The bill, H.B. No. 4570, introduces a new chapter, Chapter 1813, to the Texas Insurance Code, which establishes an appraisal process for disputed losses under personal automobile and residential property insurance policies. This chapter applies specifically to various types of insurers, including capital stock insurance companies, mutual insurance companies, and the FAIR Plan Association, among others. However, it explicitly excludes policies from the Texas Windstorm Insurance Association and commercial insurance policies. The bill mandates that insurance policies covered by this chapter must include an appraisal provision that facilitates a dispute resolution process to determine the amount of loss when there is a disagreement between the policyholder and the insurer.

Additionally, the bill requires the commissioner to adopt rules to implement the appraisal process, ensuring that there is flexibility for adequate investigation and consideration of the appraisers' independence. The outcomes of the appraisal process are binding on both the policyholder and the insurer, except in cases of fraud or material mistake. The provisions of this chapter will apply only to insurance policies delivered, issued for delivery, or renewed on or after January 1, 2026, and the act is set to take effect on September 1, 2025.

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