Rep. Van Taylor
Under legislation filed by Rep. Van Taylor (R-Taylor), a dispute between a property & casualty insurer and an insured over the amount of loss to be paid by the insurer must be referred to an appraisal process before the insured may file a civil claim against the insurer. HB 2125 requires the insured to demand an appraisal of the loss in accordance with rules adopted by the Commissioner of Insurance. A demand for appraisal tolls the applicable statute of limitations until 60 days after a decision on the appraisal is made. If an insurer demands an appraisal under the commissioner’s rules, the insurer and insured are each responsible for equal shares of the cost of the appraisal. If the insured and insurer retain different appraisers, they may agree on an “appraisal umpire” to resolve the dispute. The umpire is selected by agreement of the two appraisers; if they disagree, the Commissioner must appoint the umpire from a list of qualified persons maintained by TDI. If the insured brings a civil action contesting the appraisal decision, attorney’s fees are limited to 40% of the difference between the loss awarded by the judgment and the loss awarded by the appraisal. The remedy provided by HB 2125 is the sole, exclusive remedy for an insured in a property loss claim (other than a loss covered by a policy issued by TWIA, the Fair Plan Association, or the Texas Automobile Insurance Plan).
