CHAPTER 279

FORMERLY SENATE BILL NO. 325

AS AMENDED BY SENATE AMENDMENT NO. 1

AND HOUSE AMENDMENT NO. 1

AN ACT TO AMEND TITLE 18, DELAWARE CODE, BY AMENDING CHAPTER 17 TO ALLOW ADJUSTERS TO BE EMPLOYED BY ATTORNEYS, LICENSING OF MOTOR VEHICLE PHYSICAL DAMAGE APPRAISERS TO REQUIRE INSURANCE TO BE THE PRINCIPLE BUSINESS OF ALL AGENTS AND BROKERS, CHANGING ORGANIZATION AND RESIDENCY REQUIREMENTS OF AGENT AND BROKER FIRMS AND CORPORATIONS AND REFUNDABILITY OF LICENSE FEES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. Chapter 17, Title 18, Delaware Code, is hereby amended by changing the title to read:

"Chapter 17. Agents, Brokers, Solicitors, Adjusters and Appraisers"

Section 2. Chapter 17, Title 18, Delaware Code, is amended by adding after Section 1707 an additional section to be known and designated as follows:

§ 1707 (a). Motor vehicle physical damage appraiser

(a) "Motor vehicle physical damage appraiser" means any person, partnership, association or corporation which practices as a business the appraising of damages to motor vehicles insured under automobile physical damage policies or on behalf of third party claimants.

Section 3. § 1708, Chapter 17, Title 18, Delaware Code, is amended by adding a new subsection (e) to read as follows:

(e) No person shall act as an appraiser for motor vehicle physical damage claims on behalf of any insurance company or firm or corporation engaged in the adjustment or appraisal of

motor vehicle claims unless such person has first secured a license from the insurance Commissioner.

Section 4. §1708.(a), Chapter 17, Title 18, Delaware Code, is stricken in its entirety and a new subsection (a) is substituted to read as follows:

(a) No person shall in this State be, act as, or hold himself out to be an agent, broker, solicitor, adjuster or appraiser unless then licensed as such agent, broker, solicitor, adjuster or appraiser under this Chapter.

Section 5. §1711 (a) (6), Chapter 17, Title 18, Delaware Code, is amended by striking the words "general lines" and inserting after the word "broker" the words, "except as designated in Section 1710 (e) (1) (2) (3)."

Section 6. §1711, Chapter 17, Title 18, Delaware Code, is amended by adding a new subsection (c) to read as follows:

(c) Any person who has been engaged in the business of motor vehicle physical damage appraising for a period of two consecutive years immediately prior to the effective date of this Act shall be granted a license upon application with no further qualification.

Section 7. §1712 (a), Chapter 17, Title 18, Delaware Code, is amended by striking the first complete sentence and inserting in lieu thereof the following:

A firm or corporation shall be licensed only as an agent, broker, adjuster or appraiser.

Section 8. §1712 (c), Chapter 17, Title 18, Delaware Code, is to be stricken in its entirety and a new subsection (c) is substituted to read as follows:

(c) The Commissioner shall not license a firm or corporation as an agent or broker unless it is organized under the laws of its state of domicile and the license is within purposes stated in the partnership agreement or Certificate of Incorporation.

Section 9. §1715 (1), Chapter 17, Title 18, Delaware Code,

shall be amended by inserting after the word "suspended" the word "expired".

Section 10. §1716 (a), Chapter 17, Title 18, Delaware Code, shall be stricken in its entirety and a new subsection (a) will be substituted to read as follows:

(a) Each examination for license as agent, broker, solicitor, adjuster and appraiser shall reasonably test the applicant's competence and knowledge of the kinds of insurance, policies and transactions to be handled under the license applied for, of the duties and responsibilities of such a license, and of the pertinent laws of this State with which the applicant reasonably should be familiar.

Section 11. §1718 (b), Chapter 17, Title 18, Delaware Code, is amended by striking said subsection in its entirety and substituting in lieu thereof a new subsection (b) to read as follows:

(b) All fees for application for agent, broker, solicitor, adjuster or appraiser license shall be deemed earned when paid and shall not be refundable.

Section 12. §1722 (a), Chapter 17, Title 18, Delaware Code, shall be amended by inserting after the word "adjuster," the word "appraiser,".

Section 13. §1722 (a) (1), Chapter 17, Title 18, Delaware Code, shall be amended by inserting after the word "adjuster," the word "appraiser,".

Section 14. §1743 (a), Chapter 17, Title 18, Delaware Code, shall be amended by inserting after the word "adjuster," the words "or appraiser".

Approved July 13, 1971