| (a) Any individual that desires a public 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 Chapter 4102,
Subchapter B, concerning License Requirements, 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 will 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 §4001.003, concerning
Definitions;
(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 submitted the
application, appropriate fees, proof of financial responsibility,
and any other information required by the department; and
(6) 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; or
(B) committed an act for which a license may be denied
under Insurance Code §4005.101, concerning Grounds for License
Denial or Disciplinary Action, or §4102.201, concerning Denial,
Suspension, or Revocation of License.
(d) Nothing contained in this section may 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 must 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 must 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, concerning Notification of Certain Disciplinary
Actions Occurring in Other States; Civil Penalty; 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% 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, concerning Service of Process, 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 will revoke or suspend
the license or deny the renewal of the license under Insurance Code §4005.101,
concerning Grounds for License Denial or Disciplinary Action, or Insurance
Code §4102.201, concerning Denial, Suspension, or Revocation
of License.
(m) Each public insurance adjuster must 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 Chapter 4102, concerning Public
Insurance Adjusters.
(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.
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