THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL No. 1250
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
Amending the act of December 29, 1972 (P.L.1713, No.367),
entitled "An act concerning motor vehicle physical damage
appraisers; providing for the licensing of persons engaged in
appraising physical damages to motor vehicles; fixing fees
and prescribing unlawful acts and penalties," adding and
amending certain definitions; further providing for fees,
penalties and licenses and for the duties of appraisers; and
providing for duties of the Attorney General.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of December 29, 1972
(P.L.1713, No.367), known as the Motor Vehicle Physical Damage
Appraiser Act, is amended to read:
Section 2. Definitions.--As used in this act:
"Actual cost" means the estimate of damages to repair a motor
vehicle and to restore it to pre-accident condition based on the
proper use of an objective industry-wide accepted repair guide
manual for parts, labor, refinishing and paint and body -
19 materials that is used by the repair shop selected by the
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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
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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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