AUTOMOTIVE DAMAGE APPRAISERS TEST Questions and C orrect Solutions 2024 Authority of the Auto Damage Appraiser Licensing Board (M.G.L. C. 26 Sec. 8G; 212 CMR 2.01) - Answer -2.01: Scope of Regulations (1) Purpose and Applicability. The purpose of 212 CMR 2.00 is to promote the public welfare and safety by improving the quality and economy of the appraisal and repair of damaged motor vehicles. Any licensed appraiser, individual or corporate entitywho employs licensed appraisers shall be bound by 212 CMR 2.00. 212 CMR 2.00 is intended to be read in conjunction with 211 CMR 133.00, Standards for the Repair of Damaged Motor Vehicles. (2) Authority. 212 CMR 2.00 is promulgated under the authority granted to the Auto Damage Appraiser Licensing Board by M.G.L. c. 26, § 8G, as added by St. 1981, c. 775, § 1. (3) The Board may from time to time issue Advisory Rulings and shall do so in compliance with M.G.L. c. 30A, § 8. (4) Definitions 1.2 Licensing requirements Qualifications (M.G.L. C. 26 Sec. 8G; 212 CMR 2.02(2)) - Answer -Any applicant for a license shall be 18 years of age or over and of good moral character. He or she shall furnish satisfactory proof to the Board that he or she possesses the educational qualifications required for graduation from high school or that he or she possesses relevant work experience deemed satisfactory by the Board. No applicant shall be considered competent unless the applicant has assisted in the preparation of appraisals for at least three months under the close supervision of a licensed appraiser. He or she shall complete an approved appraisal course or at the Board's discretion work experience may be substituted for said schooling. 1.2 Licensing requirements: Process (M.G.L. C. 26 Sec. 8G; 212 CMR 2.02(3)) - Answer -Application and Examination Fee for a License. Any applicant for a license shall complete an application to be prescribed by the Board and shall sign it under the penalties of perjury. He or she shall submit this application and non -refundable fee of $100 to the Board. After an application is received and approved, the applicant shall be required to pass an examination given under the supervision of the Board. All successful applicants will be issued a numbered license. Any applicant failing to pass an examination, upon the payment of a further nonrefundable fee of $50.00, shall be entitled to a reexamination after the expiration of six months from the date of the last examination. Any applicant failing to pass an examination shall be allowed to review his or her examination. 1.2 Licensing requirements: Display (M.G.L. C. 26 Sec. 8G; 212 CMR 2.02(1)) - Answer -Requirement That License Be Obtained and Displayed. No person in Massachusetts shall appraise or estimate damages to motor vehicles or otherwise present himself or herself as an appraiser unless he or she has first obtained a license from the Auto Damage Appraiser Licensing Board. This license shall be valid for one year or less and shall be renewed annually on July 1st. Any appraiser, while making an appraisal, shall carry his or her license and shall, upon request, display it to any person involved in the claim or to any representative of the Board. Maintenance and duration (M.G.L. C. 26 Sec. 8G; 212 CMR 2.02(1)(4)) - Answer -(1) This license shall be valid for one year or less and shall be renewed annually on July 1st. (2) Renewal of License. The Board shall mail to each licensed appraiser an application for renewal. Such application shall be completed and returned to the Board. Each application shall be accompanied by a renewal fee of $50.00. After verification of the facts stated on the renewal application, the Board shall issue a renewal license dated July first, and this license shall expire on the June thirtieth of the year following. Any licensed appraiser who fails to renew his or her license within 60 days after notification by the Board of his or her license expiration date, before again engaging in the practice of a licensed appraiser within the Commonwealth, shall be required to re -register, pay a penalty fee determined by the Board and any back license fees, or may be required by the Board to be reexamined and pay applicable fees. Disciplinary actions Suspension, revocation, (M.G.L. C. 26 Sec. 8G; 212 CMR 2.02) - Answer -(8) Revocation or Suspension of a License. The Board may revoke or suspend any appraiser's license at any time for a period not exceeding one year if the Board finds, after a hearing, that the individual is either not competent or not trustworthy or has committed fraud, deceit, gross negligence, misconduct, or conflict of interest in the preparation of any motor vehicle damage report. The following acts or practices by any appraiser are among those that may be considered as grounds for revocation or suspension of an appraiser's license: (a) material misrepresentations knowingly or negligently made in an application for a license or for its renewal; (b) material misrepresentations knowingly or negligently made to an owner of a damaged motor vehicle or to a repair shop regarding the terms or effect of any contract of insurance; (c) the arrangement of unfair and or unreasonable settlements offered to claimants under collision, limited collision, comprehensive, or property damage liability coverages; (d) the causation or facilitation of the overpayment by an insurer of a claim made under collision, limited collision, comprehensive, or property damage liability coverage as a result of an inaccurate appraisal; (e) the refusal by any appraiser who owns or is employed by a repair shop to allow an appraiser assigned by an insurer access to that repair shop for the purpose of making an appraisal, supervisory reinspection, or intensified appraisal. (f) the commission of any criminal act related to appraisals, or any felonious act, which results in final conviction; (g) knowingly preparing an appraisal that itemizes damage to a motor vehicle that does not exist: and (h) failure to comply with 212 CMR 2.00. Disciplinary actions Refusal to issue or renew (M.G.L. C. 26 Sec. 8G; 212 CMR 2.02) - Answer -(3) Any applicant failing to pass an examination, upon the payment of a further nonrefundable fee of $50.00, shall be entitled to a reexamination after the expiration of six months from the date of the last examination (4) Any licensed appraiser who fails to renew his or her license within 60 days after notification by the Board of his or her license expiration date, before again engaging in the practice of a licensed appraiser within the Commonwealth, shall be required to re -register, pay a penalty fee determined by the Board and any back license fees, or may be required by the Board to be reexamined and pay applicable fees Penalties and fines (211 CMR 123.08) - Answer -Penalties (1) A violation of any provision of 211 CMR 123.00 shall be considered to be an unfair or deceptive act or practice, in violation of M.G.L. c. 176D. (2) A violation of any provision of 211 CMR 123.00 by any insurance producer, insurer or employee or representative of an insurer, or motor vehicle damage appraiser shall be grounds for suspension or revocation of the license of such person or persons. (3) Nothing herein shall be deemed to preclude the claimant or policyholder, the Commissioner, the Attorney General or the Director of the Division of Standards from pursuing any other remedy or penalty provided by law including any remedy provided under M.G.L. c. 93A or M.G.L. c. 100A. Penalties and fines (211 CMR 133.08) - Answer -Penalties A violation of any provision of 211 CMR 133.00 shall be considered to be an unfair or deceptive act or practice, in violation of M.G.L. c. 176D.
