INTRODUCED BY MICOZZIE, COLAFELLA, MELlO, SCHRODER, CARN, BELARDI, TRELLO,
WALKO, CLARK, M. N. WRIGHT, STABACK, KREBS, WAUGH, FEESE, LEH, CONTI, SATHER,
CIVERA, KENNEY, ROHRER, E. Z. TAYLOR, MARSICO, ZIMMERMAN, BROWNE, O'BRIEN,
YOUNGBLOOD, BUNT, CALTAGIRONE, TANGRETTI, SEMMEL AND STRITTMATTER, APRIL
8, 1997
REFERRED TO COMMITTEE ON INSURANCE, APRIL 8, 1997
AN ACT
1 Amending the act of December 29, 1972 (P.L.1713, No.367),
2 entitled "An act concerning motor vehicle physical damage
3 appraisers; providing for the licensing of persons engaged in
4 appraising physical damages to motor vehicles; fixing fees
5 and prescribing unlawful acts and penalties," adding and
6 amending certain definitions; further providing for fees,
7 penalties and licenses and for the duties of appraisers; and
8 providing for duties of the Attorney General.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 2 of the act of December 29, 1972
12 (P.L.1713, No.367), known as the Motor Vehicle Physical Damage
13 Appraiser Act, is amended to read:
14 Section 2. Definitions.--As used in this act:
15 "Actual cost" means the estimate of damages to repair
a motor
16 vehicle and to restore it to pre-accident condition based on the
17 proper use of an objective industry-wide accepted repair guide
18 manual for parts, labor, refinishing and paint and body -
19 materials that is used by the repair shop selected by the
-1-
1 consumer.
2 [(1)] "Appraiser" means a motor vehicle physical damage
3 appraiser[. This] or adjuster. The term shall include all
4 persons [in this State] who practice the appraisal of motor
5 vehicle physical damage.
6 [(2) "Commissioner" means the Insurance commissioner of the
7 Commonwealth of Pennsylvania.]
8 "Bureau" means the Bureau of Professional and
Occupational
9 Affairs of the Department of State.
10 "Commissioner" means the Commissioner of Professional
and
11 Occupational Affairs.
12 [(3)] "Insurer" includes all companies, associations and
13 exchanges [engaged] or other legal entities authorized to engage
14 in the insurance business of insurance and self-insurers.
15 Section 2. Section 3(e) of the act is amended and the
16 section is amended by adding a subsection to read:
17 Section 3. Licenses; Examination; Fees.--* * *
18 [(e) The fee to be paid to the commissioner by an applicant
19 for an appraiser's license shall be ten dollars ($10) at the
20 time the application is made and ten dollars ($10) annually for
21 the renewal thereof. In the event of failure to pass the
22 examination, the fee of ten dollars ($10) shall not be
23 returnable.]
24 (e.l) The fee to be paid to the commissioner by the
25 applicant for an appraiser's license shall be two hundred fifty
26 dollars ($250) at the time the application is made and one
27 hundred dollars ($100) annually for the renewal thereof. In the
28 event of failure to pass the examination, the fee of two hundred
29 fifty dollars ($250) shall not be returned.
30 * * *
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1 Section 3. Sections 9, 10 and 11 of the act are amended to
2 read:
3 Section 9. Penalties.--Any person who violates any of the
4 provisions' of this act is guilty of a misdemeanor of the third
5 degree and upon conviction thereof, for each offense, shall be
6 sentenced to pay a fine not exceeding [five hundred dollars
7 ($500)] five thousand dollars ($5,000) , or to undergo
8 imprisonment not exceeding one year, or both.
9 Section 10. Rules and Regulations.--The [Insurance
10 Commissioner] commissioner is hereby charged with the
11 administration [and enforcement] of this act and the Secretary
12 of the Commonwealth shall prescribe, adopt and promulgate rules
13 and regulations in connection therewith.
14 Section 11. Compliance with Act.--(a) Each appraiser, while
15 engaged in appraisal duties, shall carry the license issued to
16 him by the [Insurance Department] commissioner and shall display
17 it, upon request, to an owner whose vehicle is being inspected,
18 to the repair shop representative involved or to any authorized
19 representative of [the Insurance Department] either the bureau
20 or the Attorney General.
21 (b) The appraiser shall leave a legible copy of his
22 appraisal with that of the repair shop selected by the consumer
23 to make the repairs and also furnish a copy to the owner of the
24 vehicle. This appraisal shall contain the name of the insurance
25 company ordering it, if any, the insurance file number, the
26 number of the appraiser's license and the proper identification
27 number of the vehicle being inspected. All unrelated or old
28 damage should be clearly indicated on the appraisal which shall
29 include an itemized listing of all damages, specifying those
30 parts to be replaced or repaired. Because an appraiser is
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1 charged with a high degree of regard for the public safety, the
2 operational safety of the vehicle shall be paramount in
3 considering the specification of new parts. This consideration
4 is vitally important where the parts involved pertain to the
5 drive train, steering gear, suspension units, brake system or
6 tires.
7 (c) No appraiser shall secure or use repair estimates that
8 have been obtained by the use of photographs, telephone calls or
9 in any manner other than a personal inspection.
10 (d) No appraiser or his employer shall require or
recommend
11 that repairs be made in any specified repair shop. No appraiser
12 or his employer shall make any referral to a specified repair
13 shop or solicit a request from a consumer for a recommendation
14 to a repair shop.
15 (e) Every appraiser shall promptly reinspect damaged
16 vehicles prior to the repairs in question when supplementary
17 allowances are requested by repair shops and the amount or
18 extent of damages is in dispute.
19 (f) Every appraiser shall:
20 (1) Conduct himself in such a manner as to inspire public
21 confidence by fair and honorable dealings.
22 (2) Approach the appraisal of damaged property without
23 prejudice against, or favoritism toward, any party involved in
24 order to make fair and impartial appraisals.
25 (3) Disregard any efforts on the part of others to influence
26 his judgment in the interest of the parties involved.
27 (4) Prepare an independent appraisal of damage which
shall
28 insure that the actual cost of repairs is adequately covered.
29 (5) Inspect a vehicle within six working days of assignment
30 to the appraiser unless intervening circumstances (i.e.
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1 catastrophe, death, failure of the parties to cooperate) render
2 such inspection impossible.
3 (6) Attempt in good faith to reconcile fairly any
4 discrepancy between his independent appraisal of damage and the
5 estimate prepared by the owner, or his authorized
6 representative, of the repair shop selected by the customer.
7 (g) No appraiser shall:
8 (1) Receive directly or indirectly any gratuity or other
9 consideration in connection with his appraisal services from any
10 person except his employer or, if self-employed, his customer.
11 (2) Traffic in automobile salvage if such salvage is
12 obtained in any way as a result of appraisal services rendered
13 by him for his own benefit.
14 (3) Fail to discuss an appraisal with or render an
estimate
15 to the consumer and the owner, or his authorized representative,
16 of the repair shop selected by the consumer.
17 (4) Prepare an independent appraisal of damages which
is
18 based on the use of used parts or unsuitable repair procedures
19 when the motor vehicle has a warranty that requires replacement
20 with new parts manufactured by the manufacturer of the motor
21 vehicle and provides for the proper repair procedures to prevent
22 accelerated depreciation of the motor vehicle.
23 (5) Require a consumer to have his motor vehicle
inspected
24 or appraised at a specific location identified by an appraiser
25 or his employe.
26 (h) Every appraiser shall prepare an independent
appraisal
27 of damages which is based on the actual cost to repair a motor
28 vehicle and restore it to pre-accident or pre-loss condition.
29 Section 4. The act is amended by adding a section to
read:
30 Section 11.1. Powers and Duties of Attorney
General.--The
1997OH1250B1403 - 5 -
1 Attorney General shall be charged with the enforcement of
2 section 11 of this act and shall prescribe, adopt and promulgate
3 rules and regulations in connection therewith.
4 Section 5. All acts and parts of acts are repealed insofar
5 as they are inconsistent with this act.
6 Section 6. This act shall take effect in 180 days.
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