Liability Insurance Administrators, along with their national real estate appraiser E&O claims counsel, analyzes appraiser claim files to identify litigation trends and effective defenses. Their findings are published in periodic Claim Alert bulletins.
In an earlier blog post on Appraisal Scoop we covered several of the scenerios that appraisers could find themselves involved in that could lead to the theft of their identity.
The Identity Theft, Forgery & Other "Altered" States. Claim Alert looks at this topic from the viewpoint of an Errors & Omissions insurer and provides some tips on how to stay out of trouble and what to do if you GET into trouble!
Here are a few highlights:
- The majority of identity theft claims reported to us arise from instances of forgery committed by someone the appraiser knows – usually a current or former employee.
- Unless required by your state`s licensing regulations, do not display your license number on websites, business cards, stationery, etc.
- Claims against appraisers based on altered appraisals are often the most difficult to defend. The appraiser has to show that the report in the hands of the claimant is not the same work product that left his or her office.
- Besides guarding your license number, appraisers must be extremely protective of their digital signature. The signature must be password protected and should never be shared, no matter what the urgency.
- If you are obligated to give someone else access to your signature, you should have a written agreement which outlines the situations where they may use your signature and those situations where they may change your original work product.
- Consider being consistent in the way in which you prepare all of your appraisals. Some appraisers have begun to use a particular phrase in every report they prepare.
What to do when you discover you are a victim of identity theft
If you suspect you may be a victim of identity theft, take it seriously.
- Investigate suspicious calls and do not get discouraged if your messages are not returned or promised documents are never sent.
- Identity theft and forgery are criminal offenses; report incidents to local law enforcement. If you are sued months or years later you will have a police report to submit as part of your defense.
- If you know for a fact that another appraiser has signed your name to an appraisal report without your permission, report him to the appropriate real estate appraiser regulatory board.
- Contact your clients or at least the lender whose name appears on the forged appraisal and advise them that someone may be signing your name to appraisals and discuss a simple way for them to confirm that you prepared a report they receive; confirm these conversations in writing.
For the complete Liability Insurance Administrator's Claim Alert click here:Link: Liability Insurance Administrators.
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