fails to appoint or maintain an agent for service in this state;

(2) an agent for service cannot with reasonable diligence be found; or

(3) the license of a corporation or partnership is revoked.

(l) If a license holder does not maintain the qualifications necessary to obtain the license, the department shall revoke or suspend the license or deny the renewal of the license under Insurance Code Article 21.01-2 or 21.07-5.

(m) Each public insurance adjuster shall maintain all insurance records, including all records relating to customer complaints received from customers and the department, separate from the records of any other business in which the person may be engaged and in the manner specified in Insurance Code Article 21.07-5.

(n) The department may license a depository institution or entity chartered by the federal Farm Credit Administration under the farm credit system established under 12 U.S.C. Section 2001 et seq., as amended, to act as a public insurance adjuster in the manner provided for the licensing of a corporation under this section.

§19.705. Financial Responsibility Requirement.

(a) Each public insurance adjuster, as a condition for being licensed, and each trainee as a condition for receiving a temporary training certificate and as a condition for continuing the license or training certificate in force, must maintain proof of financial responsibility by obtaining a surety bond in the principal sum of not less than $10,000 that covers all the required perils and losses set forth under Insurance Code Article 21.07-5 §

(b) Each public insurance adjuster and trainee must obtain separate proof of financial responsibility and may not rely on the bond of any other public insurance adjuster or trainee to demonstrate proof of financial responsibility.

§19.706. Demonstrating Financial Responsibility. The public insurance adjuster applicant, licensee, or trainee shall demonstrate proof of financial responsibility by providing to the department the original surety bond upon application, renewal, or replacement of the bond.

§19.707. Type of Financial Responsibility. A surety bond used to maintain and demonstrate proof of financial responsibility under §§19.705 and 19.706 of this subchapter (relating to Financial Responsibility Requirement and Demonstrating Financial Responsibility) must:

(1) be in the form specified by the department;

(2) be executed by the public insurance adjuster as principal and a surety company authorized to do business in this state as surety;

(3) be payable to the Texas Department of Insurance for the use and benefit of an insured, conditioned that the public insurance adjuster shall pay any final judgment recovered against it by an insured;

(4) provide that the surety will give no less than 30 days written notice of bond termination to the licensee and the department;

(5) be separate from any other financial responsibility obligation; and

(6) not be used to demonstrate professional responsibility for any other license, certification, or person.

§19.708. Public Insurance Adjuster Contracts.

(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;

(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 e-mail 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 faced 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 in accordance with Insurance Code Article 6.13 or §862.053 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 faced type:

(A) "IMPORTANT NOTICE: You may contact the Texas Department of Insurance to obtain information on public insurance adjusters, your rights and complaints at: 1-800-252-3439 or you may write the Texas Department of Insurance at P. O. Box 149104, Austin, Texas 78714-9104, Fax # (512) 475-1771.";

(B) "ADVISO IMPORTANTE: Puede comunicarse con el Departamento de Seguros de Texas para obtener informaciaon acera ajustores publicos de seguros, o sus derechos o quejas al: 1-800-252-3439 o puede escribir al Departamento de Seguros de Texas P. O. Box 149104, Austin, Texas 78714-9104, Fax # (512) 475-1771."; and

(11) a clear statement of the public insurance adjuster´s commission including:

(A) the method of calculating compensation for the public insurance adjuster, either hourly, flat fee, or percentage of settlement; and

(B) a statement that under any method of compensation the total commission payable to the public insurance adjuster may not exceed 10% of the amount of the insurance settlement.

(c) The contract may not contain any terms or conditions which have the effect of limiting or nullifying any requirements of the Insurance Code, this subchapter, or other rules of the department.

§19.709. Nonresident Applicants and License Holders.

(a) An applicant for a nonresident public insurance adjuster license or temporary certificate must, through the law enforcement agency of the applicant's state of residence, submit a copy of the applicant's criminal history records to the department. The department shall use the criminal history records to determine eligibility for issuance of a license in accordance with this subchapter and other laws of this state.

(b) The annual nonresident affidavit required by Insurance Code Article 21.07-5 §15(d) shall be made on a form available from the department and filed one year after the date the license was issued and annually thereafter.

§19.710. Nonresidents Required to File Biographical Information. A nonresident who is required to file biographical information under §19.704 of this subchapter (relating to Public Insurance Adjuster Licensing) shall, through the law enforcement agency of the person's state of residence, submit a copy of the applicant's criminal history records to the department. The department shall use the criminal history records to determine eligibility for issuance of a license in accordance with this subchapter and other laws of this state.

§19.711. Fingerprint Requirement.

(a) Any individual who submits to the department a new application to be licensed or registered under Insurance Code Article 21.07-5 and any individual from whom biographical information is required under §19.704 of this subchapter (relating to Public Insurance Adjuster Licensing) shall attach to the application or biographical information a completed, legible fingerprint card.

(b) Fingerprints obtained under this section shall be handled in the manner set forth in §19.1807 of this chapter (relating to Confidentiality and Custody of Fingerprint Cards).

§19.712. Advertisement.

(a) As used in Insurance Code Article 21.07-5, "advertisement" includes:

(1) printed and published material, audio visual material and descriptive literature of a public insurance adjuster used in direct mail, newspapers, magazines, radio, telephone and television scripts, internet web sites, billboards, and similar displays;

(2) descriptive literature and promotional aids of all kinds issued by a public insurance adjuster for presentation to members of the public, including circulars, leaflets, booklets, depictions, illustrations, and form letters;

(3) prepared promotional talks, presentations and materials for use by a public insurance adjuster, and those representations made on a recurring basis by a public insurance adjuster to members of the public;

(4) material used to:

(A) solicit contracts from insureds; or

(B) modify existing contracts;

(5) material included with a contract when the contract is delivered and materials used in the solicitation of contract renewals, extensions or reinstatements, except those extensions or reinstatements provided for in the contract;

(6) lead card solicitations, defined as communications distributed to the public which, regardless of form, content, or stated purpose, are intended to result in the compilation or qualification of a list containing names or other personal information regarding insureds who have expressed a specific interest in obtaining assistance with having their claims settled, and which are intended to be used to solicit residents of this state for the execution of a contract for a public insurance adjuster´s services; and

(7) any other communication directly or indirectly related to a public insurance adjuster contract, and intended to result in the eventual execution of such a contract.

(b) "Advertisement" does not include:

(1) communications or materials used within a public insurance adjuster´s own organization, not used as promotional aids and not disseminated to the public;

(2) communications with insureds other than materials soliciting insureds to enter, renew, extend or reinstate a contract for a public insurance adjuster´s services; and

(3) material used solely for the recruitment, training, and education of a public insurance adjuster´s personnel and subcontractors, provided it is not also used to induce the public to enter, renew, extend or reinstate a contract for a public insurance adjuster´s services.

SUBCHAPTER I. LICENSING FEES

§19.802. Amount of Fees.

(a) With each application for original license or renewal, notice of appointment, or request for qualifying examination, the applicant or licensee shall submit the amount shown in this section. The fees for qualifying examinations and reexaminations only apply if the Texas Department of Insurance does not contract with a testing service for the provisions of these examinations.

(b) The amounts of fees are as follows:

(1) General lines - life, accident, and health agent:

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10;

(D) qualifying examination--$50.

(2) County mutual agent:

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10.

(3) Insurance adjuster:

(A) original application--$50;

(B) renewal--$50;

(C) qualifying examination--$50.

(4) Insurance adjuster (emergency license): original application--$20.

(5) General lines - property and casualty agent:

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10;

(D) qualifying examination--$50;

(E) emergency application for license issued under Insurance Code Article 21.14 §5--$50 (for original application with no additional charge for renewal).

(6) Full-time home office salaried employee registration: original application--$50.

(7) Insurance service representative:

(A) original application--$50;

(B) renewal--$50;

(C) qualifying examination--$50;

(D) appointment of a currently licensed insurance service representative--$10.

(8) Managing general agent:

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10;

(D) qualifying examination--$50;

(E) emergency application for license issued under Insurance Code Article 21.07-3 §7--$50.

(9) Limited lines agent (includes agents licensed under Insurance Code Articles 21.01-1 §4 and 21.14 §6):

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10;

(D) qualifying examination--$50.

(10) Surplus lines agent:

(A) original application--$50;

(B) renewal--$50;

(C) qualifying examination--$50.

(11) Specialty insurance agent:

(A) original application--$50 (per license authority);

(B) renewal--$50 (per license authority);

(C) additional appointment--$10.

(12) Title attorney:

(A) original application--$50;

(B) renewal--$48.

(13) Life insurance not exceeding $15,000:

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10.

(14) Risk manager:

(A) original application--$50;

(B) renewal--$50;

(C) qualifying examination--$50.

(15) Life and health insurance counselor:

(A) original application--$50;

(B) renewal--$50;

(C) qualifying examination--$50.

(16) Funeral prearrangement life insurance agent:

(A) original application--$50;

(B) renewal--$50;

(C) additional appointment--$10.

(17) Reinsurance intermediary:

(A) original application--$500;

(B) renewal--$500.

(18) Temporary license application--For license types authorized by Insurance Code Article 21.07 §3A to be issued on a temporary basis, $100 in addition to the original license application fee for each license type.

(19) Utilization review agent:

(A) original application--$2,150;

(B) renewal--$545.

(20) Public insurance adjuster:

(A) original application -- $50;

(B) renewal -- $50;

(C) qualifying examination $50.

(21) Public insurance adjuster temporary training certificate:

(A) training certificate -- $50;

(B) renewal -- $50.

(c) The limited lines agent license is a single license type that is authorized under two Insurance Code articles. Persons licensed as limited lines agents may be appointed to sell or solicit any line authorized by Insurance Code Articles 21.07-1 §4 and/or 21.14 §6 without payment of additional license fees or examinations other than the necessary additional company appointment fees.

(d) A general lines agent appointed as subagent by another general lines agent is not a separate license type. All fees are the same for general lines agents appointed as subagents, as are fees for general lines agents appointed by insurance companies. Only general lines agents may appoint subagents and the subagent must be licensed as a general lines agent. General lines agents may simultaneously have multiple subagent and insurance company appointments.

(e) All fees are the same for both residents and nonresidents. Insurance Code Article 21.11 does not create an additional license type for nonresidents, but designates a procedure for licensing nonresidents under appropriate Texas license types.

SUBCHAPTER K. CONTINUING EDUCATION AND ADJUSTER PRELICENSING EDUCATION PROGRAMS.

§19.1002. Definitions.

(a) Words and terms defined in Insurance Code Article 21.07 §1A shall have the same meaning when used in this subchapter .

(b) The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Adjuster--An individual licensed under Insurance Code Article 21.07-4.

(2) Application level--Demonstration of the ability to use learned materials in a new situation, usually involving the application of rules, policies, methods, computations, laws, theories, or any other relevant and available information.

(3) Assignee--Any provider which is authorized as set forth in §19.1008(f) of this title (relating to Certified Course Advertising, Modification, and Assignment).

(4) Authorized provider representative--The individual a provider designates as the contact individual responsible for all of the provider's communications and filings with the department.

(5) Business of insurance--Has the same meaning as set forth in Insurance Code, §101.051.

(6) Classroom course--A course complying with §19.1009(c) of this title (relating to Types of Courses).

(7) Classroom equivalent course--A course complying with §19.1009(d) of this title.

(8) Certificate of completion--A document complying with §19.1007(a)(7) of this title (relating to Course Certification Submission Applications, Course Expirations, and Resubmissions).

(9) Certified course--A classroom, classroom equivalent, or self-study course offered by a registered provider that the department or its designee has determined meets the requirements of this subchapter.

(10) Department--Texas Department of Insurance.

(11) Disinterested third party--An individual who is:

(A) not related to a student by blood, adoption, or marriage as a parent, child, grandparent, sibling, niece, nephew, aunt, uncle, or first cousin; or

(B) not an employee or subordinate of the student.

(12) Ethics course--A course that deals with usage and customs among members of the insurance profession, involving their moral and professional duties toward one another, toward clients, toward insureds, and toward insurers.

(13) Insurance course--A course primarily focused on teaching subjects related to the business of insurance.

(14) Interactive inquiries--An interactive electronic component that complies with §19.1009(d)(2) of this title.

(15) Knowledge level--Recall of specific facts, patterns, methods, rules, dates, or other information that must be committed to memory.

(16) Licensee -- An adjuster or individual holding a license under the authority of Insurance Code Articles 21.07-1 §§2, 4 or 6 (general lines - life, accident, and health agent, limited lines agent, or life insurance not exceeding $15,000 agent); 21.07-2 (life and health insurance counselor); 21.07-3 (managing general agent); 21.07-5 (public insurance adjuster); or 21.14 §§2, 6, 8, or 9 (general lines - property and casualty agent, limited lines agent, insurance service representative or county mutual agent).

(17) National designation certification--A professional designation which is:

(A) nationally recognized in the insurance industry; and

(B) issued by an entity that maintains a not-for-profit status and has been in existence for at least five years.

(18) One-time-event--A type of classroom course complying with §19.1009(f) of this title.

(19) Provider--An individual or organization including a corporation, partnership, depository institution, insurance company, or entity chartered by the Farm Credit Administration as defined in Insurance Code Article 21.07 §2(v), registered with the department to offer continuing education courses for licensees and/or prelicensing instruction for adjusters.

(20) Provider registration--The process of a provider seeking permission to offer continuing education courses for licensees and prelicensing education for adjusters.

(21) Qualifying course--Insurance courses for which a licensee may receive continuing education credit and are:

(A) offered for credit by accredited colleges, universities, or law schools;

(B) part of a national designation certification program;

(C) approved for classroom, classroom equivalent, or participatory credit by the continuing education approval authority of a state bar association or state board of public accountancy; or

(D) certified or approved for continuing education credit under the guidelines of the Federal Crop Insurance Corporation.

(22) Reporting period--The period from the issue date or last renewal date of the license to the expiration date of the license, generally a two-year period.

(23) Self study--A course complying with §19.1009(e) of this title.

(24) Speaker--An individual who shall be speaking from special knowledge regarding the business of insurance obtained through experience and position in professional or social organizations, industry, or government.

(25) Student--A licensee or adjuster applicant enrolled in and attending a certified course for credit.

(26) TDI license number--An identification number the department assigns to the licensee and found on the license certificate.

(27) Visually monitored environment--An environment permitting visual identification of students and visual confirmation of attendance, including observation by camera.



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Last updated: 09/06/2014

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