Texas Insurance Law, Rules, and Licensing Requirements
Who regulates whom
Public insurance adjusters in Texas are licensed and regulated by the Texas Department of Insurance (TDI) under Insurance Code Chapter 4102. A license is required before a person may, for compensation, negotiate, adjust, or settle a first-party claim on behalf of an insured. The licensing path generally runs: application, fingerprint-based background check, qualifying exam, and a surety bond maintained in the amount set by TDI rule. Licenses renew on a two-year cycle with continuing education (including ethics hours) - confirm current hour counts in TDI rules rather than memorizing a number from an old study sheet. Learn the three roles: a company adjuster is a salaried insurer employee, an independent adjuster is an contractor paid by the insurer, and a public adjuster represents only the insured.
Contract, fee, and conduct rules
Every engagement requires a written contract signed by the insured that states the fee and the insured's right to rescind within the statutory window (72 hours is the commonly tested figure). Fees on claims arising from a governor-declared disaster are capped by statute (currently 10% of the settlement) - verify the current figure. Solicitation is restricted, particularly at loss scenes and during declared disasters.
The timeline toolkit
28 TAC §21.203: acknowledge the claim within 15 days; accept or deny within 15 business days after receiving all requested information. Insurance Code Chapter 542: pay within 60 days of receiving all items or face an 18% penalty plus attorney fees. Chapter 542A: 61-day pre-suit notice for liability claims.
Traps
Mixing up the 15-day acknowledgment with the 15-business-day decision; assuming the surety bond protects the insured (it does not - it protects the public); and treating TDI guidance letters as statutes.
Rule of thumb
When a question asks about a deadline and the stem says "business days," it is almost always the §21.203 decision clock; a plain "days" reference usually points to Chapter 542's 60-day payment duty.