SECTION 5.4212. Appraisal Process - Appraiser Qualifications and Conflicts of Interest

(a) Qualifications. To qualify as an appraiser, a person must be one of the following:

(1) an engineer or architect with experience and training in building construction, repair, estimating, or investigation of property damage;

(2) an adjuster or public adjuster with experience and training in estimating property damage; or

(3) a general contractor with experience and training in building construction, repair, or estimating property damage.

(b) Potential conflicts. A potential conflict of interest exists when an appraiser:

(1) is a current or former association or claimant employee;

(2) is a current or former association or claimant contractor or contractor's employee, except that it is not a potential conflict for the appraiser to be a contractor solely to work on the pending appraisal;

(3) is related within a degree of relationship described by Government Code §573.002 to:

(A) a current or former association employee;

(B) a current or former association contractor or contractor's employee;

(C) the claimant or a representative of the claimant;

(D) a current or former claimant employee; or

(E) a current or former claimant contractor or contractor's employee;

(4) is a current association policyholder;

(5) currently has an open claim or acts as a representative or public adjuster on an open claim with the association, or previously filed a claim with the association;

(6) is a current employee or contractor of an insurance company or public insurance adjusting company;

(7) currently is a party or represents a party to a lawsuit with the association, or was a party or represented a party to a lawsuit with the association within the previous five years;

(8) adjusted the loss or acted as a public adjuster on the loss involved in the claim;

(9) is related to the adjuster or public adjuster who adjusted the loss;

(10) is an employee of the adjusting company or public insurance adjusting company that adjusted the loss or represented the claimant on the loss; or

(11) has any other direct or indirect interest, financial or otherwise, of any nature that substantially conflicts with the appraiser's duties.

Source Note: The provisions of this §5.4212 adopted to be effective February 14, 2013, 38 TexReg 653