Massachusetts Auto Damage Appraiser Licensing Board takes comments on advisory ruling

The Massachusetts Auto Damage Appraiser Licensing Board is taking comments on its proposed advisory ruling meant to reaffirm that registered repair shops and insurance companies should use licensed appraisers for appraisals. 

According to a notice, the board will vote on the advisory ruling July 14. 

The advisory notes that the Massachusetts Division of Standards, which administers motor vehicle repair shop registrations, no longer requires shops to employ a licensed motor vehicle damage appraiser as a condition of registration. 

However, that does not relieve any obligation shops have under the Auto Damage Appraiser Licensing Board. 

It adds that the board interprets repair shops retaining or engaging a licensed appraiser or subcontractor as “employment,” provided the appraiser is directly responsible for preparing and negotiating the appraisal. 

This includes insurer-involved appraisal functions such as preparing appraisals, supplemental appraisals, expedited supplemental requests, and/or other insurance-related appraisal activities.

The advisory rule would also prohibit licensed and independent appraisers from knowingly negotiating repairs with unlicensed individuals or unregistered repair shops. 

The proposed rule states that failure to comply may result in fines and penalties.

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