The bill, addressing appraisals conducted for insurance purposes, sets standards for when an appraiser, including an appraisals umpire, is considered fair, impartial, and neutral. The bill imposes the following requirements:
- An appraiser is prohibited from having a direct, material interest in the amounts determined by the appraisal process;
- An appraiser, including an appraisals umpire, must disclose to all parties any known fact discovered at any time that a reasonable person would consider likely to affect the appraiser's interest in the amount determined by the appraisal;
- Both the insurer and the insured, and their representatives, are prohibited from communicating with the other party's appraiser without the consent and participation of both parties; except that appraisers may directly communicate with each other to reach an agreed-upon settlement amount;
- The insurer, the insured, and their representatives, including adjusters, attorneys, and appraisers, must not have ex parte communications with the umpire during the appraisal process; and
- The umpire must not have ex parte communications with the insurer, including adjusters, the insured, and their representatives, including public adjusters.
(Note: This summary applies to this bill as introduced.)