Texas Vehicle (Appraisal Clause” Regulation

§5.9804. Personal Automobile Appraisal Process.
(a) Appraisal demand. A demand for appraisal under a personal automobile
insurance policy must be made in writing not later than 120 days from the date the insurer
gives the policyholder notice accepting coverage of the property loss or damage that is
the subject of the appraisal.
(b) Appraisers and umpire procedures.
(1) Each party must hire its own appraiser and notify the other party in
writing of the appraiser’s identity not later than 20 days after a written demand for
appraisal is made.
(2) The two appraisers must attempt to agree on the amount of loss or
damage in dispute within 75 days after a written demand for appraisal is made.
(3) If the appraisers cannot agree on the amount of loss or damage, they
must select an umpire not later than 105 days after a written demand for appraisal is
made.
(4) If the appraisers cannot agree on an umpire, either party may petition a
county or district court to appoint an umpire. The court must be in a county or district
where the policyholder resides or where the vehicle is principally garaged.
(5) If an umpire is engaged, the appraisal award must be issued not later
than 180 days after the umpire is selected or appointed. If an appraisal award is not issued
by the deadline, the appraisers may select a new umpire.
(c) Extension of deadlines. The parties may extend any deadline in the appraisal
process by written agreement.
TITLE 28. INSURANCE
Part I. Texas Department of Insurance
Chapter 5. Property and Casualty Insurance
§5.9805. Notice to Policyholders.
Informal Working Draft
Page 6 of 6
(a) The insurer must provide written notice of the appraisal process, applicable
deadlines, and the right of either party to demand appraisal in the notice accepting
coverage, which is described in Insurance Code §542.056, concerning Notice of
Acceptance or Rejection of Claim.
(b) The appraisal process notice must be in plain language and explain:
(1) how the policyholder may demand appraisal;
(2) the policyholder’s responsibilities in the appraisal process, including the
duty to select an appraiser and any responsibility for appraisal expenses;
(3) applicable time limits, including the deadline to demand appraisal and
any other deadlines in the appraisal process; and
(4) the effect of the appraisal award.