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A BILL TO BE ENTITLED
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AN ACT
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relating to an appraisal procedure for disputed losses under |
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certain property and casualty insurance policies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle A, Title 10, Insurance Code, is amended |
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by adding Chapter 1813 to read as follows: |
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CHAPTER 1813. APPRAISAL PROCEDURES |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 1813.001. APPLICABILITY OF CHAPTER. (a) This chapter |
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applies only to an insurer writing a property or casualty insurance |
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policy, including the FAIR Plan Association, the Texas Automobile |
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Insurance Plan Association, a Lloyd's plan, a reciprocal or |
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interinsurance exchange, a farm mutual insurance company, and a |
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county mutual insurance company. |
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(b) This chapter does not apply to the Texas Windstorm |
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Insurance Association. |
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Sec. 1813.002. RULES. The commissioner may adopt rules |
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necessary to implement this chapter. |
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Sec. 1813.003. REQUIRED POLICY PROVISION: APPRAISAL |
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PROCEDURE. An insurance policy described by Section 1813.001 must |
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contain an appraisal procedure for first-party property damage |
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claims that complies with this chapter. |
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SUBCHAPTER B. APPRAISAL PROCEDURES |
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Sec. 1813.051. APPRAISAL DEMAND. (a) If the policyholder |
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and insurer fail to agree to the amount of a loss covered by the |
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policy, the policyholder or insurer may provide a written demand |
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for an appraisal to the other party not later than the 180th day |
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after the date the policyholder receives the initial offer from the |
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insurer. |
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(b) The insurer must include written notification of the |
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180-day deadline to demand appraisal in the insurer's initial offer |
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to the policyholder. |
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(c) The policyholder and the insurer may agree in writing |
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not later than the 20th day after the date on which a demand for |
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appraisal is provided to waive any deadlines imposed by this |
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subchapter. |
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Sec. 1813.052. SELECTION OF APPRAISERS. Not later than the |
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20th day after the date an appraisal demand is provided under |
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Section 1813.051, the policyholder and insurer shall each: |
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(1) select a disinterested and competent appraiser; |
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and |
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(2) provide written notice to the other party of the |
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appraiser's identity. |
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Sec. 1813.053. APPRAISAL OF LOSS BY APPRAISERS; SELECTION |
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OF UMPIRE. (a) The appraisers shall appraise the loss that is the |
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subject of the appraisal not later than the 90th day after the date |
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both the policyholder and insurer have complied with Section |
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1813.052. |
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(b) The policyholder and insurer by agreement may twice |
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extend the deadline described by Subsection (a) for a period not to |
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exceed 60 days each time. |
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(c) If the appraisers agree on the amount of the loss: |
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(1) the appraisers shall provide written notice of the |
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agreement to the policyholder and insurer; and |
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(2) the agreed amount is set as the amount of the loss. |
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(d) If the appraisers fail to agree on the amount of the |
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loss, the appraisers shall select a competent and impartial umpire. |
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If the appraisers do not agree on an umpire before the 20th day |
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after the deadline for the appraisers to determine the amount of the |
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loss under this section, a judge of a court in the county in which |
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the policyholder resides or where the property is located shall |
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select the umpire on the request of the policyholder or insurer. The |
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policyholder or insurer shall provide at least 10 days' notice of |
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the request to the other party before the request is submitted to |
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the court. |
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(e) After the umpire is selected under Subsection (d), the |
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appraisers shall provide written notice to the umpire that |
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includes: |
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(1) the amount each appraiser sets for the loss; and |
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(2) any supporting documentation. |
Statutes affected:
Introduced: ()
House Committee Report: ()