Ch. 36                                          1995 LAWS OF MARYLAND

Defined term: "Insurer" § 1-101
10-503. PROHIBITED ACTS.

(A)     IN GENERAL.

AN ADJUSTER, APPRAISER, OR AGENT OR EMPLOYEE OF AN INSURER MAY
NOT:

(1)      RECOMMEND THE USE OF A SPECIFIC REPAIR SERVICE OR SOURCE
FOR THE REPAIR OR REPLACEMENT OF PROPERTY DAMAGE TO A MOTOR VEHICLE
WITHOUT INFORMING THE CLAIMANT OR INSURED THAT THE CLAIMANT OR
INSURED DOES NOT HAVE TO USE THE RECOMMENDED REPAIR SERVICE OR
SOURCE;

(2)      REQUIRE THAT AN APPRAISAL OR REPAIR BE MADE IN A SPECIFIC
REPAIR SHOP;

(3)      REQUIRE THAT A. CLAIMANT OR INSURED USE A SPECIFIC
CONTRACTOR OR REPAIR SHOP FOR A REPAIR SERVICE OR REPAIR PRODUCT; OR

(4)      INTIMIDATE, COERCE, OR THREATEN A CLAIMANT OR INSURED TO
USE A SPECIFIC CONTRACTOR OR REPAIR SHOP FOR A REPAIR SERVICE OR REPAIR
PRODUCT.

(B)      REMUNERATION FOR RECOMMENDATIONS.

AN ADJUSTER OR APPRAISER MAY NOT ACCEPT A GRATUITY OR OTHER FORM
OF REMUNERATION FROM A REPAIR SERVICE FOR RECOMMENDING THAT REPAIR
SERVICE TO A CLAIMANT OR INSURED.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 490Q(b) and (c).

In subsection (a)(1) of this section, the reference to property damage "to a
motor vehicle" is added for clarity.

In subsection (a)(3) and (4) of this section, the former references to an
insured "under a policy" are deleted as implicit.

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that while the prohibitions in subsection (a) of this section
apply to adjusters, appraisers, and agents and employees of an insurer, the
prohibition in subsection (b) of this section against accepting remuneration
from a repair service for recommending that repair service applies only to
adjusters and appraisers. The General Assembly may wish to expand to agents
and employees of an insurer the prohibition in subsection (b) of this section.

The Committee also notes, for consideration by the General Assembly, that
the meaning of the "replacement" of property damage in subsection (a)(1) of
this section is unclear. The General Assembly may wish to clarify this
language.

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