We have invoked the appraisal process and wrote a letter to the PA with the name of our appraiser. Below is the response from the Public Adjuster, S. XXXX that is representing our insured.
Good Afternoon Jxxx,
Thank you for your letter dated April 28, 2025.
Please be advised that I, Stephen XXXX, will be acting as the appraiser for Mr. Robert XXXX. As the appraisal provision requires only that the appraiser be competent, I meet the necessary qualifications to serve in this role.
I will be reaching out to Mike XXXX shortly to coordinate and set up the inspection so that we can move the appraisal process forward without delay.
I look forward to working cooperatively toward a resolution.
S. XXXX
Public Adjuster
Is this appropriate under the AAIS ML-3 Appraisal provisions? Or is the PA, Stephen XXXX required to assign a different appraiser?
The PA is missing a key component of the appraisal language - the appraiser must not only be competent, but impartial. The policy reads as follows (emphasis mine):
Appraisal -- If "you" and "we" do not agree as to the value of the property or the amount of the loss, "you" and "we" will each select an impartial and competent appraiser within 20 days after receiving a written request from the other. The two appraisers will select an umpire. If they do not agree on an umpire, the two appraisers will ask a judge of a court of record of the state in which the appraisal is pending to make the selection. The written agreement of any two of these three will be binding and set the amount of the loss. "You" will pay the expense of "your" appraiser and "we" will pay "ours". "You" and "we" will share equally the expense of the umpire and the other expenses of the appraisal.
We do not see that the PA for an insured could be considered impartial; he is working for the insured, therefore he has an implicit bias to find in advantage of the insured. A different appraiser should be obtained. If there is any doubt, I would check with the insurance department.