Bill Text: TX SB458 | 2025-2026 | 89th Legislature | Introduced
Bill Title: Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-02-03 - Referred to Business & Commerce [SB458 Detail]
Download: Texas-2025-SB458-Introduced.html
| 89R5448 DNC-D | ||
| By: Schwertner | S.B. No. 458 | |
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| 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 shall adopt rules | ||
| necessary to implement this chapter, including rules establishing | ||
| the period in which an appraisal under a provision required by this | ||
| chapter must be completed. In adopting the rules establishing that | ||
| period, the commissioner shall: | ||
| (1) allow flexibility for an adequate investigation of | ||
| the claim that is the subject of the appraisal; and | ||
| (2) consider the time necessary to preserve the | ||
| independence of the appraisers. | ||
| 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, 2026. | ||
| SECTION 3. This Act takes effect September 1, 2025. | ||
