The Texas Department of Insurance issues this bulletin to remind insurers, insurance adjusters, and public insurance adjusters that the 83rd Texas Legislature (2013), enacted House Bill 1183, effective September 1, 2013, which establishes prohibited conduct of insurance adjusters, public insurance adjusters, and roofing contractors.
HB 1183 does not change existing prohibitions in Texas Insurance Code, Chapters 4101 or 4102, but it adds §4101.251 and §4102.163.
Section 4101.251 prohibits licensed adjusters from adjusting a loss related to roofing damage on behalf of an insurer if the adjuster is a roofing contractor or otherwise provides roofing services or roofing products for compensation, or is a controlling person in a roofing-related business. The section also prohibits a roofing contractor from acting as an adjuster or advertising to adjust claims for any property for which the roofing contractor is providing or may provide roofing services, regardless of whether the contractor holds a license under this chapter.
Section 4102.163 prohibits a roofing contractor from acting as a public adjuster or advertising to adjust claims for any property for which the contractor is providing or may provide roofing services, regardless of whether the contractor holds a license under this chapter.
While not contained in HB 1183, public insurance adjusters are prohibited 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. Texas Insurance Code §4102.158.
The department will investigate written complaints of persons violating the Insurance Code and notes that violating Insurance Code Chapters 4101 and 4102 may result in criminal penalties and license denial, suspension, or revocation. In addition, violating Chapter 4102 may result in fines.
If you have any questions regarding this bulletin, please contact Jamie Walker by email at firstname.lastname@example.org, or by telephone at 512-305-6797.
For more information concerning this bulletin, see Questions 12-14 of
Frequently Asked Questions or at the following web address: www.helpinsure.com/home/documents/unlicensedfaq.pdf.
Commissioner of Insurance