H.B. No. 722 introduces a new provision to the Texas Insurance Code, specifically adding Section 1952.308, which mandates that automobile insurers provide disclosure of total loss evaluation materials upon request. This section applies to all insurers writing automobile insurance in Texas, including various types of insurance companies. When a person whose vehicle is being appraised for total loss requests information, the insurer is required to furnish a written explanation detailing the materials used to assess the loss, which includes the costs of repairs and the salvage value of the vehicle.

The new disclosure requirement will only apply to insurance policies that are delivered, issued for delivery, or renewed on or after January 1, 2026. The bill is set to take effect on September 1, 2025, allowing time for insurers to prepare for compliance with the new regulations.

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