HB 31-FN – AS INTRODUCED
2007 SESSION
01/04
HOUSE BILL 31-FN
AN ACT requiring the licensure of property and casualty insurance appraisers.
SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Matthew Quandt, Rock 13
This bill establishes licensure procedures for property and casualty insurance appraisers.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0014
01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT requiring the licensure of property and casualty insurance appraisers.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Chapter; Physical Property Damage Appraisers. Amend RSA by inserting after chapter 402-J the following new chapter:
CHAPTER 402-K
PHYSICAL PROPERTY DAMAGE APPRAISERS
402-K:1 Purpose and Scope.
I. The purpose of this chapter is to govern the qualifications and procedures for the licensing of physical property damage appraisers. This chapter is applicable to all physical property damage appraisers employed by or contracted with an insurer licensed and authorized to write motor vehicle or homeowner insurance in this state pursuant to title XXXVII.
II. The provisions of this chapter are not applicable to adjusters licensed pursuant to RSA 402-B or RSA 402-D.
402-K:2 Definitions. In this chapter:
I. “Appraiser” means physical property damage appraiser.
II. “Commissioner” means the insurance commissioner.
III. “Department” means the insurance department.
IV. “Insurance company” means any insurer licensed by the department to write motor vehicle or homeowner insurance in the state.
V. “Motor vehicle” means motor vehicle as defined by RSA 259:60, I.
VI. “Physical property damage appraiser” means any person, partnership, association, limited liability company or corporation that is either controlled by a licensed insurance company or under a contractual relationship with a licensed insurance company and practices as a business the appraising of damages to physical property insured under a motor vehicle or homeowner policy or on behalf of third party claimants.
402-K:3 Licensure.
I. No person shall act as a physical property damage appraiser appraising claims on behalf of any insurance company or firm or corporation engaged in the adjustment or appraisal of motor vehicle or homeowner claims unless such person has first secured a license from the commissioner, and has paid the license fee specified in RSA 400-A:29, for each 2-year period.
II. A person applying for an original or renewal license as a physical property damage appraiser shall make application to the commissioner on the appropriate uniform application or other application prescribed by the commissioner.
III. The applicant shall declare under penalty of perjury and under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant’s knowledge and belief.
IV. The commissioner shall review each application and may conduct an investigation of each applicant in accordance with this chapter.
V. An applicant for original license as a physical property damage appraiser shall possess such experience as the commissioner may require.
VI. Any person who has been engaged in the business of physical property damage appraising for a period of 2 consecutive years immediately prior to the effective date of this chapter and who meets the requirements of this chapter, shall be granted a license upon application and payment of the fees required.
VII. Applicants for an original license who do not meet the requirements of paragraph VI shall:
(a) Be at least 18 years of age.
(b) Be a resident of this state, or a resident of any other state that permits residents of this state to act as appraisers in such other state.
(c) Be trustworthy and otherwise establish to the satisfaction of the commissioner that the individual has had experience or special education or training with reference to the business of appraising of physical property damages of sufficient duration and extent reasonably necessary to make the individual competent to fulfill the responsibilities of an appraiser.
402-K:4 License Denial, Nonrenewal, or Revocation.
I. The commissioner may place on probation, suspend, revoke, or refuse to issue or renew a physical property damage appraiser’s license, or may levy a penalty in accordance with RSA 400-A:15, III or any combination of actions for any one or more of the following causes:
(a) Providing incorrect, misleading, incomplete, or materially untrue information in the license application.
(b) Violating any insurance laws, or violating any rule, regulation, subpoena, or order of the commissioner or of another state’s insurance commissioner.
(c) Obtaining or attempting to obtain a license through misrepresentation or fraud.
(d) Improperly withholding, misappropriating, or converting any moneys or properties in the course of doing physical property damage appraisal business.
(e) Intentionally misrepresenting the terms of an actual or proposed physical property damage appraisal.
(f) Having been convicted of a felony.
(g) Having admitted or been found to have committed any insurance unfair trade practice or fraud.
(h) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness or financial irresponsibility in the conduct of business in this state or elsewhere.
(i) Having an appraisal license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory.
(j) Forging another’s name to an appraisal report or to any document related to an appraisal report involving an insurance transaction.
(k) Failing to comply with an administrative or court order imposing a child support obligation.
II. If the commissioner does not renew or denies an application for a license, the commissioner shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the denial or nonrenewal of the applicant’s or licensee’s license. The applicant or licensee may make written demand upon the commissioner for a hearing before the commissioner to determine the reasonableness of the commissioner’s action pursuant to RSA 400-A:17.
III. The license of a business entity may be suspended, revoked, or refused if the commissioner finds, after hearing, that an individual licensee’s violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the partnership or corporation and the violation was neither reported to the commissioner nor had any corrective action taken.
IV. In addition to or in lieu of any applicable denial, suspension, or revocation of a license, a person may, after hearing, be subject to an administrative fine pursuant to RSA 400-A:15, III.
V. The commissioner shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this chapter and title XXXVII against any person who is under investigation for or charged with a violation of this chapter or title XXXVII even if such person’s license or registration has been surrendered or has lapsed by operation of law.
402-K:5 Term of License. The term of a license issued under this chapter shall be 2 years from the date of issuance. The expiration date of the license shall appear on the license and notice of its expiration shall be given to its holder.
402-K:6 Nonresident Licensure; Reciprocity. If, in the determination by the commissioner, another state grants reciprocity to residents of this state and is deemed to have substantially equivalent license requirements, equal to or exceeding those of this state, an applicant who is licensed under the laws of such other state may obtain a license as a licensed appraiser in this state upon such terms and conditions as may be determined by the commissioner.
402-K:7 Renewal of License.
I. To obtain a renewal license, the holder of a current, valid license shall make application and pay the prescribed fee to the commissioner not earlier than 60 days before the expiration date of the license then held.
II. If a licensee fails to renew a license within 2 years of its expiration, the license may be renewed by satisfying all the requirements for renewal and by the payment of a late renewal fee as prescribed in RSA 400-A:29. The resultant next renewal date shall be as if the license was renewed on time, but the license renewal shall not be retroactive.
402-K:8 Principal Place of Business.
I. Each licensed appraiser shall advise the commissioner of the name and address of the insurance company where the appraiser is employed, as well as the appraiser’s residence address.
II. Whenever a licensed appraiser changes employer, or residence address, the appraiser shall, within 10 days of such change, give written notification of the change to the commissioner.
402-K:9 Penalties. Any person who shall act within this state as a physical property damage appraiser without being licensed pursuant to this chapter, or who shall provide false information regarding an appraisal, shall be subject to the suspension or revocation of his or her license and an administrative fine of $2,500 per violation. Any person who shall purposely act, within this state, as an insurance appraiser, knowing that he or she is not licensed under this chapter, or who shall purposely provide false information regarding an appraisal, shall be guilty of a misdemeanor if a natural person or a felony if any other person.
402-K:10 Rulemaking Authority. The commissioner may, as necessary, adopt rules pursuant to RSA 541-A.
402-K:11 Severability. If any provision of this chapter or the application thereof to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the chapter which can be given effect without the invalid provisions or applications, and to this end the provisions of this chapter are severable.
2 New Paragraph; Fees Added. Amend RSA 400-A:29 by inserting after paragraph XXI the following new paragraph:
XXII. Physical Property Damage Appraisers
(a) Non-refundable application and license fee $75
(b) Original license $75
(c) Biennial renewal license $75
(d) Additional fee for late renewal $75
3 Effective Date. This act shall take effect January 1, 2008.
LBAO
07-0014
12/5/06
HB 31-FN - FISCAL NOTE
AN ACT requiring the licensure of property and casualty insurance appraisers.
FISCAL IMPACT:
The Insurance Department has determined this bill will increase state general fund unrestricted revenue by an indeterminable amount in FY 2008 and each fiscal year thereafter. There will be no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department states this bill would require physical property damage appraisers conducting appraisals in New Hampshire to be licensed. This bill also establishes the following fee structure for licenses:
Non-refundable application and license fee $75
Original license $75
Biennial renewal license $75
Additional fee for late renewal $75
The Department is unable to estimate the number of individuals that currently, or would in the future, conduct property damage appraisals that would require licensure and therefore is unable to determine the increase in general fund revenue attributable to licensing fees. The Department assumes that it can absorb the cost of administering the physical property damage appraiser licensing program within their existing budget.