Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.
Impact
The implementation of this bill will alter the way automobile insurance disputes are handled in Texas. Insurers will be required to adhere to this standardized appraisal process, which is designed to enhance clarity and efficiency in resolving disagreements over loss claims. This is particularly relevant for consumers who may have faced ambiguities in current practices, as the bill provides a legally binding determination process that is expected to reduce lengthy disputes and courtroom battles.
Summary
SB369 introduces a new appraisal procedure for disputed losses under personal automobile insurance policies, aimed at providing a clear framework for both insurers and policyholders. The bill stipulates that an insurance policy must contain an appraisal procedure that complies with the new subchapter added to the Insurance Code. This ensures that any disputes regarding the amount of loss can be settled through a structured process involving appointed appraisers and a potential umpire, should the appraisers be unable to agree on the loss amount.
Contention
Notable points of contention surrounding the bill include concerns about the fair appointment of appraisers and umpires. Critics may argue that without adequate regulation, there is potential for bias in the selection process, which could disadvantage insured parties. Moreover, the requirement for policyholders to cover their own appraiser's fees—unless certain conditions align—may be seen as a financial burden, particularly if disputes are frequent or if insured values are considerable. This raises questions about equity and access to justice for consumers seeking resolution.
Texas Constitutional Statutes Affected
Insurance Code
Chapter 1952. Policy Provisions And Forms Forautomobile Insurance
Relating to the transfer and statutory novation of insurance policies from a transferring insurer to an assuming insurer through an insurance business transfer plan; authorizing fees.
Relating to nonrenewal of certain private passenger automobile insurance policies for the insured's failure to cooperate in a third-party liability claim or action.