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A BILL TO BE ENTITLED
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AN ACT
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relating to an appraisal process for disputed losses under personal |
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automobile or residential property insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 10, Insurance Code, is amended |
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by adding Chapter 1813 to read as follows: |
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CHAPTER 1813. APPRAISAL OF DISPUTED LOSSES |
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Sec. 1813.001. APPLICABILITY OF CHAPTER. (a) This chapter |
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applies only to a personal automobile or residential property |
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insurance policy delivered, issued for delivery, or renewed in this |
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state by an insurer, including: |
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(1) a capital stock insurance company; |
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(2) a mutual insurance company; |
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(3) a county mutual insurance company; |
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(4) a Lloyd's plan; |
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(5) a reciprocal or interinsurance exchange; |
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(6) a farm mutual insurance company; |
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(7) an eligible surplus lines insurer if this state is |
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the insured's home state as defined by Section 981.002; and |
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(8) the FAIR Plan Association. |
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(b) This chapter does not apply to: |
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(1) an insurance policy delivered, issued for |
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delivery, or renewed by the Texas Windstorm Insurance Association; |
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or |
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(2) a commercial insurance policy. |
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Sec. 1813.002. RULES. The commissioner shall adopt rules |
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necessary to implement this chapter, including rules establishing |
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the period in which an appraisal under a provision required by this |
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chapter must be completed. In adopting the rules establishing that |
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period, the commissioner shall: |
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(1) allow flexibility for an adequate investigation of |
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the claim that is the subject of the appraisal; and |
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(2) consider the time necessary to preserve the |
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independence of the appraisers. |
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Sec. 1813.003. REQUIRED POLICY PROVISION: APPRAISAL |
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PROCESS. (a) An insurance policy described by Section 1813.001(a) |
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must contain an appraisal provision that complies with this |
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chapter. |
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(b) The appraisal provision required by this chapter is |
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intended to provide a type of dispute resolution process solely to |
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determine the amount of loss when that amount is in dispute between |
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the policyholder and the insurer. |
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Sec. 1813.004. EFFECT OF APPRAISAL. (a) An appraisal under |
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the provision required by this chapter does not affect any |
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applicable policy terms. |
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(b) Except for fraud or material mistake relevant to the |
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appraisal, the amount of loss determined by an appraisal under this |
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chapter is binding as to the policyholder and the insurer. |
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SECTION 2. Chapter 1813, Insurance Code, as added by this |
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Act, applies only to an insurance policy delivered, issued for |
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delivery, or renewed on or after January 1, 2026. |
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SECTION 3. This Act takes effect September 1, 2025. |