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
Universal Citation: 28 TX Admin Code § 19.708
Current through Reg. 50, No. 13; March 28, 2025
(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.
(c) The contract must not contain any terms or conditions that have the effect of limiting or nullifying any requirements of the Insurance Code, this subchapter, or other rules of the department.
(d) All public insurance adjusters in Texas must use a written contract that is in the form prescribed by the department and that complies with all relevant Insurance Code requirements and department rules. Public insurance adjusters must select from the following contract form options:
(1) a standard language contract
developed by the department, identified by FIN 535; or
(2) a contract filed and approved by the
department before use.
(e) All contracts must be submitted with an original adjuster license application or an application for renewal to the department's Agent and Adjuster Licensing Office. Contracts also must be submitted to the office upon any modification or amendment of terms or conditions between license renewals.
(f) The failure by a public insurance adjuster or other individual to use a properly authorized and approved contract may result in suspension, nonrenewal, revocation of the adjuster's license, or other administrative penalty.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
