89R14682 SCL-F
By: Morgan H.B. No. 4074
A BILL TO BE ENTITLED
AN ACT
relating to licensing requirements for insurance umpires and
appraisers; authorizing fees; providing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle D, Title 13, Insurance Code, is amended
by adding Chapter 4156 to read as follows:
CHAPTER 4156. UMPIRES AND APPRAISERS
Sec. 4156.001. DEFINITIONS. In this chapter:
(1) "Appraiser" means an individual selected by an
insurer or insured to assess the value of damages or loss in an
insurance dispute.
(2) "Umpire" means a neutral third-party professional
selected to resolve disputes between appraisers in an insurance
appraisal process.
Sec. 4156.002. RULES. The commissioner may adopt rules to
implement this chapter.
Sec. 4156.003. LICENSING REQUIREMENTS. (a) An individual
may not serve as an umpire or appraiser unless the individual holds
a valid license issued by the department.
(b) The department shall issue an umpire or appraiser
license to an applicant who:
(1) is at least 18 years old and a United States
citizen or legal resident authorized to work in the United States;
(2) completes a 40-hour pre-licensing course approved
by the commissioner;
(3) successfully passes a state licensing examination
approved by the commissioner;
(4) submits to a fingerprint-based criminal
background check;
(5) files a completed application and pays the
required fees to the department not later than the first
anniversary of the date the applicant passes the examination; and
(6) maintains a surety bond in an amount set by the
commissioner that is not less than $10,000.
Sec. 4156.004. CONTINUING EDUCATION REQUIREMENTS. (a) To
maintain a license issued under this chapter, an umpire or
appraiser must complete 24 hours of continuing education every two
years as required by the commissioner.
(b) The continuing education must include:
(1) ethics training of at least three hours;
(2) insurance policy interpretation and appraisal
processes;
(3) alternative dispute resolution; and
(4) any other subject as determined by the
commissioner.
(c) At least 12 of the 24 continuing education hours
required under this section must be completed in a classroom or
equivalent setting in accordance with commissioner rule.
Sec. 4156.005. LICENSE RENEWAL. (a) A license issued under
this chapter is valid for two years and must be renewed before the
last day of the license holder's birth month.
(b) An applicant for renewal must:
(1) demonstrate compliance with continuing education
requirements; and
(2) pay the renewal fee as set by the commissioner.
Sec. 4156.006. ENFORCEMENT. (a) The department may
investigate complaints, conduct audits, and enforce compliance
with this chapter.
(b) Not earlier than the 90th day after the last day of a
licensing period, the commissioner may impose an administrative
penalty of $50 per deficient hour for failure to complete the
continuing education requirements described by Section 4156.004.
(c) The commissioner may impose an administrative penalty
under Chapter 84 on a person who acts as an umpire or appraiser
without a valid license in an amount that does not exceed $4,500 per
violation in addition to any other enforcement action authorized by
this code that the commissioner considers necessary.
SECTION 2. (a) Except as provided by Subsection (b) of this
section, an umpire or appraiser, as those terms are defined by
Section 4156.001, Insurance Code, as added by this Act, who began
operating before the effective date of this Act is not required to
comply with the licensing, bonding, and educational requirements
prescribed by Chapter 4156, Insurance Code, as added by this Act,
until September 1, 2027.
(b) As soon as practicable after the effective date of this
Act, the commissioner of insurance shall establish temporary
licensing procedures for an umpire or appraiser described by
Subsection (a) of this section that apply to the umpire or appraiser
until September 1, 2027.
SECTION 3. This Act takes effect September 1, 2025.