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

Contracts

• Policy Forms: You must review all personal auto and residential property forms. If your current appraisal clause does not align with the forthcoming TDI rules (specifically regarding deadlines and total loss), you must file compliant forms under Chapter 2301 before Jan 1, 2026.
• Vendor Agreements (TPAs/Adjusters): Service Level Agreements (SLAs) with independent adjusting firms and TPAs must be amended. You must contractually obligate vendors to meet the specific appraisal completion timelines TDI will release later this year.

Hiring/Training

• Claims Staff: Adjusters require immediate training on bifurcating disputes. They must distinguish "Amount of Loss" (subject to binding appraisal) from "Coverage" issues (not subject to appraisal).
• Appraiser Vetting: You must establish a protocol to verify that selected appraisers and umpires meet the new qualification standards TDI will establish via rulemaking.

Reporting & Record-Keeping

• Claims Management Systems (CMS): Update software to track three new statutory milestones to ensure compliance with forthcoming deadlines:
• 1. Date of Appraisal Demand.
• 2. Date of Appraiser Selection.
• 3. Date of Award.

Fees & Costs

• Litigation Costs: While intended to reduce litigation, costs may initially rise as legal teams defend the definition of "Material Mistake" to challenge binding awards.
• Appraisal Fees: Expect increased operational spend on appraisal fees as the statute explicitly mandates appraisal availability for total loss claims, a category previously often excluded by carriers.