88(R) HB 597 - House Committee Report version - Bill Text
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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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Statutes affected:
Introduced: ()
House Committee Report: ()