Property insurance; authorize appraisal panel to determine value of property and amount of loss, including issues of causation.
Impact
The inclusion of this appraisal provision in property insurance policies is aimed at streamlining claims processes and ensuring a fair resolution when disputes arise over property values and losses. By clearly delineating the appraisal process, this bill seeks to reduce the number of legal disputes in court concerning property insurance claims, potentially benefiting both insurers and policyholders by providing a more efficient resolution mechanism.
Summary
House Bill 9 is a proposed legislation that mandates the inclusion of an appraisal provision in all property insurance policies issued or delivered within Mississippi. This provision allows either the insurer or the policyholder to demand an appraisal of the loss if there is a disagreement regarding the amount of loss or the value of the property. The process requires both parties to choose a competent appraiser who will work together to select an umpire if they cannot agree, thus establishing a structured process for resolving disputes related to property insurance claims.
Contention
Notable points of contention could arise regarding the definition of 'competent appraisers' and what qualifies as a binding decision by the appraisal panel. Critics of the bill may argue about the fairness of the appraisal process, especially regarding the selection of appraisers and umpires, as well as concerns about whether this process could favor insurers over policyholders. Moreover, while the bill reserves liability issues for the courts, there may be debates regarding the implications of the appraisal decision on future legal claims and how that might affect policyholder rights.
Mississippi Real Estate Appraiser Licensing and Certification Board; separate from Mississippi Real Estate Commission and from Mississippi Real Estate Appraisal Board.