88R24119 CJD-D
 
  By: Clardy H.B. No. 1437
 
  Substitute the following for H.B. No. 1437:
 
  By:  Oliverson C.S.H.B. No. 1437
 
 
 
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, 2024.
         SECTION 3.  This Act takes effect September 1, 2023.