Bill Text: TX SB369 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-11-14 - Filed [SB369 Detail]
Download: Texas-2025-SB369-Introduced.html
| 89R2032 CJD-D | ||
| By: Schwertner | S.B. No. 369 | |
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| relating to an appraisal procedure for disputed losses under | ||
| personal automobile insurance policies. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Chapter 1952, Insurance Code, is amended by | ||
| adding Subchapter I to read as follows: | ||
| SUBCHAPTER I. APPRAISAL PROCEDURES | ||
| Sec. 1952.401. APPLICABILITY OF SUBCHAPTER. This | ||
| subchapter applies to an insurer writing personal automobile | ||
| insurance in this state, including an insurance company, | ||
| corporation, reciprocal or interinsurance exchange, mutual | ||
| insurance company, capital stock company, association, county | ||
| mutual insurance company, Lloyd's plan, and any other insurer. | ||
| Sec. 1952.402. REQUIRED POLICY PROVISION: APPRAISAL | ||
| PROCEDURE. A personal automobile insurance policy must contain an | ||
| appraisal procedure that complies with this subchapter. | ||
| Sec. 1952.403. APPRAISAL DEMAND; APPOINTMENT OF | ||
| APPRAISERS. (a) An insurer or the named insured may demand an | ||
| appraisal not later than the 90th day after the insurer accepts | ||
| liability and issues the insurer's undisputed liability offer. | ||
| (b) Each party shall appoint an unbiased appraiser and | ||
| notify the other party of that appraiser's identity not later than | ||
| the 15th day after the date an appraisal is demanded. | ||
| Sec. 1952.404. DETERMINATION OF LOSS. (a) The appraisers | ||
| appointed by the parties shall determine the amount of loss. | ||
| (b) If the appraisers fail to agree on the amount of loss | ||
| after the 30th day after the date all appraisers are appointed, the | ||
| appraisers shall select an unbiased umpire. The appraisers and | ||
| umpire shall determine the amount of loss not later than the 30th | ||
| day after the date the umpire is selected. | ||
| (c) The determination of the amount of loss agreed to by | ||
| both appraisers or by one appraiser and the umpire is binding on | ||
| both parties. | ||
| Sec. 1952.405. COURT SELECTION OF UMPIRE. If the two | ||
| appraisers are unable to agree on an umpire on or before the 15th | ||
| day after the date the appraisers determine an umpire is needed, the | ||
| insurer or the named insured may request that a court in the county | ||
| in which the named insured resides select the umpire. | ||
| Sec. 1952.406. APPRAISAL FEES AND EXPENSES. (a) Each party | ||
| is responsible for its own appraiser's fees and expenses. | ||
| (b) If at the end of the appraisal process the amount of loss | ||
| is determined to be more than 10 percent greater than the amount of | ||
| the insurer's last offer, the insurer shall refund the named | ||
| insured's reasonable out-of-pocket expenses for the insured's | ||
| appraiser's fees and expenses. | ||
| (c) If at the end of the appraisal process the appraisal | ||
| award is more than 10 percent less than the amount the insurer last | ||
| offered, the named insured shall pay the insurer's appraiser's | ||
| reasonable fees and expenses. | ||
| (d) All other appraisal expenses, including umpire | ||
| expenses, are shared evenly between the parties. | ||
| Sec. 1952.407. NO RIGHTS WAIVED. An insurer and a named | ||
| insured do not waive any rights under the policy that is the subject | ||
| of the appraisal by demanding an appraisal. | ||
| SECTION 2. The change in law made by this Act applies only | ||
| to an insurance policy that is delivered, issued for delivery, or | ||
| renewed on or after January 1, 2026. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
