This bill amends Chapter 12 of Title 49 of the Idaho Code by adding a new section, 49-1211, which establishes a framework for appraisals and a dispute resolution process for automobile insurance claims. It mandates that all automobile insurance policies include a provision for appraisal by a competent and disinterested appraiser when there is a disagreement between the policyholder and the insurer regarding the actual cash value of a loss or the settlement offer for a third-party liability claim. The process allows either party to invoke the appraisal provision through a written demand, requiring the other party to select an appraiser within twenty days. Each party is responsible for their own appraisal costs, and the appraisers must complete their evaluations within twenty business days.

If the appraisers cannot reach an agreement, either party may initiate a dispute resolution process with a mutually selected umpire. The umpire will review the documentation from both parties and issue a binding award within twenty business days, which will determine the actual cash value or amount of loss. The bill also states that failure by an insurer to comply with these procedures constitutes a violation of existing insurance regulations. The Department of Insurance is authorized to create rules for the implementation of this section, and the act is set to take effect on July 1, 2026, due to an emergency declaration.