Bill Caption

Relating to an appraisal procedure for disputed losses under personal automobile insurance policies.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 2534 would create a process for resolving disputed losses under a personal auto insurance policy.

HB 2534 would allow an insured who disagrees with an automobile insurer over a loss estimate to demand an appraisal, not later than 90 days after a proof of loss is filed. Each party would be required to appoint an appraiser and inform the other party of their respective appraiser's identity within 15 days of the demand for appraisal. If the appraisers disagree on the damages and can not agree on an umpire to settle the dispute, a court-selected umpire will moderate the dispute.

The insurer would be required to refund an insured's reasonable out of pocket expenses for appraiser fees if the amount of loss is determined to be more than $1 greater than the amount of the insurer’s proposed undisputed loss statement. If the insurers proposed undisputed loss statement is determined to be just, the insured would be required to refund the insurer's appraiser's fees and expenses. 

The bill would also require a personal automobile insurance policy to contain an appraisal procedure to comply with this bill.

Vote Recommendation Notes

Texas Action opposes HB 2534 because it violates the limited government and free market principles. The state should not micromanage the process of settling these disputes.