Bill > SB5721

This bill enhances consumer protections for automobile insurance by requiring all auto insurance policies with first-party physical damage coverage, issued or renewed after January 1, 2026, to include a mandatory appraisal clause that provides a structured process for resolving disputes between insurers and policyholders about the actual cash value and amount of loss for a damaged vehicle. The appraisal process involves each party selecting a competent and disinterested appraiser who will independently assess the vehicle's value and loss, and if they cannot agree, they must appoint an umpire (either mutually selected or assigned by the insurance commissioner) to help resolve differences. The bill specifies detailed requirements for the appraisal process, including timelines for selecting appraisers and completing assessments, defines key terms like "competent" and "disinterested," and allows the insurance commissioner to adopt rules to implement these new requirements. The goal is to provide a clear, fair, and transparent mechanism for policyholders to challenge an insurance company's assessment of their vehicle's damage and value.