89R14682 SCL-F     By: Morgan H.B. No. 4074       A BILL TO BE ENTITLED   AN ACT   relating to licensing requirements for insurance umpires and   appraisers; authorizing fees; providing an administrative penalty.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle D, Title 13, Insurance Code, is amended   by adding Chapter 4156 to read as follows:   CHAPTER 4156.  UMPIRES AND APPRAISERS          Sec. 4156.001.  DEFINITIONS. In this chapter:                (1)  "Appraiser" means an individual selected by an   insurer or insured to assess the value of damages or loss in an   insurance dispute.                (2)  "Umpire" means a neutral third-party professional   selected to resolve disputes between appraisers in an insurance   appraisal process.          Sec. 4156.002.  RULES. The commissioner may adopt rules to   implement this chapter.          Sec. 4156.003.  LICENSING REQUIREMENTS. (a)  An individual   may not serve as an umpire or appraiser unless the individual holds   a valid license issued by the department.          (b)  The department shall issue an umpire or appraiser   license to an applicant who:                (1)  is at least 18 years old and a United States   citizen or legal resident authorized to work in the United States;                (2)  completes a 40-hour pre-licensing course approved   by the commissioner;                (3)  successfully passes a state licensing examination   approved by the commissioner;                (4)  submits to a fingerprint-based criminal   background check;                (5)  files a completed application and pays the   required fees to the department not later than the first   anniversary of the date the applicant passes the examination; and                (6)  maintains a surety bond in an amount set by the   commissioner that is not less than $10,000.          Sec. 4156.004.  CONTINUING EDUCATION REQUIREMENTS. (a)  To   maintain a license issued under this chapter, an umpire or   appraiser must complete 24 hours of continuing education every two   years as required by the commissioner.          (b)  The continuing education must include:                (1)  ethics training of at least three hours;                (2)  insurance policy interpretation and appraisal   processes;                (3)  alternative dispute resolution; and                (4)  any other subject as determined by the   commissioner.          (c)  At least 12 of the 24 continuing education hours   required under this section must be completed in a classroom or   equivalent setting in accordance with commissioner rule.          Sec. 4156.005.  LICENSE RENEWAL. (a)  A license issued under   this chapter is valid for two years and must be renewed before the   last day of the license holder's birth month.          (b)  An applicant for renewal must:                (1)  demonstrate compliance with continuing education   requirements; and                (2)  pay the renewal fee as set by the commissioner.          Sec. 4156.006.  ENFORCEMENT. (a)  The department may   investigate complaints, conduct audits, and enforce compliance   with this chapter.          (b)  Not earlier than the 90th day after the last day of a   licensing period, the commissioner may impose an administrative   penalty of $50 per deficient hour for failure to complete the   continuing education requirements described by Section 4156.004.          (c)  The commissioner may impose an administrative penalty   under Chapter 84 on a person who acts as an umpire or appraiser   without a valid license in an amount that does not exceed $4,500 per   violation in addition to any other enforcement action authorized by   this code that the commissioner considers necessary.          SECTION 2.  (a)  Except as provided by Subsection (b) of this   section, an umpire or appraiser, as those terms are defined by   Section 4156.001, Insurance Code, as added by this Act, who began   operating before the effective date of this Act is not required to   comply with the licensing, bonding, and educational requirements   prescribed by Chapter 4156, Insurance Code, as added by this Act,   until September 1, 2027.          (b)  As soon as practicable after the effective date of this   Act, the commissioner of insurance shall establish temporary   licensing procedures for an umpire or appraiser described by   Subsection (a) of this section that apply to the umpire or appraiser   until September 1, 2027.          SECTION 3.  This Act takes effect September 1, 2025.