The Texas Department of Insurance (TDI) has issued a bulletin to insurance companies, insurance adjusters and roofers, reminding them that a roofing contractor who is also an insurance adjuster cannot perform both duties on the same property.
House Bill (HB) 1183, enacted by the 83rd Texas Legislature and effective on Sept. 1, 2013, established prohibited conduct of insurance adjusters, public insurance adjusters and roofing contractors under the Insurance Code.
“Recent legislation protects consumers from a clear conflict of interest. A licensed adjuster cannot serve as both the adjuster and roofing contractor on the same project and vice versa,” said Commissioner of Insurance Julia Rathgeber. “Our goal in issuing this bulletin is to educate both the industry and consumers and ensure compliance with the law.”
The law prohibits licensed adjusters from adjusting a loss related to a roofing claim if the adjuster is a roofing contractor, involved in providing roofing services, or is a controlling person in a roofing-related business.
Likewise, roofing contractors are prohibited from acting as insurance adjusters or advertising to adjust claims for any property for which the contractor may provide roofing services, regardless of whether the contractor holds an adjuster license.
Source: TDI
Topics Texas Contractors
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