The bill, H.B. No. 4074, introduces new licensing requirements for insurance umpires and appraisers in Texas by adding Chapter 4156 to the Insurance Code. It defines key terms such as "appraiser" and "umpire," and establishes that individuals must hold a valid license issued by the department to serve in these roles. The licensing process includes criteria such as being at least 18 years old, completing a 40-hour pre-licensing course, passing a state examination, undergoing a criminal background check, and maintaining a surety bond of at least $10,000. Additionally, the bill mandates 24 hours of continuing education every two years, with specific requirements for ethics training and other relevant subjects.

The bill also outlines enforcement mechanisms, allowing the department to investigate complaints and impose administrative penalties for non-compliance with continuing education requirements or for operating without a valid license. Existing umpires and appraisers who began their operations before the bill's effective date will not need to comply with the new requirements until September 1, 2027, during which temporary licensing procedures will be established. The act is set to take effect on September 1, 2025.

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