HB4569 - Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.

  89R2032 CJD-D     By: Dean H.B. No. 4569       A BILL TO BE ENTITLED   AN ACT   relating to an appraisal procedure for disputed losses under   personal automobile insurance policies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 1952, Insurance Code, is amended by   adding Subchapter I to read as follows:   SUBCHAPTER I. APPRAISAL PROCEDURES           Sec.   1952.401.     APPLICABILITY OF SUBCHAPTER. This   subchapter applies to an insurer writing personal automobile   insurance in this state, including an insurance company,   corporation, reciprocal or interinsurance exchange, mutual   insurance company, capital stock company, association, county   mutual insurance company, Lloyd's plan, and any other insurer.           Sec.   1952.402.     REQUIRED POLICY PROVISION: APPRAISAL   PROCEDURE.   A personal automobile insurance policy must contain an   appraisal procedure that complies with this subchapter.           Sec.   1952.403.     APPRAISAL DEMAND; APPOINTMENT OF   APPRAISERS.   (a)   An insurer or the named insured may demand an   appraisal not later than the 90th day after the insurer accepts   liability and issues the insurer's undisputed liability offer.           (b)     Each party shall appoint an unbiased appraiser and   notify the other party of that appraiser's identity not later than   the 15th day after the date an appraisal is demanded.           Sec.   1952.404.     DETERMINATION OF LOSS. (a)   The appraisers   appointed by the parties shall determine the amount of loss.           (b)     If the appraisers fail to agree on the amount of loss   after the 30th day after the date all appraisers are appointed, the   appraisers shall select an unbiased umpire.   The appraisers and   umpire shall determine the amount of loss not later than the 30th   day after the date the umpire is selected.           (c)     The determination of the amount of loss agreed to by   both appraisers or by one appraiser and the umpire is binding on   both parties.           Sec.   1952.405.     COURT SELECTION OF UMPIRE. If the two   appraisers are unable to agree on an umpire on or before the 15th   day after the date the appraisers determine an umpire is needed, the   insurer or the named insured may request that a court in the county   in which the named insured resides select the umpire.           Sec.   1952.406.     APPRAISAL FEES AND EXPENSES. (a)   Each party   is responsible for its own appraiser's fees and expenses.           (b)     If at the end of the appraisal process the amount of loss   is determined to be more than 10 percent greater than the amount of   the insurer's last offer, the insurer shall refund the named   insured's reasonable out-of-pocket expenses for the insured's   appraiser's fees and expenses.           (c)     If at the end of the appraisal process the appraisal   award is more than 10 percent less than the amount the insurer last   offered, the named insured shall pay the insurer's appraiser's   reasonable fees and expenses.           (d)     All other appraisal expenses, including umpire   expenses, are shared evenly between the parties.           Sec.   1952.407.     NO RIGHTS WAIVED. An insurer and a named   insured do not waive any rights under the policy that is the subject   of the appraisal by demanding an appraisal.          SECTION 2.  The change in law made by this Act applies only   to an insurance policy that is delivered, issued for delivery, or   renewed on or after January 1, 2026.          SECTION 3.  This Act takes effect September 1, 2025.