In the aftermath of Hurricane Ike, the Texas Department of Insurance (TDI) has received complaints from consumers in which they report that through the words, tone, demeanor, or actions of their insurance adjusters, they are feeling inappropriately pressured to engage the services of certain building and repair contractors identified by the adjuster.
TDI reminds all persons, including adjusters, building and repair contractors, and insurers, that pursuant to Section 543.001, an insurer, its representative or any other person may not misrepresent the terms and provisions of a policy. Further as stated in 28 Tex. Admin. Code §5.9970(d) and (e), persons insured under a homeowners or dwelling policy are entitled to have their home repaired by the person of their choice. Further, pursuant to the Insurance Code §542.003(a), an insurer engaging in business in this state may not engage in an unfair claim settlement practice. Not attempting in good faith to effect a prompt, fair, and equitable settlement of a claim submitted in which liability has become reasonably clear constitutes an unfair claim settlement practice under the Insurance Code §542.003(b)(4).
Additional information regarding adjusters is available on the Hurricane Ike Consumer Resource Page located on the Department's website at
www.tdi.state.tx.us/consumer/storms/cpmhurrike.html.
Questions regarding this bulletin should be directed to the Department's Consumer Protection Division at (800) 252-3439 or the Fraud Unit at 512-463-6492.
Mike Geeslin
Commissioner of Insurance