83R5744 AJA-D
By: Taylor H.B. No. 2125
A BILL TO BE ENTITLED
AN ACT
relating to dispute resolution for certain property insurance
claims; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 10, Insurance Code, is amended
by adding Chapter 1808 to read as follows:
CHAPTER 1808. CLAIMS SETTLEMENT AND DISPUTE RESOLUTION FOR
PROPERTY LOSS CLAIMS
Sec. 1808.001. DEFINITION. In this chapter, "claim for
property losses" means a request for payment under an insurance
policy for damage to or loss of real property or tangible personal
property alleged to be covered by the policy.
Sec. 1808.002. APPLICABILITY OF CHAPTER. (a) Except as
provided by Subsection (b), this chapter applies to a claim under an
insurance policy that provides insurance coverage against damage to
or loss of real property or tangible personal property, including a
policy issued by an insurance company, reciprocal or interinsurance
exchange, mutual insurance company, capital stock insurance
company, county mutual insurance company, Lloyd's plan, or other
legal entity authorized to write property insurance in this state.
(b) This chapter does not apply to a claim under a policy
issued by:
(1) the Texas Windstorm Insurance Association;
(2) the FAIR Plan Association; or
(3) the Texas Automobile Insurance Plan Association.
Sec. 1808.003. DISPUTE CONCERNING THE AMOUNT OF ACCEPTED
COVERAGE: APPRAISAL REQUIRED. (a) If an insurer accepts coverage
for a property loss claim in full and the insured disputes only the
amount of loss the insurer will pay for the claim, or if the insurer
accepts coverage for a property loss claim in part and the insured
disputes the amount of loss the insurer will pay for the accepted
portion of the claim, the insured may request from the insurer a
detailed summary of the manner in which the insurer determined the
amount of loss the insurer will pay.
(b) If an insured disputes the amount of loss the insurer
will pay for a property loss claim or a portion of a property loss
claim, the insured must, before the insured brings an action to
resolve the dispute, demand appraisal in accordance with rules
adopted by the commissioner for purposes of this section. A demand
under this subsection tolls the applicable limitations period for
filing the action until the 60th day after the date on which the
appraisal decision is made.
(c) If an insurer demands appraisal under this section:
(1) the appraisal must be conducted as provided by the
commissioner by rule; and
(2) the insured and the insurer are responsible in
equal shares for paying any costs incurred or charged in connection
with the appraisal, including a fee charged under Subsection (d).
(d) If an insured demands appraisal under this section and
the appraiser retained by the insured and the appraiser retained by
the insurer are able to agree on an appraisal umpire to participate
in the resolution of the dispute, the appraisal umpire is the umpire
chosen by the two appraisers. If the appraiser retained by the
insured and the appraiser retained by the insurer are unable to
agree on an appraisal umpire to participate in the resolution of the
dispute, the commissioner shall select an appraisal umpire from a
roster of qualified umpires maintained by the department. The
department may:
(1) require appraisers to register with the department
as a condition of being placed on the roster of umpires; and
(2) charge a reasonable registration fee to defray the
cost incurred by the department in maintaining the roster and the
commissioner in selecting an appraisal umpire under this
subsection.
Sec. 1808.004. DISPUTE CONCERNING THE AMOUNT OF ACCEPTED
COVERAGE: ATTORNEY'S FEES. An insured that brings an action to
resolve a dispute for which an appraisal is required under Section
1808.003 may not recover attorney's fees in an amount that is
greater than 40 percent of the amount by which the property loss
awarded by the judgment exceeds the property loss awarded by the
appraisal decision.
Sec. 1808.005. JUDGMENT INTEREST. Notwithstanding Section
542.060, interest awarded to an insured under that section in
connection with a claim for property losses must be computed using
the postjudgment interest rate determined under Section 304.003,
Finance Code.
Sec. 1808.006. EXCLUSIVITY OF REMEDIES FOR PROPERTY LOSS
CLAIM. Notwithstanding Section 541.453 or 542.061 or any other
law, an insured may not bring an action in connection with a claim
for property losses to obtain a remedy provided by any statute other
than this code.
SECTION 2. Chapter 1808, Insurance Code, as added by this
Act, applies only to a claim under an insurance policy delivered,
issued for delivery, or renewed on or after January 1, 2014. A
claim under an insurance policy delivered, issued for delivery, or
renewed before January 1, 2014, is governed by the law applicable to
the claim immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.