HB4570 - Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.

  89R5448 DNC-D     By: Dean H.B. No. 4570       A BILL TO BE ENTITLED   AN ACT   relating to an appraisal process for disputed losses under personal   automobile or residential property insurance policies.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle A, Title 10, Insurance Code, is amended   by adding Chapter 1813 to read as follows:   CHAPTER 1813. APPRAISAL OF DISPUTED LOSSES           Sec.   1813.001.     APPLICABILITY OF CHAPTER. (a)   This chapter   applies only to a personal automobile or residential property   insurance policy delivered, issued for delivery, or renewed in this   state by an insurer, including:                 (1)  a capital stock insurance company;                 (2)  a mutual insurance company;                 (3)  a county mutual insurance company;                 (4)  a Lloyd's plan;                 (5)  a reciprocal or interinsurance exchange;                 (6)  a farm mutual insurance company;                 (7)     an eligible surplus lines insurer if this state is   the insured's home state as defined by Section 981.002; and                 (8)  the FAIR Plan Association.           (b)  This chapter does not apply to:                 (1)     an insurance policy delivered, issued for   delivery, or renewed by the Texas Windstorm Insurance Association;   or                 (2)  a commercial insurance policy.           Sec.   1813.002.     RULES. The commissioner shall adopt rules   necessary to implement this chapter, including rules establishing   the period in which an appraisal under a provision required by this   chapter must be completed. In adopting the rules establishing that   period, the commissioner shall:                 (1)     allow flexibility for an adequate investigation of   the claim that is the subject of the appraisal; and                 (2)     consider the time necessary to preserve the   independence of the appraisers.           Sec.   1813.003.     REQUIRED POLICY PROVISION: APPRAISAL   PROCESS. (a)   An insurance policy described by Section 1813.001(a)   must contain an appraisal provision that complies with this   chapter.           (b)     The appraisal provision required by this chapter is   intended to provide a type of dispute resolution process solely to   determine the amount of loss when that amount is in dispute between   the policyholder and the insurer.           Sec.   1813.004.     EFFECT OF APPRAISAL. (a) An appraisal under   the provision required by this chapter does not affect any   applicable policy terms.           (b)     Except for fraud or material mistake relevant to the   appraisal, the amount of loss determined by an appraisal under this   chapter is binding as to the policyholder and the insurer.          SECTION 2.  Chapter 1813, Insurance Code, as added by this   Act, applies only to an insurance policy delivered, issued for   delivery, or renewed on or after January 1, 2026.          SECTION 3.  This Act takes effect September 1, 2025.