Texas 2023 - 88th Regular

Texas Senate Bill SB554 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	88R2615 CJD-D
2	2	By: Hughes S.B. No. 554
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to an appraisal procedure for disputed losses under
8	8	personal automobile insurance policies.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 1952, Insurance Code, is amended by
11	11	adding Subchapter I to read as follows:
12	12	SUBCHAPTER I. APPRAISAL PROCEDURES
13	13	Sec. 1952.401. APPLICABILITY OF SUBCHAPTER. This
14	14	subchapter applies to an insurer writing automobile insurance in
15	15	this state, including an insurance company, corporation,
16	16	reciprocal or interinsurance exchange, mutual insurance company,
17	17	capital stock company, association, county mutual insurance
18	18	company, Lloyd's plan, and any other insurer.
19	19	Sec. 1952.402. REQUIRED POLICY PROVISION: APPRAISAL
20	20	PROCEDURE. A personal automobile insurance policy must contain an
21	21	appraisal procedure that complies with this subchapter.
22	22	Sec. 1952.403. APPRAISAL DEMAND; APPOINTMENT OF
23	23	APPRAISERS. (a) An insurer or the named insured may demand an
24	24	appraisal not later than the 90th day after the date a proof of loss
25	25	is filed with the insurer if the insurer and insured do not agree on
26	26	the amount of the loss.
27	27	(b) Each party shall appoint a competent appraiser and
28	28	notify the other party of that appraiser's identity not later than
29	29	the 15th day after the date an appraisal is demanded.
30	30	Sec. 1952.404. DETERMINATION OF LOSS. (a) The appraisers
31	31	appointed by the parties shall determine the amount of loss.
32	32	(b) If the appraisers fail to agree on the amount of loss,
33	33	the appraisers shall select a qualified umpire. The appraisers and
34	34	umpire shall determine the amount of loss.
35	35	(c) The determination of the amount of loss agreed to by
36	36	both appraisers or by one appraiser and the umpire is binding on
37	37	both parties.
38	38	Sec. 1952.405. COURT SELECTION OF UMPIRE. If the two
39	39	appraisers are unable to agree on an umpire on or before the 15th
40	40	day after the date the appraisers determine an umpire is needed, the
41	41	insurer or the named insured may request that a court in the county
42	42	in which the named insured resides select the umpire.
43	43	Sec. 1952.406. APPRAISAL FEES AND EXPENSES. (a) Each party
44	44	is responsible for the party's appraiser's fees and expenses.
45	45	(b) If at the end of the appraisal process the amount of loss
46	46	is determined to be more than $1 greater than the amount of the
47	47	insurer's proposed undisputed loss statement, the insurer shall
48	48	refund the named insured's reasonable out-of-pocket expenses for
49	49	the insured's appraiser's fees and expenses.
50	50	(c) If at the end of the appraisal process the insurer's
51	51	proposed undisputed loss statement is determined to be just, the
52	52	named insured shall refund the insurer the insurer's appraiser's
53	53	fees and expenses.
54	54	(d) All other appraisal expenses, including umpire
55	55	expenses, are shared evenly between the parties.
56	56	Sec. 1952.407. NO RIGHTS WAIVED. An insurer and a named
57	57	insured do not waive any rights under the policy that is the subject
58	58	of the appraisal by demanding an appraisal.
59	59	SECTION 2. The change in law made by this Act applies only
60	60	to an insurance policy that is delivered, issued for delivery, or
61	61	renewed on or after January 1, 2024.
62	62	SECTION 3. This Act takes effect September 1, 2023.