Texas 2025 - 89th Regular

Texas House Bill HB4569 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R2032 CJD-D
2	2	By: Dean H.B. No. 4569
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an appraisal procedure for disputed losses under
10	10	personal automobile insurance policies.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 1952, Insurance Code, is amended by
13	13	adding Subchapter I to read as follows:
14	14	SUBCHAPTER I. APPRAISAL PROCEDURES
15	15	Sec. 1952.401. APPLICABILITY OF SUBCHAPTER. This
16	16	subchapter applies to an insurer writing personal automobile
17	17	insurance in this state, including an insurance company,
18	18	corporation, reciprocal or interinsurance exchange, mutual
19	19	insurance company, capital stock company, association, county
20	20	mutual insurance company, Lloyd's plan, and any other insurer.
21	21	Sec. 1952.402. REQUIRED POLICY PROVISION: APPRAISAL
22	22	PROCEDURE. A personal automobile insurance policy must contain an
23	23	appraisal procedure that complies with this subchapter.
24	24	Sec. 1952.403. APPRAISAL DEMAND; APPOINTMENT OF
25	25	APPRAISERS. (a) An insurer or the named insured may demand an
26	26	appraisal not later than the 90th day after the insurer accepts
27	27	liability and issues the insurer's undisputed liability offer.
28	28	(b) Each party shall appoint an unbiased appraiser and
29	29	notify the other party of that appraiser's identity not later than
30	30	the 15th day after the date an appraisal is demanded.
31	31	Sec. 1952.404. DETERMINATION OF LOSS. (a) The appraisers
32	32	appointed by the parties shall determine the amount of loss.
33	33	(b) If the appraisers fail to agree on the amount of loss
34	34	after the 30th day after the date all appraisers are appointed, the
35	35	appraisers shall select an unbiased umpire. The appraisers and
36	36	umpire shall determine the amount of loss not later than the 30th
37	37	day after the date the umpire is selected.
38	38	(c) The determination of the amount of loss agreed to by
39	39	both appraisers or by one appraiser and the umpire is binding on
40	40	both parties.
41	41	Sec. 1952.405. COURT SELECTION OF UMPIRE. If the two
42	42	appraisers are unable to agree on an umpire on or before the 15th
43	43	day after the date the appraisers determine an umpire is needed, the
44	44	insurer or the named insured may request that a court in the county
45	45	in which the named insured resides select the umpire.
46	46	Sec. 1952.406. APPRAISAL FEES AND EXPENSES. (a) Each party
47	47	is responsible for its own appraiser's fees and expenses.
48	48	(b) If at the end of the appraisal process the amount of loss
49	49	is determined to be more than 10 percent greater than the amount of
50	50	the insurer's last offer, the insurer shall refund the named
51	51	insured's reasonable out-of-pocket expenses for the insured's
52	52	appraiser's fees and expenses.
53	53	(c) If at the end of the appraisal process the appraisal
54	54	award is more than 10 percent less than the amount the insurer last
55	55	offered, the named insured shall pay the insurer's appraiser's
56	56	reasonable fees and expenses.
57	57	(d) All other appraisal expenses, including umpire
58	58	expenses, are shared evenly between the parties.
59	59	Sec. 1952.407. NO RIGHTS WAIVED. An insurer and a named
60	60	insured do not waive any rights under the policy that is the subject
61	61	of the appraisal by demanding an appraisal.
62	62	SECTION 2. The change in law made by this Act applies only
63	63	to an insurance policy that is delivered, issued for delivery, or
64	64	renewed on or after January 1, 2026.
65	65	SECTION 3. This Act takes effect September 1, 2025.