H.B. No. 4074 introduces new licensing requirements for insurance umpires and appraisers in Texas by adding Chapter 4156 to the Insurance Code. The bill 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. To obtain a license, applicants must meet several criteria, including 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, licensed umpires and appraisers are required to complete 24 hours of continuing education every two years, which must include specific topics such as ethics training and insurance policy interpretation.

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

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