1

Hamilton, Hailey (OIC)

From: Brian Kreger <bk@kregerbeeghly.com>Sent: Monday, July 17, 2017 11:46 AMTo: OIC Rules Coordinator; Kreidler, Commissioner (OIC)Cc: 'Brian Kreger'; 'Steven Beeghly'Subject: Comments on OIC Matter No. R 2017-04 (CR-101 filed June 16, 2017)Attachments: OIC Matter No. R 2017-04 .pdf

TO: Stacy Middleton, Rules Coordinator AND TO: Mike Kreidler, Insurance Commissioner  Attached are my comments relating to the Office of the Insurance Commissioner Matter No. R 2017‐04 (CR‐101) regarding possible rule making on the subject of Adjuster Licensing Requirements.  The original of this Memorandum has been sent to Stacy Middleton (at OIC PO BOX 40258) by regular U.S. Postal Delivery.  I appreciate the opportunity to offer comments on this important rule making effort.  And, I also wish to express my thanks and appreciation to Stacy for taking the time to discuss the CR‐101 Preproposal Statement of Inquiry.  My comments in the attached Memorandum are an extension of that conversation. Please feel free to call if you would like to discuss or clarify anything in contained in these comments. Best regards,  Brian    Brian F. Kreger Kreger Beeghly, PLLC Attorneys 999 Third Avenue Suite 3000 Seattle, WA 98104  Office: 206‐829‐2757 Mobile: 206‐931‐5594 E‐Mail: bk@kregerbeeghly.com 

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IRS CIRCULAR 230 DISCLOSURE: To ensure compliance with applicable requirements of the Internal Revenue Service, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.

 

---= KREGER BEEGHLY, PLLC =-MEMORANDUM

TO: Mike Kreidler, Insurance Commissioner, State of Washington

Stacy Middleton, Rules Coordinator, Office of the Insurance Commissioner

FROM: Brian Kreger, Partner, Kreger Beeghly, PLLC

RE: CR-101 INSURANCE COMMISSIONER MATIER No. R 2017-04

Possible rule making: Adjuster Licensing Requirements

INTRODUCTION

Thank you for the opportunity to offer comments regarding the Preproposal Statement of Inquiry

(Statement), referenced above, published by the Office of Insurance Commissioner (OIC) on June 16, 2017

regarding a possible rule or regulation relating to Adjuster Licensing Requirements.

The Statement indicates that a proposed rule would likely create new and amend existing sections of WAC

284-17-123 to accomplish two objectives:

• To clarify education alternative to adjuster training, and

• To establish the Office of Insurance Commissioner's interpretation of the breadth of activities

to be licensed under the definition of adjuster.

The Statement does not contain a draft of a proposed rule or regulation. However, the Statement does

note that this rulemaking is related to the Matter of Michael R. Marinelli and the Insurance Appraisal

Services, OIC Docket No. 16-0155. Because of this reference to the matter in which the Ole's hearing

officer concluded that auto damage appraisers fall under the statutory definition of adjuster which would

require licensing as an adjuster, my comments will be based on an assumption that the OIC intends to

adopt a rule or regulation that would establish clear guidelines for identifying (a) those activities or

responsibilities that would be considered activities of an insurance claims adjuster which would require

an adjuster's license under RCW 48.17.010, and (b) those activities that would not be considered adjuster

activities and would not require an adjuster's license, specifically, those activities that are customarily

engaged in by damage appraisers.

APPLICABLE ADJUSTER LICENSING LAWS AND REGULATIONS

RCW 48.17.010 defines "adjuster" as a person who investigates or reports to the adjuster's principal

relative to "claims arising under insurance contracts" on behalf of either the insurer or the insured.

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RCW 48.17.380 states that the insurance commissioner licenses as an adjuster only an individual who,

among other necessary qualifications, "has had experience or special education or training with reference

to the handling of loss claims under insurance contracts."

WAC 284-17-123 requires individual applicants for a resident adjuster license to receive special training

in all adjustment activities and responsibilities. This regulation also mandates that the activities of an

adjuster trainee must be restricted to "participation in factual investigation and tentative closing of

losses."

Highlighted copies of RCW 48.17.010, RCW 48.17.380, and WAC 284-17-123 are attached as Appendix A.

DISCUSSION: ADJUSTING AND CLOSING LOSSES; APPRAISING OR ESTIMATING DAMAGE

Standing alone, the definition of "adjuster" under RCW 48.17.010 probably is not the kind of clear and

unambiguous statement of law that either an insurance regulator or the insurance industry would like to

rely on to guide their respective regulatory or business activities. However, the Insurance Commissioner

is authorized to adopt rules to provide an effective administration of that law. To that end, the OIC can

find some reasonable guidance for an effective rule or regulation in the language of RCW 48.17.380 and

WAC 284-17-123, as well as other outside resources.

The wording of RCW 48.17.380 empowers the Insurance Commissioner to issue an adjuster license only

to an individual who has education, experience or training in the "handling of loss claims under insurance

contracts." And, WAC 284-17-123 makes it clear that an individual who desires to be licensed as an

adjuster must be trained in "factual investigation and tentative closing of losses."

I believe it is important to focus on the specific phrase, "the handling of loss claims" in RCW 48.17.380,

and the phrase "factual investigation and tentative closing of losses" in WAC 284-17-123. Under RCW

48.17.380, the Insurance Commissioner can license an individual as an adjuster only if that individual has

experience, special education, or training in the handling of losses under an insurance contract. And, WAC

284-17-123 specifies that, for an individual to be licensed as an adjuster, that person must be trained in

the factual investigation and tentative closing of losses.

An insurance claims adjuster must be educated, experienced, and trained in the investigation of the facts

of a loss. And, insurance claims adjusters must also receive education and training regarding the

provisions of an insurance contract so that they can make necessary decisions regarding coverage for a

loss, potential liability relating to a loss, and the amount of a covered loss that will be offered as settlement

of a claim - all these activities to be accomplished in order to close that loss under the insurance contract.

While, the activities of an insurance claims adjuster could, if appropriate, include an evaluation of the

extent of damage, that function is not necessarily a part of an adjuster's adjusting and "closing" a loss.

Appraisers, on the other hand, do not review insurance contracts and do not need to understand the

provisions of an insurance contract regarding coverage or liability in order to make an appraisal or

estimate of the value of property after it has been damaged or when a loss has occurred. Unlike insurance

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claims adjusters, appraisers do not make those insurance-related determinations when assessing damage

to property.

Recently, I experienced this very situation first-hand: after my vehicle was damaged in an accident, the

claims adjuster assigned to my claim relied on the services of a damage appraiser/estimator (not an

insurance adjuster) to help determine the final value of the loss to my vehicle. The appraiser did not get,

nor did he need, a copy of my insurance policy and did not, nor was he authorized to, consider coverage,

fault, or liability in making his damage and repair estimate. He was engaged only to assess damage, and

he gave his damage and cost of repair opinion to the claims adjuster who then settled and closed my loss

claim. Closing losses under insurance contracts is precisely what insurance claims adjusters do. And, that

was precisely the process followed with my own loss claim under my insurance policy.

As I noted above in reference to my own recent vehicle loss claim, damage appraisers, even those engaged

by insurance claims adjusters, do not close losses. They only assess or estimate the extent of the damage

to the property involved. Unlike adjusters, appraisers do not close losses and are not given authority or

responsibility to close a loss under an insurance contract, unless that appraiser also happens to be licensed

as an adjuster. And, this is the case irrespective of the type of property or damage regarding which an

appraiser has the necessary expertise and experience to assess damage and value. In Washington,

appraisers or estimators assess or measure property loss in any number of situations, for example: the

amount of damage to a vehicle involved in an accident; the extent of storm or fire damage sustained by a

building or other structure; the fair market value of a piece of lost or stolen personal property such as

jewelry or art; and many other types of property damage or loss evaluations.

As RCW 48.17.380 and WAC 280-17-123 strongly suggest, only after having been adequately trained,

experienced, and/or educated, will an individual licensed as an adjuster be given the authority and

responsibility to "close a loss." The very wording in those sections of Washington insurance code and

regulations provide significant guidance for the Insurance Commissioner to craft rules and regulations

which can (a) specify and list those activities related to closing a loss under an insurance contract that

constitute the work of an insurance adjuster and require licensure under RCW 48.17.010, and (b) list and

differentiate those activities that are not the exclusive work of an insurance claims adjuster and do not

require an adjuster license, although those activities may possibly, but not necessarily, relate to an

insurance claim.

In this regard, I believe the Washington Pattern Jury Instructions (WPI) may also offer further guidance

for the Insurance Commissioner in the drafting of new rules or regulations relating to adjusters and

appraisers. The WPI contain several instructions for a jury to use when they are called upon to determine

the measure of damages a party is claiming as damages in litigation. For example, WPI 30.10 states, in

part, that the measure of damages is, "The reasonable value of necessary repairs to any property that was

damaged plus the difference between the fair cash market value of the property immediately before the

occurrence and its fair cash market value after it is repaired." This WPI and similar WPI instructions are

based on RCW 4.56.250(1)(a), a provision in Washington's civil procedure code, that allows for the

recovery of economic damages which include "objectively verifiable monetary losses, including ... loss of

use of property, cost of replacement or repair .. . "

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I respectfully submit that the work of appraiser (or estimator) is precisely what that law intends, namely,

to provide "objectively verifiable monetary losses" to be used by an insurance claims adjuster in the

factual investigation and closing of losses under insurance contracts. And, I further submit that this

appraiser or estimator work is not the same as, nor does not rise to the level of, "closing losses under

insurance contracts." That is the exclusive responsibility of the claims adjuster. This was exactly my

experience with respect to my own recent loss claim.

COMMENTS AND RECOMMENDATIONS FOR PROPOSED RULE

I respectfully request that the Insurance Commissioner's new rules or regulations being considered under

this CR-101 Statement should set forth, with some fair detail, what the respective activities and functions

of both an insurance claims adjuster and a damage appraiser are, how those activities differ, and how the

activities of an adjuster and an appraiser can interact for the benefit of consumers.

In the OIC's website section on automobile insurance, the OIC already informs consumers about steps to

take when filing a claim, including talking with the insurance adjuster about the type of parts that may be

used in the repair of a damaged vehicle. The OIC also informs consumers that they are entitled to engage

the services of an appraiser to assist in determining the value of a loss. The OIC specifically advises

consumers: "If you and your insurer can't agree on your car's value you have the right to hire an appraiser

via the appraisal provision in your auto policy. This provision allows you and the company to each hire

appraisers."

New rules or regulations that clarify the respective duties and functions of insurance claims adjusters and

damage appraisers would provide an opportunity for the OIC to revise its website (as well as using other

means of publication by the OIC) to provide consumers with more detailed information about the

Commissioner's new rules or regulations that set forth a definitive explanation of the different, yet

interconnected, activities and functions of insurance claims adjusters and damage appraisers, and how

adjusters and appraisers can work together to assist a consumer in the prompt settlement and closure of

a claim - not just automobile claims, but any kind of "loss under an insurance contract." And, any such

OIC consumer advisory could also remind the public (and the industry) that current regulations,

specifically, WAC 284-30-330, prohibit an insurer from delaying appraisals or failing to make a good faith

effort to settle a claim before exercising the insurance contract right to an appraisal.

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FEATURES OF NEW ADJUSTER/APPRAISER REGULATIONS

ADJUSTER

I suggest that any new rule or regulation formulated under the referenced CR-101 Statement should

include a recitation of specific activities that are fundamentally the responsibility of an insurance claims

adjuster. Those listed activities would include, but not necessarily be limited to, the following activities,

duties, and/or responsibilities of an adjuster:

• Having necessary education, training, and/or experience in the investigation of all aspects of loss

claims under an insurance contract, including the ability to make a tentative or preliminary

determination regarding liability, fault, and/or whether a loss is covered under the policy.

• Being familiar with and knowledgeable of the policy provisions regarding coverage, limits, and

liability aspects of the insurance contract under which a loss or claim is presented.

• Having authority from the insurer or the insured to recommend and negotiate a settlement or closing of a loss claim on behalf of either the insurer or the insured. (This matches the Ole's

description of adjuster in the OIC's "A consumer's insurance glossary.")

• Having authority from either the insurer or the insured to prepare and sign all necessary

documents relative to an offer of settlement and/or closing of a loss claim under an insurance

contract.

• Having necessary authority from or on behalf of the insurer or the insured to enter into final

agreements regarding the payment of a loss claim under an insurance contract, and also to obtain

from the insurer and/or deliver to the insured the agreed payment.

• Optional: Having experience and training in the assessment of damage to the property which is

the subject of the loss claim under an insurance contract, and/or, having authority from the

insurer or the insured to hire or engage the services of an appraiser or estimator of the loss which

is the subject of the claim under the insurance contract.

APPRAISER

I further suggest that a separate rule or regulation should set forth those activities that would fall within

the function and duty of a damage appraiser, as well as those activities that are expressly prohibited from

being exercised by a damage appraiser, including:

• Having (or being able to demonstrate) the necessary experience, training, and/or education regarding the type and nature of the property that has sustained damage and which is to be

appraised for pre-damage and post-damage value.

• The evaluation of damage to the subject property and the determination or estimate of the cost

to repair such property.

• The evaluation of the fair cash market value of the subject property before the damage to the

property compared with the fair cash market value of the subject property immediately after the damage was incurred.

• Appraisal shall include, but not be limited to: the physical examination of the subject damaged

property; the evaluation of the extent of such damage; the estimate of the cost to repair; a

determination regarding the reasonable reparability of the damaged property; the rendering of

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a (written) report or opinion as to the extent of damage, value of the property, and reasonable

likelihood of repair; appearing and offering opinions related to the findings of an appraisal in any

loss claim contested in litigation or arbitration proceedings, and also in any matter brought under

the appraisal clause of any insurance contract.

• Appraisal shall not include: rendering an opinion regarding coverage, limits of liability, or rights

of parties under an insurance contract; suggesting, recommending, or negotiating any settlement

or closing of a loss claim under a contract of insurance; rendering an opinion as to the value of

any proposed settlement offer to, by, or on behalf of either an insurer or an insured; executing

any claim settlement or closure documents for or on behalf of any insurer or insured.

FINAL COMMENTS AND ADDITIONAL COMMENT REGARDING POSSIBLE LEGISLATIVE SOLUTION

If the Insurance Commissioner's intent in this possible rule making regarding adjuster licensing

requirements is to correct the harm that has resulted from the hearing officer's ruling in the Marinelli

matter referred to in the Preproposal Statement of Inquiry, then I fully and wholeheartedly support this

rule making effort. The ruling in that matter has resulted in significant harm and risk of harm to countless

individuals and businesses in Washington state who provide valuable appraisal, estimating, and damage

assessment services to the consumers of this state. I personally prefer a solution through the Insurance

Commissioner's rule-making authority.

However, as I have tried to express in this memorandum, any new or amendatory regulations that relate

to insurance claims adjusters must also be fair and equitable to property damage appraisers, not just auto

damage appraisers, but all businesses and individuals who perform inspections, appraisals, estimates, and

valuations relating to damaged property. Although it is possible that most damage appraisal situations -

of any kind - may be or become a part of a loss claim under an insurance contract, it is essential that new

rules and regulations, especially in those cases, should identify and respect the distinct activities and roles

of both the insurance claims adjuster and the appraiser, and also recognize the valuable service each one

performs. Well-crafted rules and regulations can accomplish those objectives and also ensure continued

consumer benefits and protections.

If the proposed new rules or regulations cannot accomplish the solutions, benefits, and protections that I

would anticipate and have tried to express in these comments, then I would suggest to the Insurance

Commissioner that a long-term solution may be effected through appropriate legislation (a) to amend

those provisions of the Insurance Code relating to adjusters to clarify the activities and responsibilities of

insurance claims adjusters and distinguish the function and role of damage appraisers, and (b) to establish

a regulatory scheme to register damage appraisers in Washington. And, if such a legislative solution were

to be considered, I then suggest that a Washington law for the registration of damage appraisers could be

patterned after the Oregon law that requires the registration of vehicle damage appraisers. A similar

Washington law could, like Oregon's, be limited to the registration of auto damage appraisers, or could

be more general and apply to appraisers of all types of property.

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I have included as Exhibit B, copies of the relevant Oregon laws and regulations that apply to the

registration of vehicle appraisers. In Oregon, vehicle appraisers are registered and regulated by the

Department of Transportation; however, a similar Washington registration scheme could place regulation

under the OIC or another appropriate agency. If the Insurance Commissioner would want to pursue such

a legislative remedy in Washington, I would be willing to work with him and the OIC to support such a

measure and would work to muster support for this legislation from local and national appraiser trade

and industry groups.

CONCLUSION

Thank you again for the opportunity to comment on the Insurance Commissioners Preproposal Statement

of Inquiry, Matter No. R 2017-04, regarding possible rule making relating to adjuster licensing

requirements. I look forward to the next steps in this rule making effort and working with all in the OIC

who are involved in this effort.

Brian F. Kreger

July 14, 2017

c 2017 Kreger Beeghly, PLLC. All rights reserved.

Brian Kreger

206-829-2757

bk@kregerbeeghlv.com

KREGER BEEGHLY, PLLC A1TORNEYS

999 THIRD AVENUE, SurrE 3000 SEA1TLE, WA 981044088

7

Steven Beeghly

206-618-6110

sb@kregerbeeghly.com

APPENDIX A

RCW 48.17.010

Definitions.

The definitions in this section apply throughout this title unless the context clearly requires otherwise.

( 1) "Adjuster" means any person who, for compensation as an independent contractor or as an employee of an independent contractor, or for fee or commission, investigates or reports to the adjuster's principal relative to claims arising under insurance contracts, on behalf solely of either the insurer or the insured. An attorney-at-law who adjusts insurance losses from time to time incidental to the practice of his or her profession or an adjuster of marine losses is not deemed to be an "adjuster" for the purpose of this chapter. A salaried employee of an insurer or of a managing general agent is not deemed to be an "adjuster" for the purpose of this chapter, except when acting as a cro adjuster.

(a) "Independent adjuster" means an adjuster representing the interests of the insurer. (b) "Public adjuster11 means an adjuster employed by and representing solely the financial

interests of the insured named in the policy. (c) "Crop adjuster" means an adjuster, including (i) an independent adjuster, (ii) a public

adjuster, and (iii) an employee of an insurer or managing general agent, who acts as an adjuster for claims arising under crop insurance. A salaried employee of an insurer or of a managing general agent who is certified by a crop adjuster program approved by the risk management agency of the United States department of agriculture is not a "crop adjuster" for the purposes of this chapter. Proof of certification must be provided to the commissioner upon request.

RCW 48.17.380

Adjusters-Application form-Qualifications for license--Bond.

(1) Application for a license to be an adjuster must be made to the commissioner upon forms furnished by the commissioner.

(a) As a part of or in connection with the application, each resident applicant, and nonresident applicant designating Washington as the applicant's home state must furnish information concerning his or her identity, including fingerprints for submission to the Washington state patrol, the federal bureau of investigation, and any governmental agency or entity authorized to receive this information for a state and national criminal history background check, personal history, experience, business record, purposes, and other pertinent facts, as the commissioner may reasonably require. If, in the process of verifying fingerprints, business records, or other information, the commissioner's office incurs fees or charges from another governmental agency or from a business firm, the amount of the fees or charges must be paid to the commissioner's office by the applicant.

(b) A nonresident person holding an adjuster's license or equivalent in a state other than Washington that is the applicant's home state, or is designated as the applicant's home state, must comply with the requirements of this section, with the exception of the fingerprint requirement contained in (a) of this subsection.

11Appendix A

(2) Any person willfully misrepresenting any fact required to be disclosed in any application shall be liable to penalties as rovided by this code.

(3) The commissioner licenses as an adjuster only an individual or business entity which has otherwise complied with this code and the individual or responsible officer of the business entity has furnished evidence satisfactory to the commissioner that the individual or responsible officer of the business entity is qualified as follows:

(a) Is eighteen or more years of age; (b) Is a bona fide resident of this state, or is a resident of a state which will permit residents

of this state to act as adjusters in such other state; ( c) Is a trustworthy erson; ( d) Has had experience or special education or training with reference to the handling of loss

claims under insurance contracts, of sufficient duration and extent reasonably to make the individual or responsible officer of the business entity competent to fulfill the responsibilities of an adjuster;

( e) Has successfully passed any examination as required under this chapter; (f) If for a public adjuster's license, has filed the bond required by RCW 48.17.430, (g) If a nonresident business entity, has designated an individual licensed adjuster responsible

for the business entity's compliance with the insurance laws and rules of this state. ( 4) If an applicant's principal place of residence or principal place of business is located in a

state or province that does not have laws governing adjusters substantially similar to those of this state, the applicant may designate this state or another state or province in which the applicant is licensed and acts as an adjuster to be the applicant's home state for the purposes ohhis chapter.

(5) If the applicant designates this state or another state or province as the applicant's home state, to be eligible for licensure in this state, the applicant must have satisfied the requirements for licensure as a resident adjuster under the laws of the applicant's designated home state.

(6)(a) Each licensed nonresident adjuster, by application for and issuance of a license, has appointed the commissioner as the adjuster's attorney to receive service of legal process against the adjuster in this state upon causes of action arising within this state. Service upon the commissioner as attorney constitutes effective legal service on the adjuster.

(b) The appointment of the commissioner as attorney is irrevocable, binds any successor in interest or to the assets or liabilities of the adjuster, and remains in effect for as long as there could be any cause of action against the adjuster arising out of the adjuster's transactions in this state. The service of process must be accomplished and processed in the manner prescribed under RCW 48.02.200.

(7) The commissioner may require any documents reasonably necessary to verify the information contained in an application and may, from time to time, require any licensed adjuster to produce the information called for in an application for a license.

2 IA pp end ix A

WAC 284-17-123

Resident and nonresident adjuster licenses-Trainees.

(1) Applicants for a resident adjuster license may satisfy the experience or special training requirements ofRCW 48.17.380(4) by employment as a "trainee" for a period of not fewer than six months.

(a) Each trainee must be supervised by a resident licensed adjuster. Trainees must receive training in all adjustment activities and responsibilities. Activities of the trainee must be restricted to participation in factual investigation and tentative closing of losses. All adjusting transactions must be completed in the name of the supervising licensed adjuster who must review, confirm, and be responsible for all acts of the trainee. Compensation of a trainee must be on a salary basis only.

(b) Any person employing trainees must immediately advise the commissioner and provide the exact date that employment of the trainee begins and ends. The employer must submit an application completed by each trainee and one fingerprint card.

( c) Trainees are eligible to take the adjuster's examination required by the commissioner after completing no fewer than six months as a trainee.

( d) The maximum period a person may be designated as a trainee is one nine-month period. ( e) Any violation of this section or a violation of any provision of the insurance code subjects

both the trainee and the supervisory adjuster to penalties of the code. (2) Applicants who are not residents of Washington may be licensed as nonresident adjusters

as follows: (a) A nonresident adjuster license will be issued ifthe applicant has and maintains an adjuster

license in good standing in his or her home state and the home state reciprocates and licenses Washington adjusters as nonresident adjusters.

(b) If the home state of an applicant for an adjuster license does not issue an adjuster license, the applicant must pass this state's written adjuster examination.

( c) If the home state of an applicant for a nonresident adjuster license does not issue an adjuster license but he or she has an active adjuster license as a nonresident in a state other than Washington that requires passing an examination, and he or she has taken and passed the examination and is in good standing with that state, the nonresident adjuster is deemed by the commissioner to have satisfied the examination required for adjusters in this state. [Statutory Authority: RCW 48 02.060, 48. 17.005. WSR 09-02-073 (Matter No. R 2008-06), § 284-17-123, filed 1/6/09, effective 7/1/09. Statutory Authority: RCW 48 02.060. WSR 90-04-060 (Order R 90-1), § 284-17-123, filed 2/2/90, effective 3/5/90.]

3IAppendix A

APPENDIXB

OREGON REVISED STATUTES RE: VEHICLE APPRAISERS

From Title 59 OREGON VEHICLE CODE Chapters 801 and 819

VEHICLE APPRAISERS 801.592 "Vehicle appraiser." "Vehicle appraiser" means an individual who has been issued a vehicle appraiser certificate under ORS 819.480 and who, for consideration, issues opinions as to the value of vehicles. [2007 c.630 §3]

819.480 Vehicle appraiser certificate; rules. (1) A person who is issued a vehicle appraiser certificate by the Department of Transportation under this section is qualified to appraise any vehicle, including vehicles for sale under ORS 819.210 and 819.215.

(2) The department shall establish rules to provide for issuance of vehicle appraiser certificates under this section. Rules adopted by the department under this section shall provide for all of the following:

(a) A method of ascertaining the qualifications and competence of individuals to conduct vehicle appraisals in accordance with the rules of the department and generally accepted methods of appraisal.

(b) A system for issuance of vehicle appraiser certificates to persons who qualify under the rules of the department.

( c) Procedures and grounds for revocation or suspension of vehicle appraiser certificates issued under this section if the department determines the person holding the certificate has violated the rules adopted by the department.

( d) A procedure for renewal of vehicle appraiser certificates issued under this section. (3) The department may establish rules to adopt educational requirements for issuance or

renewal of vehicle appraiser certificates. (4) Vehicle appraiser certificates issued under this section are subject to the following: (a) A certificate shall expire three years from the date of issuance unless renewed according

to the rules of the department. (b) The department shall not issue a vehicle appraiser certificate to a person until the person

has paid the fee for issuance of a vehicle appraiser certificate under ORS 822.700. ( c) The department shall not renew a vehicle appraiser certificate issued under this section

until the holder has paid the fee for renewal of a vehicle appraiser certificate under ORS 822. 700. [Formerly 819.230; 2009 c.371 §17]

819.482 Acting as vehicle appraiser without certificate; penalty. (1) A person commits the offense of acting as a vehicle appraiser without a certificate ifthe person does not hold a vehicle appraiser certificate issued under ORS 819.480 and the person, for consideration, issues an opinion as to the value of a vehicle.

(2) This section does not apply to: (a) A person who holds a vehicle dealer certificate issued or renewed under ORS 822.020 or

822.040 and who appraises vehicles in the operation of the vehicle dealer's business; (b) A person from another jurisdiction who holds a vehicle appraiser certificate requiring

qualifications substantially similar to qualifications required for the certification of a vehicle appraiser in this state;

ljAppendix B

(c) An insurance adjuster authorized to do business under ORS 744.505 or 744.515; or (d) A person licensed or certified to appraise real estate under ORS 674.310 and who

appraises the value of manufactured structures. (3) The offense described in this section, acting as a vehicle appraiser without a certificate, is

a Class A violation. [2007 c.630 §2]

822. 700 Certification fees. (1) Fee for issuance of dismantler certificates: (a) $800, for an original dismantler certificate covering a single place of business issued

under ORS 822.110; (b) $800, for a supplemental certificate for each additional place of business to be covered by

that certificate and operated under the same name; and ( c) $40, for each duplicate dismantler certificate issued under ORS 822.110. (2) Fee for renewal of dismantler certificate under ORS 822.125: (a) $800, for renewal of a dismantler certificate covering a single place of business; and (b) $800, for renewal of each supplemental certificate for each additional place of business to

be covered by the certificate and operated under the same name. (3) If a dismantler fails to pay a fee required under this section on or before the date the fee is

due, there shall be added as a late payment charge a fee of $150. (4) Fee for original issuance of vehicle dealer certificate under ORS 822.020: (a) $1,100, for a certificate covering a single place of business; (b) $350, for each additional place of business to be covered by the certificate and operated

under the same name; and (c) $30, for each corrected vehicle dealer certificate issued under ORS 822.040. (5) Fee for renewal of vehicle dealer certificate under ORS 822.040: (a) $1,100, for renewal of a vehicle dealer certificate covering a single place of business; and (b) $350, for each additional place of business to be covered by the certificate and operated

under the same name. ( 6) If a vehicle dealer fails to pay a fee required under this section on or before the date the

fee is due, there shall be added as a late payment charge a fee of $150. (7) Fee for show license issued under ORS 822.084, $50. (8) Fee for issuance of towing business certificate under ORS 822.205, $17 for each vehicle

used for towing or recovery purposes. (9) Fee for renewal of towing business certificate under ORS 822.210, $17 for each vehicle

used for towing or recovery purposes. (10) Fee for issuance of vehicle transporter certificate under ORS 822.310, $150. (11) Fee for renewal of vehicle transporter certificate under ORS 822.310, $150. (12) Fee for issuance of driver training instructor certificate under ORS 822.530, $100. (13) Fee for renewal of driver training instructor certificate under ORS 822.530, $100. (14) Fee for issuance of commercial driver training school certificate under ORS 822.515,

$200. (15) Fee for renewal of commercial driver training school certificate under ORS 822.515,

$200. (16) Fee for issuance of vehicle appraiser certificate under ORS 819.480, $100. (17) Fee for renewal of vehicle appraiser certificate under ORS 819.480, $100.

21Appendix B

[1983 c.338 §835; 1985 c.16 §421; 1985 c.459 §16; 1985 c.736 §6; 1987 c.261§10;1997 c.469 §10; 1999 c.593 §6; 2001 c.668 §5; 2003 c.655 §140; 2005 c.654 §16; 2007 c.630 §5; 2013 c.372 §2]

*****

From Title 56 OREGON INSURANCE CODE Chapter 742

742.466 Disputes over coverage for physical damage; independent al!eraisal; rules. (1) In the event of a dispute between the insurer and insured under a motor vehicle liability policy concerning coverage for physical damage, ifthe policy contains a provision authorizing the insured to obtain an independent appraisal by a competent and disinterested person of the physical damage, that provision shall apply. An independent appraisal conducted under this section shall be performed by a person who has been issued a vehicle appraiser certificate under ORS 819 .480 or a person who has been issued a vehicle appraiser certificate or license by another state or government body.

(2) When a motor vehicle liability policy contains a provision for resolving a dispute through appraisal of a motor vehicle insured under the policy, the insurer shall reimburse the insured for the reasonable appraisal costs if the final appraisal decision under the policy provision is greater than the amount of the insurer's last offer prior to the incurrence of the appraisal costs.

(3) If a motor vehicle liability policy does not contain a provision described in subsection (1) of this section, then notwithstanding any other provision of the policy, any resolution of the dispute shall be subject to rules adopted by the Director of the Department of Consumer and Business Services. [Formerly 743.840; 2009 c.65 §4; 2011 c.134 §1]

735-158-0000

OREGON ADMINISTRATIVE RULES

DEPARTMENT OF TRANSPORTATION, DRIVER AND MOTOR VEHICLE SERVICES DIVISION

DIVISION 158 -VEHICLE APPRAISERS

Vehicle Appraiser Certificate

(1) An applicant for a vehicle appraiser certificate or renewal under ORS 819.480 must submit the following to the OMV Business Regulation Section:

(a) A completed and signed OMV Application for Vehicle Appraiser Certificate (OMV Form 735-6610);

(b) All applicable fees; and

3IAppendix B

(c) Except as provided in section (2) of this rule, proof of two years combined work experience as a vehicle appraiser:

(A) For a new or used car business, tow business, insurance company, vehicle body repair business, law enforcement agency or any other state or local jurisdiction; or

(B) In the operation or employment of a certified vehicle dismantler business.

(2) A qualified applicant for a vehicle appraiser certificate may substitute a certificate of completion of the Vehicle Appraiser Education Program established under OAR 735-152-0010 for proof of work experience required under subsection (1 )(c) of this rule. For purposes of 735-158-0010 and this section, "qualified applicant" means an individual who, as a condition of employment, is:

(a) Required to conduct vehicle appraisals under ORS 819.210, 819.215 or 819.280; and

(b) Required to conduct vehicle appraisals as an employee of a towing business that holds a valid towing business certificate issued under ORS 822.205 and OAR chapter 735, division 154; or

(c) Employed by a public agency authorized to take a vehicle into custody and tow the vehicle as described under ORS 819.140. This includes state, city and county law enforcement agencies and other agencies responsible for enforcing laws relating to abandoned vehicles and vehicles that constitute a roadside hazard.

(3) OMV will not process an application that is incomplete. An incomplete application and the fees submitted with the application will be returned to the applicant.

(4) When OMV denies issuance or renewal of a vehicle appraiser certificate, OMV will retain the fees submitted with the application to cover the cost of processing the application.

(5) In addition to any other penalty provided by law, OMV may suspend, revoke, or refuse to issue or renew a vehicle appraiser certificate on the following grounds:

(a) Making a false or misleading statement or misrepresentation, including by act of omission, pertaining to:

(A) An application for a vehicle appraiser certificate;

(B) A vehicle appraiser report;

(C) Any document required by OMV; or

(0) Any investigation by OMV or law enforcement.

(b) Failure to comply with any applicable statute or rule pertaining to a vehicle appraiser certificate.

(c) OMV determines the applicant was convicted of a felony or misdemeanor related to fraud or dishonesty, if the conviction occurred less than three years before the date of application.

(6) A vehicle appraiser or applicant for a vehicle appraiser certificate who is subject to suspension, revocation or refusal to issue or renew the vehicle appraiser certificate is entitled to a contested case hearing as provided in the Oregon Administrative Procedures Act, ORS Chapter 183.

41Appendix B

Stat. Auth.: ORS 184.616, 184.619, 802.010 & 819.480 Stats. Implemented: ORS 819.210, 819.215, 819.480, 819.482 & 822.700 Hist.: MV 25-1981(Temp), f. & ef. 12-1-81; MV 13-1982, 5-28-82, ef. 6-1-82; MV 27-1986, f. 12-31-86, ef. 1-1-87; Administrative Renumbering 3-1988, Renumbered from 735-071-0078; OMV 7-2002(Temp), f. 3-14-02, cert. ef. 3-18-02 thru 9-13-02; OMV 13-2002, f. & cert. ef. 6-24-02; OMV 16-2006, f. & cert. ef. 11-17-06; OMV 13-2007, f. & cert. ef. 11-30-07; OMV 8-2009, f. & cert. ef. 3-20-09; OMV 22-2009(Temp), f. 12-22-09, cert. ef. 1-1-10 thru 6-30-10; OMV 11-2010, f. & cert. ef. 6-16-10

735-158-0005

Vehicle Appraiser Education Program

(1) Training Requirements. The Vehicle Appraiser Education Program is a non-vocational training program designed for individuals who need a vehicle appraiser certificate as a condition of employment, as described in OAR 735-158-0000(2). The training, conducted by OMV-approved instructors, provides education on the basic skills and minimum knowledge required to appraise vehicles in Oregon. The training is a minimum of four hours and covers:

(a) Oregon laws and administrative rules applicable to certified vehicle appraisers and the appraisal of vehicles, including but not limited to:

(A) Privileges granted by an appraiser certificate and certificate renewal;

(B) Reporting requirements and appraisal-related forms; and

(C) Procedures and requirements regarding the towing of vehicles from a public right-of-way or private property, and the disposition of vehicles when towed.

(b) Accepted appraisal methods, determining vehicle value and how to recognize high-value vehicles and collector cars; and

(c) Resources of information relating to vehicle appraisers and the appraisal of vehicles. For example, information may be obtained from associations, car clubs, publications, vehicle valuation guides, seminars, or websites.

(2) Individuals who successfully complete the training program will receive a statement of completion from the training instructor. The statement may be submitted to OMV as proof of work experience required under OAR 735-158-0010 when applying for a vehicle appraiser certificate.

Stat. Auth.: ORS 184.616, 184.619, 802.010 & 819.480 Stats. Implemented: ORS 819.210, 819.215, 819.480, 819.482 & 822.700 Hist.: OMV 8-2009, f. & cert. ef. 3-20-09; OMV 22-2009(Temp), f. 12-22-09, cert. ef. 1-1-10 thru 6-30-10; OMV 11-2010, f. &cert. ef. 6-16-10

735-158-0010

Vehicle Appraiser Education Program; Instructor Qualifications; Requirements

(1) A person who wishes to become a OMV-approved Vehicle Appraiser Education Program instructor must:

(a) Hold a valid Oregon Vehicle Appraiser Certificate;

SjAppendix B

(b) Have a minimum of five consecutive years experience as a certified vehicle appraiser in Oregon; and

( c) Submit a written request to become an instructor to OMV Business Regulation Section, 1905 Lana Ave. NE, Salem Oregon 97314. The request must include the following information for the person making the request:

(A) Name, mailing address and telephone number;

(B) A copy of the person's current Vehicle Appraiser Certificate. The copy must show the certificate number, date of issuance and date of expiration; and

(C) An outline of the curriculum the instructor plans to use for the training. At a minimum, the curriculum must cover all topics described under OAR 735-158-0005(1) and include a least four hours of training.

(2) OMV will notify a person who submits a request to become a Vehicle Appraiser Education Program instructor upon approval or denial of their request.

(3) A OMV-approved instructor may conduct training classes at anytime. However, the instructor must submit the following to OMV within seven business days of completing a training:

(a) The date and time of the training; and

(b) For each person who successfully completes the training:

(A) The person's name, mailing address and telephone number; and

(B) The name, mailing address and telephone number of the tow company or public agency with whom the person is employed.

Stat. Auth.: ORS 184.616, 184.619, 802.010 & 819.480 Stats. Implemented: ORS 819.210, 819.215, 819.480, 819.482 & 822.700 Hist.: OMV 8-2009, f. & cert. ef. 3-20-09; OMV 22-2009(Temp), f. 12-22-09, cert. ef. 1-1-10 thru 6-30-10; OMV 11-2010, f. & cert. ef. 6-16-10

OREGON DEPARTMENT OF TRANSPORTATION WEBSITE: VEHICLE APPRAISER CERTIFICATE

https://www.oregon.gov/ODOT /DMV /pages/dea lers/abandonedvehapp.aspx

6IAppendix B