The Public Insurance Adjuster Law (SB127 of the 78th Legislative Session) became effective on June 11, 2003. Article 21.07-5 Section 3 (a) requires that: “A person may not act as a public insurance adjuster in this state or hold himself or herself out to be a public insurance adjuster in this state, unless the person holds a license or certificate issued by the commissioner under Section 5, 15, or 16 of this article.”

• Examination: There is no provision in statute that would allow Public Insurance Adjusters (PIA) to qualify for license by taking a prelicense course. Such courses may or may not be useful to prepare for the PIA License Qualifying test. Get information about testing, get a license application, or schedule an examination by contacting Prometric. You may do this on the internet, or call them toll free at (866)267-0455.
• Bond Form: A Public Insurance Adjuster must have a $10,000 Public Insurance Adjuster’s bond.
• The statute: Click here to review the statute (Senate Bill 127).
• The rule: Review the Public Insurance Adjuster rule.
• Public insurance adjusters charge fees to help negotiate claim settlements with insurance companies. The public insurance adjuster fee is normally a percentage of the claim settlement and therefore is paid out of settlement monies received from an insurer.
• If a claim is settled within 72 hours of the date the loss is reported to the insurance company, the public adjuster is entitled only to reasonable compensation for time and expenses.
• The public adjuster’s fee may not exceed 10 percent of a claim settlement and must be disclosed in the public adjuster written contract.
• Public adjusters may not give legal advice.
• The public adjuster may not participate, either directly or indirectly, in the reconstruction or repair of damaged property that is the subject of a claim adjusted by the public adjuster.