Texas State Legislature has introduced Senate Bill 369, a significant legislative measure aimed at reforming the appraisal process for disputed losses under personal automobile insurance policies. Introduced on November 14, 2024, the bill seeks to establish a clear and structured procedure for appraisals, addressing ongoing concerns about fairness and efficiency in insurance claims.

The bill mandates that all personal automobile insurance policies in Texas include a specific appraisal procedure. This provision is designed to streamline the process when disputes arise over the amount of loss following an accident. Key elements of the bill include the requirement for both insurers and insured parties to appoint unbiased appraisers within a set timeframe and to resolve disputes through a binding determination by these appraisers or an umpire if necessary.

Notably, the bill stipulates that if the final appraisal amount exceeds the insurer's last offer by more than 10 percent, the insurer must reimburse the insured for their appraiser's fees. Conversely, if the appraisal amount is less than the insurer's last offer by the same margin, the insured must cover the insurer's appraiser costs. This provision aims to encourage fair negotiations and discourage lowball offers from insurers.

The introduction of SB 369 has sparked discussions among stakeholders, including insurance companies, consumer advocacy groups, and legal experts. Proponents argue that the bill will enhance transparency and accountability in the insurance industry, potentially leading to better outcomes for consumers. However, some insurers express concerns about the financial implications of the new requirements, fearing increased costs associated with appraisals.

The bill is set to take effect on September 1, 2025, and will apply to policies issued or renewed after January 1, 2026. As the legislative process unfolds, the implications of SB 369 could reshape the landscape of personal automobile insurance in Texas, impacting how disputes are resolved and influencing the relationship between insurers and policyholders. Stakeholders are closely monitoring the bill's progress, anticipating its potential to improve consumer protection in the insurance sector.