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A BILL TO BE ENTITLED
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AN ACT
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relating to dispute resolution for certain property insurance |
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claims; authorizing a fee. |
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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 1808 to read as follows: |
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CHAPTER 1808. CLAIMS SETTLEMENT AND DISPUTE RESOLUTION FOR |
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PROPERTY LOSS CLAIMS |
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Sec. 1808.001. DEFINITION. In this chapter, "claim for |
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property losses" means a request for payment under an insurance |
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policy for damage to or loss of real property or tangible personal |
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property alleged to be covered by the policy. |
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Sec. 1808.002. APPLICABILITY OF CHAPTER. (a) Except as |
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provided by Subsection (b), this chapter applies to a claim under an |
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insurance policy that provides insurance coverage against damage to |
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or loss of real property or tangible personal property, including a |
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policy issued by an insurance company, reciprocal or interinsurance |
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exchange, mutual insurance company, capital stock insurance |
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company, county mutual insurance company, Lloyd's plan, or other |
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legal entity authorized to write property insurance in this state. |
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(b) This chapter does not apply to a claim under a policy |
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issued by: |
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(1) the Texas Windstorm Insurance Association; |
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(2) the FAIR Plan Association; or |
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(3) the Texas Automobile Insurance Plan Association. |
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Sec. 1808.003. DISPUTE CONCERNING THE AMOUNT OF ACCEPTED |
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COVERAGE: APPRAISAL REQUIRED. (a) If an insurer accepts coverage |
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for a property loss claim in full and the insured disputes only the |
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amount of loss the insurer will pay for the claim, or if the insurer |
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accepts coverage for a property loss claim in part and the insured |
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disputes the amount of loss the insurer will pay for the accepted |
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portion of the claim, the insured may request from the insurer a |
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detailed summary of the manner in which the insurer determined the |
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amount of loss the insurer will pay. |
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(b) If an insured disputes the amount of loss the insurer |
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will pay for a property loss claim or a portion of a property loss |
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claim, the insured must, before the insured brings an action to |
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resolve the dispute, demand appraisal in accordance with rules |
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adopted by the commissioner for purposes of this section. A demand |
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under this subsection tolls the applicable limitations period for |
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filing the action until the 60th day after the date on which the |
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appraisal decision is made. |
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(c) If an insurer demands appraisal under this section: |
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(1) the appraisal must be conducted as provided by the |
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commissioner by rule; and |
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(2) the insured and the insurer are responsible in |
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equal shares for paying any costs incurred or charged in connection |
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with the appraisal, including a fee charged under Subsection (d). |
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(d) If an insured demands appraisal under this section and |
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the appraiser retained by the insured and the appraiser retained by |
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the insurer are able to agree on an appraisal umpire to participate |
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in the resolution of the dispute, the appraisal umpire is the umpire |
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chosen by the two appraisers. If the appraiser retained by the |
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insured and the appraiser retained by the insurer are unable to |
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agree on an appraisal umpire to participate in the resolution of the |
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dispute, the commissioner shall select an appraisal umpire from a |
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roster of qualified umpires maintained by the department. The |
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department may: |
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(1) require appraisers to register with the department |
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as a condition of being placed on the roster of umpires; and |
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(2) charge a reasonable registration fee to defray the |
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cost incurred by the department in maintaining the roster and the |
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commissioner in selecting an appraisal umpire under this |
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subsection. |
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Sec. 1808.004. DISPUTE CONCERNING THE AMOUNT OF ACCEPTED |
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COVERAGE: ATTORNEY'S FEES. An insured that brings an action to |
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resolve a dispute for which an appraisal is required under Section |
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1808.003 may not recover attorney's fees in an amount that is |
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greater than 40 percent of the amount by which the property loss |
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awarded by the judgment exceeds the property loss awarded by the |
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appraisal decision. |
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Sec. 1808.005. JUDGMENT INTEREST. Notwithstanding Section |
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542.060, interest awarded to an insured under that section in |
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connection with a claim for property losses must be computed using |
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the postjudgment interest rate determined under Section 304.003, |
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Finance Code. |
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Sec. 1808.006. EXCLUSIVITY OF REMEDIES FOR PROPERTY LOSS |
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CLAIM. Notwithstanding Section 541.453 or 542.061 or any other |
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law, an insured may not bring an action in connection with a claim |
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for property losses to obtain a remedy provided by any statute other |
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than this code. |
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SECTION 2. Chapter 1808, Insurance Code, as added by this |
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Act, applies only to a claim under an insurance policy delivered, |
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issued for delivery, or renewed on or after January 1, 2014. A |
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claim under an insurance policy delivered, issued for delivery, or |
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renewed before January 1, 2014, is governed by the law applicable to |
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the claim immediately before the effective date of this Act, and |
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that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |