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By Mr. Nyman of Hanover, petition (accompanied by bill, House, No. 1051) of Robert J. Nyman relative to regulating motor vehicle appraisals by insurance appraisers. Financial Services. |
The Commonwealth of Massachusetts
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PETITION OF:
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In the Year Two Thousand and Seven.
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Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION
1. Chapter 26, as appearing in the 2002 Official Edition, is hereby amended by
striking the eighteenth paragraph of section 8G and inserting in place thereof
the following:-
No insurer or appraiser or insurance agent shall require, suggest, request, or recommend that any appraisals or repairs should or should not be made in a specified registered repair facility or facilities authorized under section 34O of chapter 90 or otherwise, nor shall an insurer or appraiser use coercion or intimidation to cause appraisals or repairs to be made or not made, in any specified repair facility or facilities. Failure to comply with the provisions of the above paragraph will result in a fine of not less than $100.00 or more than $500.00 per incident and shall be payable to the board by the insurer. Any violations of this paragraph shall constitute a violation of chapter 176D of the General Laws and shall be enforced by the commissioner.
The
provisions of this section shall take effect upon passage.
SECTION
2. Chapter 26, as appearing in the 2002 Official Edition, is hereby amended by
striking the nineteenth paragraph of section 8G and inserting in place thereof
the following:-
Chapter 26 of the General Laws, as appearing in the 2000 Official Edition, is hereby amended in section 8G, by adding at the end of paragraph 19 the following:
The appraiser, representing the insurer, shall be required to negotiate in good faith, using the manual the supplement was prepared with. The repair shop may also require a completed supplementary appraisal at the time the vehicle is viewed. If so requested the repair shop must make available desk space, phone, calculator and manual used to prepare the supplement. The repair shop may, at it’s choosing, expedite the repair process by submitting a supplemental estimate electronically that includes digital photos along with other supporting documentation. Any such request must be reviewed by an appraiser duly licensed under this section and must be approved or denied within 24 hours of receipt. If the appraiser approves a supplemental request submitted in this manner, the insurer shall not be required to assign an appraiser to personally inspect the damage as required by 212 CMR 2.00. If the appraiser does not approve a supplement request submitted in this manner they shall state the reason in writing to the shop, and the claimant or insured, and shall be obligated to proceed in accordance with 212 CMR 2.00. Failure to comply with the provisions of this paragraph will result in a fine of not less than $100 or more than $500 per incident and payable to the board by the insurer. In addition, a violation of this paragraph shall be an unfair claims settlement practice in the business of insurance, in addition to those practices set forth in Section 9 of Chapter 176D.
SECTION
3. Section 34O of chapter 90 of the General Laws, as appearing in the Official
Edition, is hereby amended by striking out in the fourteenth paragraph the
words: “provided, however, that for at least seventy-five per cent of those
claims where the appraisal indicates that the cost of repairs will exceed four
thousand dollars and at least twenty-five per cent of those claims where the
appraisal indicates that the cost of repairs will be four thousand dollars or
less, a licensed auto damage appraiser shall re-inspect the vehicle following
completion of repairs and shall certify on the claim form that the work has
been completed in accordance with an appraisal made pursuant to said
regulations” and inserting in the place thereof the following:-
provided, however, that the commissioner may establish requirements for
re-inspection by licensed damage appraisers during or following the completion
of repairs. In cases where a completed work claim form is required, a licensed
auto damage appraiser, shall certify that the work has been completed in
accordance with an appraisal or repair order.
The provisions of this section shall take effect upon passage.
SECTION
4. Section 34O of chapter 90 of the General Laws, as appearing in the 2002
Official Edition, is hereby amended by striking in the fifteenth paragraph the
words “The commissioner may require any plan” and inserting in place thereof
the following words:- “The commissioner shall require any plan.”