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TITLE 28INSURANCE
PART 1TEXAS DEPARTMENT OF INSURANCE
CHAPTER 5PROPERTY AND CASUALTY INSURANCE
SUBCHAPTER ETEXAS WINDSTORM INSURANCE ASSOCIATION
DIVISION 4CONSUMER ASSISTANCE; CLAIM PROCESSES
RULE §5.4219Appraisal Process - Additional Obligations for Department-Selected Umpires

(a) Applicability. The following umpire obligations apply only when the department selects an umpire under §5.4217 of this title (relating to Appraisal Process - Umpire Selection by Department).

(b) Notices. No later than the seventh day after receiving notice of being selected for an appraisal, the umpire must send a notice to the parties and to the appraisers. This deadline may not be extended. The notice must:

  (1) be in writing;

  (2) inform the parties and appraisers that the umpire has been selected;

  (3) state whether the umpire is insured by the association; and

  (4) inform the parties of their right to object to the umpire under §5.4252 of this title (relating to Objections).

(c) Contract. Before the umpire begins work, the parties and the selected umpire must sign an appraisal contract. The contract must require:

  (1) the parties and the umpire to comply with the sections of this division related to appraisal; and

  (2) each party to pay one-half of all appraisal costs described in §5.4221 of this title (relating to Appraisal Process - Costs).

(d) Disposition. The umpire must notify the department when the appraisal process is complete and of the appraisal decision.

(e) Fees. The umpire must charge an hourly rate of $150 and may charge a two-hour minimum fee.

  (1) The parties may not pay an umpire on a contingent fee basis, percentage of the decision, barter arrangement, gift, favor, or in-kind exchange.

  (2) The umpire may charge for reasonable incurred travel costs, including mileage, meals, and lodging, according to the travel regulations adopted by the Texas Comptroller of Public Accounts under Government Code §660.021. The umpire must provide an estimate of travel costs as an addendum to the contract under subsection (c) of this section.


Source Note: The provisions of this §5.4219 adopted to be effective February 14, 2013, 38 TexReg 653

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