Texas Senate Bill SB1706

Texas 2021 - 87th Regular

Caption

Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.

Impact

The implementation of SB1706 would impact the existing insurance regulations, particularly those related to claim disputes. It establishes a framework for insurers and insureds to follow when disagreements arise regarding the amount of a loss. With the introduction of a formal appraisal process, SB1706 seeks to reduce litigation related to loss valuations, promoting more efficient settlements and ultimately benefiting policyholders who may face prolonged disputes. Furthermore, the bill ensures equitable sharing of appraisal costs, which can alleviate financial burdens on the insured who might otherwise struggle with upfront expenses related to the appraisal process.

Summary

SB1706 introduces an update to the appraisal process for disputed losses specifically under personal automobile insurance policies in Texas. This bill mandates that all personal automobile insurance policies must include an appraisal procedure that aligns with the defined subchapter, ensuring clarity and consistency in how disputes over loss valuations are managed. By defining clear steps for appraisal demands and procedures, the bill aims to streamline the resolution of disputes between insurance providers and policyholders.

Contention

While SB1706 aims to create a more consistent and predictable appraisal process, some aspects might raise concerns among stakeholders. Insurers may worry about the potential for increased costs associated with the obligatory appraisal procedures, while insured individuals may seek additional protections or procedures to ensure the appraisals are conducted fairly. The requirement for an umpire when there is a disagreement could lead to concerns about impartiality and the qualifications of selected umpires, which could become a point of contention both in the legislative discussion and in practice.