PROPOSED RULEMAKING
[31 PA. CODE CH. 62]
Motor Vehicle Physical Damage Appraisers
[29 Pa.B. 655] The Insurance Department (Department) hereby proposes to amend §§ 62.1--62.4 to read as set forth in Annex A. The Department is publishing the amendments as a proposed rulemaking. The Department proposes the amendments under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); section 320 of The Insurance Department Act of 1921 (40 P. S. § 443); and sections 1--14 of the Motor Vehicle Physical Damage Appraiser Act (63 P. S. §§ 851--863) (act).
Purpose
Chapter 62 (relating to motor vehicle physical damage appraisers) was adopted by the Department on December 28, 1973, and amended on May 10, 1974. The regulations were promulgated to clarify the licensing requirements and occupational standards for physical damage appraisers. The regulations were adopted prior to the enactment of the Regulatory Review Act (71 P. S. §§ 745.1--745.15). Consequently, the regulations were not subject to review by the Independent Regulatory Review Commission (IRRC). The purpose of this proposed rulemaking is to amend Chapter 62 to make it consistent with existing statutory language, to delete those provisions of the regulations which are duplicative of the act and to add additional language which enhances the act and which provides additional protections for consumers of this Commonwealth.
Explanation of Regulatory Requirements
Significant proposed amendments include the following:
The definition for ''motor vehicle'' in § 62.1 (relating to definition) has been amended to clarify that the definition does apply to trailers, but does not apply to nonmotorized vehicles such as bicycles or buggies. Definitions for the terms ''aftermarket crash part,'' ''nonoriginal equipment manufacturer (''Non-OEM'')'' and ''predamaged condition'' have been added to clarify new provisions to the chapter.
Section 62.2 (relating to licensing requirements) is proposed to be amended to include experience and competency standards for appraisers and also describe circumstances under which an application for an appraisers license may be denied, for example, a felony conviction. Similar regulatory standards currently exist for other Department licensees, including agents and brokers. Revisions also include the proposed deletion of subsections (a)--(m) as these are already requirements specified throughout the act, or which have otherwise been incorporated into the remaining provisions.
Section 62.3 (relating to applicable standards for appraisal) is proposed to amend for significant restructure to delete redundant language and include disclosure requirements.
Section 62.3(a)(1) and (2) is being proposed for deletion, as it is duplicative of provisions which are already specified in section 11 of the act (63 P. S. § 861). Section 62.3(a)(3), which prohibits the use of abbreviations or symbols to describe repair work, is being proposed for deletion as it has been an automotive repair industry standard to use abbreviations with definitions and, therefore, this language is found to be unnecessary. Moreover, section 11(b) of the act requires the appraisal be legible.
Section 62.3(b) has been revised to require a written disclosure which contains the following:
(1) The amount of the appraisal.
(2) A statement that any excess costs above the appraised amount may be the responsibility of the vehicle owner.
(3) A statement that there is no requirement to use any specific repair shop. The appraiser may provide the consumer with the names of at least two repair shops able to perform the repair in accordance with the appraisal.
(4) A description of repairs necessary to return the vehicle to its predamaged condition, including, but not necessarily limited to, labor involved, cost of all parts, necessary painting or refinishing, and all sublet work to be done. If there is a dispute regarding the cost of repairs to an insured's vehicle, the insured or the insurer may seek resolution through the invocation of the appraisal clause provision or other similar provision which provides a process for dispute resolution in the policy contract.
(5) specification of incidental charges including towing, protective care, custody, storage, battery and tire replacement.
(6) Specification of applicable sales tax payable on the total dollar amount of the appraisal.
(7) The date, if any, after which an insurer will not be responsible for any related towing services or storage charges and after which the charges will be the responsibility of the consumer.
(8) The location where the listed parts are available in a condition equivalent to, or better than, the condition of the replaced parts prior to the accident.
(9) If the appraisal includes Non-OEM aftermarket crash parts, a statement that the appraisal has been prepared based on the use of aftermarket crash parts supplied by a source other than the manufacturer of the motor vehicle, and that if the use of an aftermarket crash part voids the warranty on the original part, the aftermarket crash part shall have a warranty equal to or better than the warranty on the original part.
Generally, the purpose of the disclosure requirement is to remove any uncertainty for consumers of this Commonwealth and fully apprise them of their rights and responsibilities under the act. In particular, the consumer is expressly advised that there is no requirement to use any specific repair shop. However, the disclosure also assists consumers by permitting the appraiser to provide the names of repair shops able to perform the repairs in accordance with the appraisal.
Section 62.3(c) is being proposed for deletion in its entirety as it is duplicative of provisions already specified in section 11 of the act, or which have otherwise been made part of the disclosure requirements.
Section 62.3(d) now appears as § 62.3(c) and, with the exception of minor changes for clarity and structure, remains unchanged.
Section 62.3(e) now appears as § 62.3(d) and, with the exception of minor changes for clarity and structure, remains unchanged.
Section 62.3(f) now appears as § 62.3(e) and, in addition to minor changes for clarity and structure, has been modified to delete reference to specific guide sources (for example, Red Book, NADA Book). Rather, the Commissioner will now publish annually in the Pennsylvania Bulletin a listing of all approved guide sources.
Section 62.3(g) now appears as § 62.3(f) and is proposed for amendment to delete provisions which are redundant, and to make the remaining provisions consistent with the act. Subsection (g)(1)--(5) is proposed for deletion as it is duplicative of provisions specified in section 11(f)(1)--(5) of the act. Subsections (g)(6) and (7) is proposed for deletion as it is duplicative of provisions specified in section 11(g)(1) and (2) of the act. Subsection (g)(8) and (9) (relating, in part, to prohibitions against appraisers recommending or referring customers to specified shops) is proposed for amendment so that it more appropriately conform to section 11(d) of the act, which only specifies that an appraiser may not ''require'' that repairs be made in any specified shop. The prohibition against an appraiser requiring the use of a specified shop has now been made part of the disclosure requirement in § 62.3(b)(1). The remainder of § 62.3(g)(9) has been renumbered as § 62.3(f)(1) to reflect the correct sequence as a result of the deletion of subsection (g)(1)--(9). Subsection (g)(10) has been renumbered as § 62.3(f)(2) and reflects only minor changes for structure and clarity. Subsection (g)(11), (12)(i) and the first sentence of (12)(ii) is proposed for deletion as it is duplicative of provisions specified in section 11(b) and (c) of the act. The remaining portion of subsection (g)(12)(ii) has now been renumbered as § 62.3(f)(3) and reflects only minor changes in language. Subsection (g)(12)(iii) is being deleted as it has been replaced with the disclosure requirement in § 62.3(b)(9). Subsection (g)(13) is being proposed for deletion as it is duplicative of section 11(e) of the act. Finally, § 62.3(g)(14) is proposed for deletion as it is found to serve no purpose and does not otherwise enhance the provisions of the act.
Section 62.3(g) has been added to notify appraisers that penalties for violations of the act and its regulations are set forth in the act.
Section 62.4 (relating to sanctions for violations) is being proposed for deletion in its entirety as it is duplicative of sections 5--7 and 9 of the act (63 P. S. §§ 855--857 and 859).
External Comments
The Pennsylvania Collision Trade Guild, the Automotive Service Association of Pennsylvania and Insurance Federation of Pennsylvania were contacted regarding issues arising out of the existing regulations. The responses received were reviewed and taken into consideration during the review of these regulations.
Fiscal Impact
The proposed amendments will have no impact on costs associated with the Department's licensing of physical damage appraisers. The proposed amendments may impose some additional costs on physical damage appraisers and insurers associated with revising existing appraisal forms and procedures to incorporate the proposed disclosure requirements. The proposed amendments have no impact on costs to political subdivisions. There are no costs to the general public associated with this proposed amendments.
Paperwork
The proposed amendments impose no additional paperwork requirements on the Department or the general public. Physical damage appraisers and insurers will have to revise existing appraisal forms to include the proposed disclosure requirements.
Persons Regulated
The proposed amendments apply to all physical damage appraisers licensed to do business in this Commonwealth.
Contact Person
Questions or comments regarding the proposed rulemaking may be addressed in writing to Peter J. Salvatore, Regulatory Coordinator, 1326 Strawberry Square, Harrisburg, PA 17120 within 30 days following the publication of these proposed amendments in the Pennsylvania Bulletin.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), the Department submitted a copy of these proposed amendments to IRRC and to the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition to submitting the proposed amendments, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of that material is available to the public upon request.
Under section 5(g) of the Regulatory Review Act, if IRRC has objections to any portion of the proposed amendments, it will notify the Department within 10 days of the close of the Committees' review period. The notification shall specify the regulatory review criteria which have not been met by that portion. The Regulatory Review Act specifies detailed procedures for the Department, the Governor and the General Assembly to review these objections before final publication of the amendments.
M. DIANE KOKEN,
Insurance CommissionerFiscal Note: 11-149. No fiscal impact; (8) recommends adoption.
Annex A
TITLE 31. INSURANCE
PART II. AUTOMOBILE INSURANCE
CHAPTER 62. MOTOR VEHICLE PHYSICAL DAMAGE APPRAISERS § 62.1. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
* * * * * Aftermarket crash part--A replacement for any of the nonmechanical sheet metal or plastic parts that generally constitute the exterior of the motor vehicle, including inner and outer panels.
Appraisal--A written monetary determination of damage incurred [by] to a motor vehicle when the making of such a determination is assigned in order [to fix the value of insurance claims] to return the vehicle to its condition prior to the damage in question. Appraisals [shall] include [a determination whether] determinations made by the insurer, its employes, its agents or related entities or [made by another individual] individuals or [entity otherwise] entities assigned to make a determination.
* * * * * Motor vehicle--Any motorized device, including a trailer attached thereto, in, upon or by which a person or property is or may be transported or drawn upon a public highway.
Nonoriginal equipment manufacturer (''Non-OEM'') aftermarket crash part--An aftermarket crash part not made for or by the manufacturer of the motor vehicle.
Predamaged condition--The condition of the motor vehicle just prior to the damage in question incurred.
§ 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 any 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 shall first establish 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 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.
(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 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. § 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. Any 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.]
In addition to the requirements in sections 3, 4, 8 and 11 of the act, to qualify to take the examination required for appraisers, an applicant shall establish competency to fulfill the responsibility of being an appraiser.
(1) Competency may be demonstrated by providing written documentation of one of the following:
(i) A minimum of 6 months continuous experience within the last 3 years at an occupation, such as body repair, that directly involves the estimation of physical damage to motor vehicles.
(ii) Successful completion of education or training related to appraising motor vehicle physical damage taken within the last 3 years.
(2) The applicant shall provide additional information experience, education or training to the Commissioner or a designee upon request.
(b) An application for licensing may be denied for any of the following:
(1) The applicant has provided incorrect, misleading or incomplete answers to interrogatories on forms incidental to the application for a license.
(2) The applicant has been denied a license by the Department or has had an existing license revoked, suspended or not renewed by an insurance regulatory authority in another state, territory or possession of the United States, or in the District of Columbia, or the Canadian provinces.
(3) The applicant does not possess the professional competence and trustworthiness required to engage in conducting motor vehicle appraisals. This determination will be made by the Department.
(4) A showing that, within 5 years prior to applying for a license under the act, an applicant has pleaded guilty, entered a plea of nolo contendere or has been found guilty of a felony in a court of competent jurisdiction, or has pleaded guilty, entered a plea of nolo contendere, or been found guilty of criminal conduct which relates to the applicant's suitability to conduct motor vehicle appraisals. If applicable, applicants shall also comply with the insurance-related provisions in sections 320 and 603(a) of the Violent Crime Control and Law Enforcement Act of 1994 (18 U.S.C.A. §§ 1033 and 1034).
(i) Examples of criminal violations which the Department may consider related to the applicant's suitability to engage in the business of an appraiser include unlawful practices, embezzlement, obtaining money under false pretenses, conspiracy to defraud, bribery or corrupt influence, perjury or false swearing, unlicensed activity or a criminal offense involving moral turpitude or harm to another.
(ii) Examples of violations or incidents which the Department will not consider related to the applicant's suitability to engage in the business of an appraiser are all summary offenses, records of arrests if there is no conviction of a crime based on the arrest, convictions which have been annulled or expunged or convictions for which the applicant has received a pardon from the Governor.
(5) The applicant has unpaid and overdue amounts, including, fees and civil penalties, owing to the Department.
§ 62.3. Applicable standards for appraisal.
(a) The appraisal [statement] shall [adhere to the following form:] be signed by the appraiser before the appraisal is submitted to the insurer, the consumer or another involved party.
[(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 any other 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] In addition to the requirements in the act, the appraisal shall contain a written disclosure which includes the following:
(1) The dollar amount of the appraisal.
(2) A statement that excess costs above the appraised amount may be the responsibility of the vehicle owner.
(3) A statement that there is no requirement to use any specific repair shop. The appraiser may provide the consumer with the names of at least two repair shops able to perform the repair in accordance with the appraisal.
[Items] (4) A description of repairs necessary to return the vehicle to its predamaged condition [prior to the damage in question], including[, but not necessarily limited to] labor involved[;], cost of all parts, 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 matters incidental to repair of the incurred damage.] If there is a dispute regarding the cost of repairs to an insured's vehicle, the insured or the insurer may seek resolution through the invocation of the appraisal clause provision or other similar provision which provides a process for dispute resolution in the policy contract.
[(2) A clear indication of the cost or dollar amount value of all 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.]
(5) Incidental charges including towing, protective care, custody, storage, battery and tire replacement.
(6) Applicable Sales Tax payable on the total dollar amount of the appraisal.
(7) The date, if any, after which an insurer will not be responsible for related towing services or storage charges and after which the charges will be the responsibility of the consumer.
(8) The location where the listed parts are available in a condition equivalent to, or better than, the condition of the replaced parts prior to the accident.
(9) If the appraisal includes Non-OEM aftermarket crash parts, a statement that the appraisal has been prepared based on the use of aftermarket crash parts supplied by a source other than the manufacturer of the motor vehicle, and that if the use of an aftermarket crash part voids the warranty on the original part, the aftermarket crash part shall have a warranty equal to or better than the warranty on the original part.
(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)] (c) In the appraisal of salvage value, the following [standards] standard shall be used:
(1) If the salvage value of the vehicle being appraised is known or could reasonably be [found out] determined, the appraiser shall [inform] advise the consumer in writing 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] If the salvage value is listed, the appraiser shall [inform] advise the consumer in writing of the name and address of each salvage [buyer] bidder, 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] the owner's representative, this subsection dealing with salvage value [need not be complied with] is inapplicable.
[(e) The following standards shall be used regarding the betterment of the vehicle:
(1)] (d) An appraisal for the repair of the motor vehicle [will] shall 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)] predamaged condition. If the consumer [is insistent upon] requests the use of [new] parts [rather than repair] other than those listed on the appraisal, or otherwise wishes 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 its predamaged 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:]
(e) The appraised value of the loss shall be the replacement value of the motor vehicle if the cost of repairing a motor vehicle exceeds 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.
(1) Under this subsection, replacement value under the policy provisions covering the total loss of a motor vehicle including an unrecovered motor vehicle shall be determined by 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, P. O. Box 7800, Costa Mesa, California 92628, telephone (800) 622-6232), or any similar source of information] provided by guide sources approved by the Commissioner. A listing of approved guide sources shall be published once a year in the Pennsylvania Bulletin. The appraised value shall be adjusted for equipment and mileage, less the cost of repair of damage which preexisted the accident in question. [There may be no] No other deductions may be taken 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. The appraiser shall specify, in writing, the location of the vehicle of like kind and quality.
[(3)] (2) If the motor vehicle is listed in [any] at least two [of the sources authorized by paragraph (2)(i), including older car publications] guide sources approved by the Commissioner, the replacement value shall be calculated by the guide source method or by the actual cost method, as described in paragraph [(2)] (1)(i) and (ii). 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)] (3) If the motor vehicle is not listed in [any] at least two of the sources authorized by paragraph [(2)] (1)(i), [including older car publications,] or if the vehicle differs materially from the average vehicle because of factors not considered in the guide sources, for example, antique or classic cars, vehicles 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)] (1)(i) and (ii). 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)] (4) ***
[(6)] (5) The licensed appraiser's [Total Loss Evaluation Report] 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)] (6) The licensed appraiser's file shall show the method used to determine the [more accurate] replacement value in a given locality.
[(8) A](7) The appraiser is responsible for ensuring that a copy of the total loss evaluation [sheet shall] report be [given] sent within 5 working days to the consumer by the appraiser [or by the insurer within 5 working days] after the appraisal is completed. If [an offer of settlement] a settlement offer is [made] extended before the consumer receives the total loss evaluation [sheet] report, the consumer shall be [verbally] advised of the total loss evaluation report's contents [thereof] and of [his] the consumer's right to receive a copy within 5 days after its completion.
[(g) The general standards of behavior of an appraiser] (f) In addition to the requirements in section 11 of the act (63 P. S. § 861), 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 judgment 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, and failure of the parties to cooperate) render the inspection impossible.
(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] 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 location or by a particular individual or business.
(10) Before an appraiser authorizes] (2) Obtain the consent of the consumer before authorizing 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] salvager in writing that possession is merely for safekeeping purposes and that the [salvor] salvager 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
(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]
(3) Discuss the appraisal with [the selected] an authorized representative of the repair shop [owner its authorized representative] which shop is selected by the consumer or any other [parties] party as is reasonably necessary to [insure] demonstrate that the actual costs of repairs are adequately covered in the appraisal.
[(iii) Upon the unsolicited request of the consumer, an appraiser shall provide 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 question: 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.]
(g) The penalties for violating the act and its regulations thereunder are set forth in sections 5, 6, 7 and 9 of the act.
§ 62.4. [Sanctions for violation] (Reserved).
[(a) The Commissioner may deny initial issuance of, suspend, revoke or refuse to renew any appraiser's license for any cause specified in the act, or this chapter, or for any of the following causes:
(1) For any 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 willfully 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 willful misrepresentation or fraud, or has failed to pass any examination required under this act.
(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 any 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 refused 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.]
[Pa.B. Doc. No. 99-186. Filed for public inspection February 5, 1999, 9:00 a.m.]
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