13.2 Solicitation, Contractor Conflicts & Referral Bans

Solicitation and Conflict Boundaries

Consumers immediately after fire, hail, or hurricane can be vulnerable. Chapter 4102 regulates when and how adjusters approach them and removes incentives to steer repair or professional work.

Solicitation hours

Section 4102.152 permits solicitation about a loss or claim only:

• 9 a.m. to 9 p.m. on weekdays and Saturdays;
• noon to 9 p.m. on Sundays.

The restriction covers in-person, telephone, and other solicitation methods. It does not prohibit accepting an insured-initiated phone call or personal visit during otherwise prohibited hours. The exception is for responding to the consumer, not disguising outbound solicitation as a return call.

Active natural disaster

Section 4102.151 prohibits soliciting or attempting to solicit employment during the progress of a loss-producing natural disaster occurrence. This is distinct from ordinary time-of-day limits. When a storm is actively producing loss, the adjuster does not canvas affected residents.

After the active occurrence, time and conduct rules still apply. Do not invent a fixed statewide waiting period not stated in the statute.

Advertising identification

Advertisements must display the license holder’s name, address, and license number as they appear in TDI records. Misrepresentation to obtain a contract is prohibited. The adjuster cannot imply being a government instrumentality or use an unauthorized name.

Repair and restoration conflict

Section 4102.158 prohibits the license holder from participating directly or indirectly in reconstruction, repair, or restoration of property that is the subject of a claim the adjuster handles. It also prohibits remuneration, financial interest, or direct or indirect benefit from a salvage, repair, construction, or other firm obtaining business connected with that claim.

The rule covers hidden arrangements:

• an adjuster-owned roofing affiliate;
• a spouse’s contractor paying marketing fees;
• free office space from a restoration firm for referrals;
• profit participation in salvage;
• a “consulting” payment tied to repair award.

Disclosure alone does not cure an act the statute prohibits.

Contractor prohibition

Section 4102.163 separately provides that a contractor may not act as public adjuster or advertise to adjust claims for property on which the contractor provides or may provide contracting services, even if the contractor has a public-adjuster license or power of attorney. A roofing proposal cannot be relabeled claim negotiation.

Referral payments

Section 4102.164 prohibits a licensed public adjuster from accepting any fee, commission, or valuable consideration, regardless of form or amount, for referring an insured to a third party, including an attorney, appraiser, umpire, construction company, contractor, or salvage company.

The adjuster can provide neutral information or several qualified names without compensation. Document that the client chooses independently.

Other prohibited inducements

Chapter 4102 also prohibits advancing money to a potential client or insured and paying a person for referring an insured, except payment for legitimate services actually performed under the statute’s terms. A waived or rebated fee used deceptively can raise additional issues.

Scenario

At 8 a.m. Sunday after a hailstorm has passed, an adjuster texts homeowners offering free roof inspections through a sister roofing company. Multiple rules are implicated: solicitation is before noon; the contractor relationship creates a financial conflict; and the offer can misrepresent distinct adjusting and repair roles. If a homeowner independently calls at 8 a.m., the adjuster may accept the contact but still cannot steer the claim to a financially connected contractor.

Exam grid

The safest ethical principle is independence: compensation comes only from the approved insured contract, within the statutory cap.

Screen contact and financial relationships before solicitation

Texas limits direct solicitation to 9 a.m.–9 p.m. on weekdays and Saturdays and noon–9 p.m. on Sundays, subject to the insured-initiated-contact provision. Chapter 4102 also bars solicitation during an active natural disaster. Record who initiated contact, when, where, and how. A mass advertisement and a direct in-person or telephone approach may raise different provisions, but neither may be misleading.

Before accepting a file, list every relationship with roofers, restoration firms, mitigation vendors, engineers, attorneys, salvage buyers, lenders, and lead generators. A public adjuster cannot participate directly or indirectly in repair or restoration of the property being adjusted, hold a prohibited financial interest, or receive an improper referral benefit. A contractor cannot serve both roles on the same property merely by using two companies. Gifts, gift cards, reciprocal leads, or disguised marketing payments can constitute consideration.

Advertisements should identify the public adjuster accurately with required name, address, and license information. During catastrophe response, avoid uniforms, vehicle markings, or language implying government or insurer affiliation. Conflict screening protects client choice: recommendations should rest on competence and need, not on the adjuster’s financial return.