SB458 - Relating to an appraisal process for disputed losses under personal automobile or residential property insurance policies.

      S.B. No. 458         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. (a)   The commissioner shall adopt   rules necessary to implement this chapter, including:                 (1)     rules establishing the period in which an   appraisal under a provision required by this chapter must be   completed; and                 (2)     rules mandating an appraisal for total loss and   damage of the property that is the subject of the appraisal.           (b)     In adopting rules establishing the period described by   Subsection (a)(1), the commissioner must consider the   qualifications and selection of appraisers and umpires for the   appraisal.           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, and an appraisal award must be made in   substantial compliance with the appraisal clause of the insurance   policy.           (b)     Except for fraud, accident, or material mistake   relevant to the appraisal or an appraisal award made without   authority, the amount of loss determined by an appraisal under this   chapter is binding as to the policyholder and the insurer.          SECTION 2.  (a)  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.          (b)  An insurance policy form required to be filed under   Chapter 2301, Insurance Code, providing for an appraisal process   that is in use on January 1, 2026, and otherwise compliant with   Chapter 1813, Insurance Code, as added by this Act, is not required   to be filed with the Texas Department of Insurance as a consequence   of this Act.          SECTION 3.  This Act takes effect September 1, 2025.               ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 458 passed the Senate on   April 9, 2025, by the following vote: Yeas 29, Nays 0, one present   not voting; and that the Senate concurred in House amendment on   May 26, 2025, by the following vote: Yeas 30, Nays 0, one present   not voting.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 458 passed the House, with   amendment, on May 20, 2025, by the following vote: Yeas 143,   Nays 0, two present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor