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. Section 8G of chapter 26 of the General Laws, as appearing in the 2006 Official Edition, is hereby amended by striking out the eighteenth paragraph and inserting in place thereof the following paragraph:—
No appraiser or employees of an independent appraisal company, insurance company or any of its employees, agents or representatives, or insurance agents licensed under M.G.L. Chapter 175 Section 163A or employees of insurance agents 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 appraiser or employees of an independent appraisal company, insurance company or any of its employees, agents or representatives, or insurance agents licensed under M.G.L. Chapter 175 Section 163A or employees of insurance agents 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.
SECTION 2. Said section 8G of said chapter 26 of the General Laws, as so appearing, is hereby amended by striking out the nineteenth paragraph and inserting in place thereof the following paragraph: —
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 so appearing, is hereby amended by striking out, in lines 191 to 198, 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-fiver 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 place thereof the following words:— 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, which may include a repair shop appraiser, shall certify that the work has been completed in accordance with an appraisal or repair order.
SECTION 4. Said section 34O of said chapter 90, as so appearing, is hereby amended by striking out, in line 203, the word “may” and inserting in place thereof the following word:— shall
SECTION 5. The 18th paragraph of said section 34O of said chapter 90, as so appearing, is hereby amended by striking out clause (c) and inserting in place thereof the following clause:—
(c) No appraiser or employees of an independent appraisal company, insurance company or any of its employees, agents or representatives, or insurance agents licensed under M.G.L. Chapter 175 Section 163A or employees of insurance agents shall suggest, request or direct, in writing or verbally, that any claimant have repairs made in, or not in, any specific repair shop, or list of shops as authorized under this section.
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.