Bill Text: TX SB554 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.
Sponsorship: Bipartisan Bill
Status: (Introduced - Dead) 2023-04-18 - Left pending in committee [SB554 Detail]
Download: Texas-2023-SB554-Introduced.html
| 88R2615 CJD-D | ||
| By: Hughes | S.B. No. 554 | |
|
|
||
|
|
||
| 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 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 date a proof of loss | ||
| is filed with the insurer if the insurer and insured do not agree on | ||
| the amount of the loss. | ||
| (b) Each party shall appoint a competent 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, | ||
| the appraisers shall select a qualified umpire. The appraisers and | ||
| umpire shall determine the amount of loss. | ||
| (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 the party's appraiser's fees and expenses. | ||
| (b) If at the end of the appraisal process the amount of loss | ||
| is determined to be more than $1 greater than the amount of the | ||
| insurer's proposed undisputed loss statement, 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 insurer's | ||
| proposed undisputed loss statement is determined to be just, the | ||
| named insured shall refund the insurer the insurer's appraiser's | ||
| 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. | ||
