Peter Christensen has written a post on the Appraiser Law Blog discussing appraiser concerns about the indemnity clauses contained in many AMC agreements.
"Many of our recent calls have concerned the TSI Appraisal Services Appraiser Agreement. This agreement is worth looking at because, though more extreme than others in its one-sided wording, it illustrates the typical legal problems for appraisers found in AMC agreements."
"In the end, whether an appraiser signs an AMC agreement like TSI's comes down to a business judgment: whether the benefit of doing business with the AMC (and receiving its appraisal orders) outweighs the potential risk it may cause, including potential liability beyond insurance coverage.
Based on our claims experience, as of this date, we have not received a material number of claims affected by indemnity provisions in AMC agreements, but the future is uncertain and these liability shifting provisions may become more significant.
An appraiser could also try to persuade an AMC to drop or amend its indemnity language. Obviously, the more that appraisers demand such changes, the more likely that AMCs will have to change their agreements and make them less one-sided."
The full article is here.