Transparency Concerns in State Licensing Board Investigations
Q: "
I recently received a letter from my state licensing board stating that they have received a complaint about one of my appraisals. However, they did not disclose who made the complaint or its details. Despite all this, I am required to send my report and file for their investigation. I am concerned about the fairness of this process and wonder if my E&O will provide an attorney so I can take legal action against the state. This situation needs to change.
A:
I am sorry, but your insurance defends you when a claim is made and there is coverage available to assist with attorney fees if you want to retain counsel to assist you with a state board complaint. The policy does not pay for attorney fees if you seek to hire an attorney to file a lawsuit on your behalf.
The manner in which the states handle these complaints and investigations varies greatly. Your state is not the only one that keeps things confidential. Many other states disclose the name of the complaining party and provide the appraiser with the complaint that was made so the appraiser can respond to each allegation.
If you want to change the way your state deals with these matters, you have to band together with other appraisers to change the rules. They don’t care what your E&O insurer thinks. Your insurance company has no power or influence in your state.