Section 5.4214 - Appraisal Process - Umpire Qualifications and Conflicts of Interest(a) Required qualifications. To qualify as an umpire, a person must: (1) be one of the following: (A) an engineer or architect with experience and training in building construction, repair, estimating, or investigation of property damage;(B) an adjuster or public adjuster with experience and training in estimating property damage;(C) a general contractor with experience and training in building construction, repair, or estimating property damage;(D) a licensed attorney; or(E) a current or former judge of any Texas court of record or the State Office of Administrative Hearings; and(2) not have any disqualifying conflicts of interest listed in subsection (d) of this section.(b) Preferred qualifications. The following qualifications are preferred: (1) experience with the appraisal of property damage claims; and(2) experience as an appraisal umpire on at least three property damage claims in the previous 12 months.(c) Potential conflicts. A potential conflict of interest exists when an umpire: (1) is a former association or claimant employee or contractor or contractor's employee;(2) is related within a degree of relationship described by Government Code § 573.002 to: (A) a former association employee;(B) a former association contractor or contractor's employee;(C) a former claimant employee; or(D) a former claimant contractor or contractor's employee;(3) is a current association policyholder;(4) previously filed a claim with the association;(5) is a current employee or contractor of an insurance company or public insurance adjusting company; or(6) was a party or represented a party to a lawsuit with the association within the previous five years.(d) Disqualifying conflicts. A potential umpire has a disqualifying conflict of interest if the potential umpire:(1) is a current association or claimant employee;(2) is a current association or claimant contractor, or contractor's employee, except that it is not a conflict for the umpire 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 association employee;(B) a current association contractor or contractor's employee;(C) the claimant or a representative of the claimant;(D) a current claimant employee; or(E) a current claimant contractor or contractor's employee;(4) currently has an open claim, or acts as a representative or public adjuster on an open claim with the association;(5) is a party to or represents a party to a current lawsuit with the association;(6) adjusted the loss or acted as a public adjuster on the loss involved in the claim;(7) is related to the adjuster or public adjuster who adjusted the loss;(8) is an employee of the adjusting company or public insurance adjusting company that adjusted the loss or represented the claimant on the loss; or(9) has any other direct or indirect interest, financial or otherwise, of any nature that substantially conflicts with the umpire's duties.28 Tex. Admin. Code § 5.4214
The provisions of this §5.4214 adopted to be effective February 14, 2013, 38 TexReg 653