Texas § IN.4102.158 - CONFLICTS OF INTEREST PROHIBITED

§ IN.4102.158. CONFLICTS OF INTEREST PROHIBITED

CONFLICTS OF INTEREST PROHIBITED. (a) A license holder may not: (1) participate directly or indirectly in the reconstruction, repair, or restoration of damaged property that is the subject of a claim adjusted by the license holder; or (2) engage in any other activities that may reasonably be construed as presenting a conflict of interest, including soliciting or accepting any remuneration from, having a financial interest in, or deriving any direct or indirect financial benefit from, any salvage firm, repair firm, construction firm, or other firm that obtains business in connection with any claim the license holder has a contract or agreement to adjust. (b) A license holder may not, without the knowledge and consent of the insured in writing, acquire an interest in salvaged property that is the subject of a claim adjusted by the license holder. (c) A license holder may not represent an insured on a claim or charge a fee to an insured while representing the insurance carrier against which the claim is made. (d) A license holder may not directly or indirectly solicit, as described by Chapter 38 , Penal Code, employment for an attorney or enter into a contract with an insured for the primary purpose of referring an insured to an attorney and without the intent to actually perform the services customarily provided by a licensed public insurance adjuster. This section may not be construed to prohibit a license holder from recommending a particular attorney to an insured. (e) A license holder may not act on behalf of an attorney in having an insured sign an attorney representation agreement. (f) A license holder must become familiar with and at all times act in conformance with the criminal barratry statute set forth in Section 38.12 , Penal Code. Added by Acts 2005, 79th Leg., Ch. 728 (H.B. 2018 ), Sec. 11.082(a), eff. September 1, 2005. Amended by: Acts 2015, 84th Leg., R.S., Ch. 1178 (S.B. 1060 ), Sec. 5, eff. September 1, 2015.