|
CHAPTER 62. MOTOR VEHICLE PHYSICAL DAMAGE APPRAISERS
Sec.
62.1. Definitions.
62.2. Licensing requirements.
62.3. Applicable standards for appraisal.
62.4. Sanctions for violations.
Authority
The provisions of this Chapter 62 issued under sections 206, 506, 1501, and 1502 of the
act of April 9, 1929 (P. L. 177, No. 175) (71 P. S. section(s) 66, 186, 411 and 412),
unless otherwise noted.
Source
The provisions of this Chapter 62 adopted December 28, 1973, 3 Pa.B. 2959, unless
otherwise noted.
section 62.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings,
unless the context clearly indicates otherwise:
Act- The Motor Vehicle Physical Damage Appraiser Act (63 P.S. sections 851-863)
Appraisal- A monetary determination of damage incurred by a motor vehicle when the making
of such a determination is assigned in order to fix the value of insurance claims.
Appraisals shall include a determination whether made by the insurer, its employes, its
agents or related entities or made by another individual or entity otherwise assigned to
make a determination.
Appraiser- A natural person in this Commonwealth who makes appraisals of motor vehicle
physical damage.
Commissioner- The Insurance Commissioner of the Commonwealth.
Consumer- The owner of the motor vehicle which has incurred damage or the owner's
representative.
Dealer- An individual licensed, active and knowledgeable in the sale of used motor
vehicles similar to the being appraised.
Insurer- Companies, associations and exchanges engaged in the insurance business of
insurance companies and self-insurers.
Motor vehicle- A device in, upon or by which a person or property is or may be transported
or drawn upon a public highway.
Source
The provisions of this section 62.1 amended May 10, 1974, 4 Pa.B. 916. Immediately
preceding text appears at serial pages (14230) to (14231).
62.1
(188531) No. 238 Sep.94
section 62.2. Licensing requirements.
(a) A person may not directly or indirectly act or hold himself out as an appraiser unless
the person has first secured a license from the Commissioner in accordance with the
provisions of the act and this chapter.
(b) The fee to be paid to the Commissioner by an applicant for an appraiser's license
shall be $ 10 at the time the application is made and $10 annually for the renewal
thereof. In the event of failure to pass the examination, the fee of $10 will not be
returnable.
(c) Each appraiser, while engaged in appraisal duties, shall carry the license issued to
him by the Department and shall display it, upon request, to an owner whose vehicle is
being inspected, to the repair shop representative involved or to an authorized
representative of the Department.
(d) Except as otherwise provided in the act and this chapter, a person may not be granted
an appraiser's license unless he first establishes his qualifications therefor and takes
and passes an examination for appraisers.
(e) An applicant for the examination shall be at least 18 years of age; shall be a
resident of this Commonwealth, or a resident of another state or country which permits
residents of this Commonwealth to act as appraisers in that state or country; shall be
trustworthy.
(f) In order to qualify for the examination, an applicant shall establish his competency
to fulfill the responsibility of being an appraiser. This may be done by showing either a
minimum of 6 months continuous experience at an occupation directly involving the
estimation of physical damage to motor vehicles, such as a body repairman; or by providing
written documentation of successful completion of special education or training related to
appraising motor vehicle physical damage and acceptable to the Commissioner as assuring
minimum standards of competency.
(g) Applications for an examination as appraiser shall be made to the Commissioner upon
forms prescribed and furnished by him and shall be accompanied by the proper fee.
Information required on forms must be completed or the application will not be processed.
(h) The examination for licensure which shall be given under the supervision of the
Commissioner shall consist of a written examination that shall include the act of
appraising one or more damaged motor vehicles and shall be supplemented by an oral
examination. At the discretion of the Commissioner an oral examination in lieu of the
aforesaid written examination may be given but only for reason of an applicant's physical
handicap. An oral examination shall include the act of appraising one or more damaged
motor vehicles.
62.2
(188532) No. 238 Sep. 94 Copyright © 1994 Commonwealth of Pennsylvania
(i) Examinations shall be given at reasonable times and places within the Commonwealth. An
applicant who fails to pass the examination is not eligible to retake an examination for
30 days from the date of the failure.
(j) Upon proper application and the payment of a fee of $10 a person who has been employed
or engaged for a period of not less than 2 years prior to the submission of the
application in the appraising of physical damages to motor vehicles and is currently so
engaged shall be licensed without examination as an appraiser if the application is made
on or before July 1, 1973, and the applicant possesses the qualifications required of
applicants as provided in section 3 of the act (63 P.S. section 853) and subsections
(d)-(i).
(k) An appraiser's license shall expire annually at midnight of June 30th next following
the date of issuance.
(l) Subject to the right of the Commissioner to suspend, revoke or refuse to renew an
appraiser's license, the license may be renewed for another annual period commencing the
first day of July and expiring at midnight of June 30th next following by filing with the
Commissioner on or before the expiration date a written request, by or on behalf of the
licensee, for the renewal, accompanied by payment of the renewal fee.
(m) If the request and fee for renewal of the license is filed with the Commissioner prior
to the expiration of the existing license, the licensee may continue to act under the
license, unless sooner revoked or suspended, until the issuance of renewal license or
until the expiration of 5 days after the Commissioner has refused to renew the license and
has mailed notice of the refusal to the licensee. A request for renewal not so filed until
after the day of expiration may be considered by the Commissioner as an application for a
new license.
section 62.3. Applicable standards for appraisal.
(a) The appraisal statement shall adhere to the following form: (1) An appraisal shall
state the name of the insurance company, the insurance file number, the number of the
appraiser's license and the proper identification number of the vehicle being inspected.
(2) An appraisal shall be signed by the appraiser before the appraisal is submitted to the
insurer, the consumer or another involved party.
(3) An appraisal may not make use of abbreviations or symbols to describe work to be done
or parts to be repaired or replaced unless an explanation of the abbreviations and symbols
is included.
(b) The appraisal statement shall contain the following:
(1) Items necessary to return the vehicle to its condition prior to the damage in
question, including, but not necessarily limited to labor involved; necessary painting or
refinishing, and all sublet work to be done. Furthermore, there shall be a specification
of charges relating to towing, protective care, custody, storage, depreciation, including
but not limited to new battery and tire replacement, applicable sales tax payable on the
total dollar amount of the appraisal, and all other matter incidental to repair of the
incurred damage.
(2) A clear indication of the cost or dollar amount value of specified items.
(3) A clear indication of unrelated or old damage.
(4) If there is a date after which an insurer will not be responsible for a related towing
services or storage charges, or both, and after which the charges will be the
responsibility of the consumer, the appraisal shall clearly indicate that date.
(c) In the specification of new or used parts, the following standards shall be used for
the appraisal statement:
(1) The operational safety of the motor vehicle shall be paramount especially when the
parts involved pertain to the drive train, steering gear, suspension units, brake system
or tires.
(2) If used parts are specified in the appraisal, the appraiser shall have certain
knowledge of one or more relatively convenient locations where the particular used parts
are actually and reasonably available in usable condition equivalent to or better than the
condition of the damaged parts prior to the accident. The appraiser shall specify the
locations where such used parts are in fact available.
(d) In the appraisal of salvage value, the following standards shall be used:
(1) If the salvage value of the vehicle being appraised is known or could reasonable be
found out, the appraiser shall inform the consumer of the salvage value and additional
charges for towing services or storage chargeable against the motor vehicle as of the date
of the appraisal.
(2) For a salvage value listed, the appraiser shall inform the consumer of name and
address of salvage buyer, and the amount and expiration date of each salvage bid known.
(3) If the ownership and possession of the damaged motor vehicle is not retained by the
owner or his representative, this subsection dealing with salvage value need not be
complied with.
(e) The following standards shall be used regarding the betterment of the vehicle:
(1) An appraisal for the repair of the motor vehicle will be made in the amount necessary
to return the motor vehicle to its same condition just prior to the damage in question
being incurred.
(2) If the consumer is insistent upon the use of new parts rather than repair, or
otherwise wished to repair the motor vehicle to a condition better than that existing
prior to the damage incurred, the appraisal need only specify the cost of repairing the
vehicle to is condition just prior to the time the damage was incurred.
(f) The following standards shall be used to determine replacement value under policy
provisions covering the total loss of a motor vehicle including an uncovered motor
vehicle:
(1) If the costs of repair of a motor vehicle exceed its appraised value, less salvage
value or the motor vehicle cannot be satisfactorily or reasonably repaired to its
condition just prior to the damage in question being incurred, the appraised value of the
loss shall be the replacement value of the motor vehicle.
(2) The replacement value of a motor vehicle shall be calculated by use of the one of the
following methods:
(i) Guide source method. The appraiser shall calculate the average of two figures
reflecting the retail book value of a vehicle of like kind and condition, as stated in the
corrected edition of the Red Book (National Market Reports, Inc., Circulation Department,
300 West Adams Street, Chicago, Illinois 60606, telephone (800) 671-9907), the NADA Book
(Subscription Department, Post Office Box 7800, Costa Mesa, California 92628, telephone
(800) 622-6232), or any similar source of information approved by the Commissioner,
adjusted for equipment and mileage, less the cost of repair of damage which preexisted the
accident in question. There may be no other deductions except for salvage and then only if
the owner elects to retain the vehicle.
(ii) Actual cost method. The appraiser shall determine the actual cost of purchase of an
available motor vehicle of like kind and quality in condition similar to or better than
the motor vehicle being appraised just prior to the damage in question being incurred.
(iii) Dealer quotation method. The appraiser shall consult with dealers or other persons
knowledgeable in the field to secure quotations as to the value of the motor vehicle being
appraised. As least two quotations shall be secured. The figures thus secured shall be
averaged.
(3) If the motor vehicle is listed in any two of the sources authorized by paragraph
(2)(i), including older car publications, the replacement value shall be calculated by the
guide source method or by the actual cost method, as described in paragraph (2). If the
actual cost method is used, and the owner of the damaged vehicle shows that the
replacement vehicle is not of the same kind and quality, both calculations referenced in
this paragraph shall be made, and the higher of the values obtained shall be offered in
settlement.
(4) If the motor vehicle is not listed in any two of the sources authorized by paragraph
(2)(i), including older car publications, or if the vehicle differs materially from the
average vehicle because of factors not considered in guide sources, for example, antique
or classic cars, vehicle no longer manufactured and unique vehicles, the replacement value
shall be calculated by the actual cost method or by the dealer quotation method, as
described in paragraph (2). If the dealer quotation method is used, both calculations
referenced in this paragraph shall be made, and the higher of the values obtained shall be
offered in settlement.
(5) Applicable sales tax on the replacement cost of a motor vehicle shall be included as
part of the replacement value.
(6) The licensed appraiser's Total Loss Evaluation Report shall contain the names and
addresses of those persons from whom quotations were secured, the date secured, and
whether or not a similar vehicle was available.
(7) The licensed appraiser's file shall show the method used to determine the more
accurate replacement value in a given locality.
(8) A copy of the total loss evaluation sheet shall be given to the consumer by the
appraiser or by the insurer within 5 working days after the appraisal is completed. If an
offer of settlement is made before the consumer receives the total loss evaluation sheet,
the consumer shall be verbally advised of the contents thereof and of his right to receive
a copy within 5 days after its completion.
(g) The general standards of behavior of an appraiser shall include the following:
(1) Conduct to inspire public confidence by fair and honorable dealings.
(2) Appraisals of damaged property done without prejudice against, or favoritism toward,
any party involved.
(3) Disregard of attempts of others to influence his judgement in the interest of the
parties involved.
(4) Preparation of an independent appraisal of damage.
(5) Inspection of a vehicle within 6 working days of assignment to the appraiser unless
intervening circumstances (for example catastrophe, death, failure of the parties to
cooperate) render the inspection impossible.
62-6 (197406) No. 250 Sep. 95 Copyright © 1995 Commonwealth of Pennsylvania
(6) An appraiser may not receive directly or indirectly a gratuity or other consideration
in connection with his appraisal services from a person except his employer or, if
self-employed, his customer.
(7) An appraiser may not traffic in automobile salvage if the salvage is obtained as a
result of appraisal services rendered by him for his own benefit.
(8) An appraiser or his employer may not recommend or require that repairs be made at a
particular place or by a particular individual.
(9) An appraiser may not have a direct or indirect conflict of interest in the making of
an appraisal. This chapter and the act, and this section in particular, shall be strictly
interpreted to protect the interest of the consumer and place the burden upon the
appraiser to fully eliminate conflict of interest in the making of an appraisal. Unless as
otherwise specified in this chapter or act, a licensed appraiser may not attempt to
directly or indirectly coerce, persuade, induce or advise the consumer that appraised
motor vehicle physical damage must be, should be or could be repaired at a particular
locations or by a particular individual or business.
(10) Before an appraiser authorizes the removal of a motor vehicle from one location to
another, the consent of the consumer shall be obtained.
(i) The need for consent of the consumer may not be necessary for initial removal of the
motor vehicle from the scene of an accident.
(ii) An appraiser authorizing removal of a motor vehicle to a salvage yard shall inform
the salvor in writing that possession is merely for safekeeping purposes and that the
salvor does not have an ownership right to the motor vehicle, its parts or accessories,
until a certificate of title is received indicating that ownership has been transferred.
(11) Personal inspection of damaged property by the appraiser is required as follows:
(i) An appraiser may not secure or use repair estimates that have been obtained by the use
of photographs, telephone calls or in a manner other than personal inspection.
(ii) If a damaged motor vehicle is in the custody of a repair shop, an appraiser may not
take photographs of the damaged motor vehicle until after a legible copy of his appraisal
is left with the repair shop although the appraisal may contain certain open items.
(12) The responsibility of the appraiser shall include delivery and explanation of the
appraisal as follows:
(i) The appraiser shall provide a legible copy of the appraisal to the consumer.
62-7 (197407) No. 250 Sep. 95
(ii) At the request of an involved party or as is otherwise necessary, the appraiser shall
leave a copy of the appraisal with the selected repair shop. The appraiser shall discuss
the appraisal with the selected repair shop owner, its authorized representative or any
other parties as is reasonably necessary to insure that the actual costs of repairs are
adequately covered in the appraisal.
(iii) Upon the unsolicited request of the consumer, an appraiser shall provide the names
and addresses of auto body shops, garages or repair shops within a reasonable distance of
where the motor vehicle is located and where work will be done in accord with the written
appraisal.
(13) An appraiser shall promptly reinspect damaged vehicles prior to the repairs in
questions: when supplementary allowances are requested by repair shops or when the amount
or extent of damages is in dispute, or both.
(14) A provision of the act or this chapter may not be construed as intended to prohibit
or limit the subsequent appraisal or reappraisal of damage by different licensed
appraisers, if such is desired by any of the involved parties.
Authority
The provisions of this section 62.3 issued under section 10 of the Motor Vehicle Physical
Damage Appraiser Act, the act of December 29, 1972 (P.L. 1713, No. 367) (63 P.S. section
860); amended under the Motor Vehicle Physical Damage Appraiser Act (63 P.S. sections 851
- 863),
Source
The provisions of this section 62.3 amended through August 17, 1984, effective August 18,
1984, 14 Pa.B. 3032; amended July 21, 1995, effective July 22, 1995, 25 Pa.B. 2884.
Immediately preceding text appears at serial pages (188533) to (188538).
section 62.4. Sanctions for violation.
(a) The Commissioner may deny initial issuance of, suspend, revoke or refuse to renew an
appraiser's license for any cause specified in the act, or this chapter, or for any of the
following reasons:
(1) For cause for which issuance of the license could have been refused had it been
existent and been known to the Commissioner.
(2) If the licensee wilfully violates, or fails to comply with or knowingly participates
in the violation of or failure to comply with the act, or this chapter or another rule or
regulation promulgated thereunder.
(3) If the licensee has obtained or attempted to obtain a license through wilful
misrepresentation or fraud, or has failed to pass an examination required under this act.
62-8 (197408) No. 250 Sept. 95 Copyright © 1995 Commonwealth of Pennsylvania
(4) If the licensee has, with intent to deceive, materially misrepresented the terms or
effect of an insurance contract; or has engaged or is about to engage in a fraudulent
transaction.
(5) If the licensee has been convicted, by final judgment, of a felony.
(6) If in the conduct of his affairs under the license, the licensee has shown himself to
be, and is so deemed by the Commissioner, incompetent or untrustworthy, or a source of
injury and loss to the public.
(b) Every order suspending a license shall specify the period during which suspension will
be effective, which may in no event exceed 12 months.
(c) The holder of a license which has been revoked or suspended shall immediately
surrender the license to the Commissioner at his request.
(d) The Commissioner may not reinstate the license or relicense a licensee or former
licensee whose license has been suspended, revoked or renewal refuse while the cause for
the suspension, revocation or refusal of the license persists.
(e) Except as otherwise provided in the act, actions of the Commissioner shall be taken
subject to the right of notice, hearing and adjudication, and the right to appeal
therefrom as provided by law.
(f) The license of an individual found in violation of this chapter or the act may be
suspended or revoked by the Commissioner. In addition, a person who violates this chapter
or the act may be guilty of a misdemeanor and upon conviction thereof, for each offense,
may be sentenced to pay a fine not exceeding $500, or to undergo imprisonment not
exceeding 1 year, or both.
62-9 (197409) No. 250 Sep. 95
|