By: Clardy, et al. (Senate Sponsor - Schwertner)	H.B. No. 1437
	(In the Senate - Received from the House May 10, 2023;
	May 17, 2023, read first time and referred to Committee on Business &
	Commerce; May 22, 2023, reported adversely, with favorable
	Committee Substitute by the following vote:  Yeas 10, Nays 0;
	May 22, 2023, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR H.B. No. 1437	By:  Schwertner

	COMMITTEE VOTE
	YeaNayAbsentPNV
	SchwertnerX
	KingX
	BirdwellX
	CampbellX
	CreightonX
	JohnsonX
	KolkhorstX
	MenéndezX
	MiddletonX
	NicholsX
	ZaffiriniX
	A BILL TO BE ENTITLED
	AN ACT
	relating to an appraisal process for disputed losses under personal
	automobile or residential property insurance policies.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subtitle A, Title 10, Insurance Code, is amended
	by adding Chapter 1813 to read as follows:
	CHAPTER 1813. APPRAISAL OF DISPUTED LOSSES
	Sec. 1813.001.  APPLICABILITY OF CHAPTER. (a)  This chapter
	applies only to a personal automobile or residential property
	insurance policy delivered, issued for delivery, or renewed in this
	state by an insurer, including:
	(1)  a capital stock insurance company;
	(2)  a mutual insurance company;
	(3)  a county mutual insurance company;
	(4)  a Lloyd's plan;
	(5)  a reciprocal or interinsurance exchange;
	(6)  a farm mutual insurance company;
	(7)  an eligible surplus lines insurer if this state is
	the insured's home state as defined by Section 981.002; and
	(8)  the FAIR Plan Association.
	(b)  This chapter does not apply to:
	(1)  an insurance policy delivered, issued for
	delivery, or renewed by the Texas Windstorm Insurance Association;
	or
	(2)  a commercial insurance policy.
	Sec. 1813.002.  RULES. The commissioner may adopt rules
	necessary to implement this chapter.
	Sec. 1813.003.  REQUIRED POLICY PROVISION: APPRAISAL
	PROCESS. (a)  An insurance policy described by Section 1813.001(a)
	must contain an appraisal provision that complies with this
	chapter.
	(b)  The appraisal provision required by this chapter is
	intended to provide a type of dispute resolution process solely to
	determine the amount of loss when that amount is in dispute between
	the policyholder and the insurer.
	Sec. 1813.004.  EFFECT OF APPRAISAL. (a)  An appraisal under
	the provision required by this chapter does not affect any
	applicable policy terms.
	(b)  Except for fraud or material mistake relevant to the
	appraisal, the amount of loss determined by an appraisal under this
	chapter is binding as to the policyholder and the insurer.
	SECTION 2.  Chapter 1813, Insurance Code, as added by this
	Act, applies only to an insurance policy delivered, issued for
	delivery, or renewed on or after January 1, 2024.
	SECTION 3.  This Act takes effect September 1, 2023.
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