| 1 | 1 | | 89R14682 SCL-F |
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| 2 | 2 | | By: Morgan H.B. No. 4074 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to licensing requirements for insurance umpires and |
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| 10 | 10 | | appraisers; authorizing fees; providing an administrative penalty. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subtitle D, Title 13, Insurance Code, is amended |
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| 13 | 13 | | by adding Chapter 4156 to read as follows: |
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| 14 | 14 | | CHAPTER 4156. UMPIRES AND APPRAISERS |
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| 15 | 15 | | Sec. 4156.001. DEFINITIONS. In this chapter: |
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| 16 | 16 | | (1) "Appraiser" means an individual selected by an |
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| 17 | 17 | | insurer or insured to assess the value of damages or loss in an |
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| 18 | 18 | | insurance dispute. |
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| 19 | 19 | | (2) "Umpire" means a neutral third-party professional |
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| 20 | 20 | | selected to resolve disputes between appraisers in an insurance |
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| 21 | 21 | | appraisal process. |
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| 22 | 22 | | Sec. 4156.002. RULES. The commissioner may adopt rules to |
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| 23 | 23 | | implement this chapter. |
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| 24 | 24 | | Sec. 4156.003. LICENSING REQUIREMENTS. (a) An individual |
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| 25 | 25 | | may not serve as an umpire or appraiser unless the individual holds |
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| 26 | 26 | | a valid license issued by the department. |
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| 27 | 27 | | (b) The department shall issue an umpire or appraiser |
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| 28 | 28 | | license to an applicant who: |
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| 29 | 29 | | (1) is at least 18 years old and a United States |
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| 30 | 30 | | citizen or legal resident authorized to work in the United States; |
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| 31 | 31 | | (2) completes a 40-hour pre-licensing course approved |
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| 32 | 32 | | by the commissioner; |
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| 33 | 33 | | (3) successfully passes a state licensing examination |
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| 34 | 34 | | approved by the commissioner; |
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| 35 | 35 | | (4) submits to a fingerprint-based criminal |
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| 36 | 36 | | background check; |
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| 37 | 37 | | (5) files a completed application and pays the |
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| 38 | 38 | | required fees to the department not later than the first |
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| 39 | 39 | | anniversary of the date the applicant passes the examination; and |
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| 40 | 40 | | (6) maintains a surety bond in an amount set by the |
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| 41 | 41 | | commissioner that is not less than $10,000. |
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| 42 | 42 | | Sec. 4156.004. CONTINUING EDUCATION REQUIREMENTS. (a) To |
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| 43 | 43 | | maintain a license issued under this chapter, an umpire or |
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| 44 | 44 | | appraiser must complete 24 hours of continuing education every two |
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| 45 | 45 | | years as required by the commissioner. |
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| 46 | 46 | | (b) The continuing education must include: |
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| 47 | 47 | | (1) ethics training of at least three hours; |
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| 48 | 48 | | (2) insurance policy interpretation and appraisal |
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| 49 | 49 | | processes; |
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| 50 | 50 | | (3) alternative dispute resolution; and |
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| 51 | 51 | | (4) any other subject as determined by the |
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| 52 | 52 | | commissioner. |
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| 53 | 53 | | (c) At least 12 of the 24 continuing education hours |
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| 54 | 54 | | required under this section must be completed in a classroom or |
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| 55 | 55 | | equivalent setting in accordance with commissioner rule. |
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| 56 | 56 | | Sec. 4156.005. LICENSE RENEWAL. (a) A license issued under |
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| 57 | 57 | | this chapter is valid for two years and must be renewed before the |
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| 58 | 58 | | last day of the license holder's birth month. |
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| 59 | 59 | | (b) An applicant for renewal must: |
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| 60 | 60 | | (1) demonstrate compliance with continuing education |
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| 61 | 61 | | requirements; and |
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| 62 | 62 | | (2) pay the renewal fee as set by the commissioner. |
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| 63 | 63 | | Sec. 4156.006. ENFORCEMENT. (a) The department may |
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| 64 | 64 | | investigate complaints, conduct audits, and enforce compliance |
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| 65 | 65 | | with this chapter. |
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| 66 | 66 | | (b) Not earlier than the 90th day after the last day of a |
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| 67 | 67 | | licensing period, the commissioner may impose an administrative |
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| 68 | 68 | | penalty of $50 per deficient hour for failure to complete the |
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| 69 | 69 | | continuing education requirements described by Section 4156.004. |
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| 70 | 70 | | (c) The commissioner may impose an administrative penalty |
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| 71 | 71 | | under Chapter 84 on a person who acts as an umpire or appraiser |
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| 72 | 72 | | without a valid license in an amount that does not exceed $4,500 per |
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| 73 | 73 | | violation in addition to any other enforcement action authorized by |
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| 74 | 74 | | this code that the commissioner considers necessary. |
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| 75 | 75 | | SECTION 2. (a) Except as provided by Subsection (b) of this |
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| 76 | 76 | | section, an umpire or appraiser, as those terms are defined by |
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| 77 | 77 | | Section 4156.001, Insurance Code, as added by this Act, who began |
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| 78 | 78 | | operating before the effective date of this Act is not required to |
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| 79 | 79 | | comply with the licensing, bonding, and educational requirements |
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| 80 | 80 | | prescribed by Chapter 4156, Insurance Code, as added by this Act, |
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| 81 | 81 | | until September 1, 2027. |
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| 82 | 82 | | (b) As soon as practicable after the effective date of this |
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| 83 | 83 | | Act, the commissioner of insurance shall establish temporary |
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| 84 | 84 | | licensing procedures for an umpire or appraiser described by |
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| 85 | 85 | | Subsection (a) of this section that apply to the umpire or appraiser |
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| 86 | 86 | | until September 1, 2027. |
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| 87 | 87 | | SECTION 3. This Act takes effect September 1, 2025. |
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