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Page 3 of 3
Legal POV
"Legal Issues In The Collision Repair Industry" was conducted by Attorney Erica Eversman, J.D. of Vehicle Information Services, Inc. Proficient in collision and insurer practices, Eversman began by illustrating the profitless futility of shops' taking part in relations with insurers in which "LKQ," imitation, and such parts are leveraged against shops' best interests. These relationships also mandate shops to contact so-called insurer supplement "hotlines," often to be put off, sometimes for days or weeks for the insurer's okay. This insurer tactic, as we all know, is to force more shops to participate in DRPs.
Eversman quoted Grant T. Hammond from his book The Essential Boyd. "You must be able to Observe and Orient yourself in such a way that you can indeed survive and prosper by shaping the environment where possible to your own ends, (and) by adapting to it where you must," also describing what has been termed the "OODA loop" (Observe, Orient, Decide, and Act), and how this relates to collision repair. Eversman then distributed numerous representative Documents for the Successful Collision Repair Business, which she has compiled for CCRE sponsor-members only.
These include a repair contract that establishes that the shop is in compliance with state consumer protection laws, and that the insurer is not the customer. This form sets out exact terms for establishing the shop as the authority for repairs, and stipulates methods of repair, type of parts to be used, payment obligations, and terms of recovery in the event of non-payment or deficient payment.
Eversman also detailed the contents of and reasons for each of the other forms she provided for each CCRE member present; these forms included Writ of Replevin (to recover personal property wrongfully withheld), Possessory Liens, Assignment of Proceeds, Notice of Supplement, a Supplement Timing Notice, Parts Notice and Authorization, Notice of Deficiency, a Hold Harmless Document, Termination of Repair, one dealing with Contracts of Adhesion (DRP "agreements" are adhesion arrangements), and other similar forms to empower CCRE sponsor-members to conduct business ethically, legally, and apart from insurer interference.
Wrapping up
Several productive, informative hours of Roundtable Discussion finished off the summit, with additional legal advice added by Eversman and attorney David Wattel.
The 2006 CCRE Summit Conference and Seminar Series was nothing short of a great success, in which attendees carried back to their businesses much more valuable information than could even be touched on in this article. As a bonus, attendees took home forms that would have cost thousands of dollars to have an attorney compile.
Perhaps one of the best part of the experience was conversing during meals and before and after hours with so many other dedicated shop owners brought together to further our common goal of serving our true customers better while remaining independent and profitable. And all this without a single insurance representative present to intimidate or repress discussion. Some things are just - priceless!
Dick Strom, Modern Collision Rebuild, 9270 Miller Road, NE, Bain-bridge Island, Washington 98110; (206) 842-3621; e-mail:
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CCRE condemns perceived silencing of fraud study
In a press conference scheduled for October 31, 2006, the Anti-Fraud Committee of the Collision Industry Conference (CIC) was scheduled to release the findings of their study that concluded that insurers cheat consumers and states out of millions of dollars by systematically underwriting insurance estimates.
After months of intensive work collecting and reviewing hundreds of estimates from various insurers in ten states, the Anti-Fraud Committee was prepared to expose the routine practice of insurers underwriting insurance estimates by over 100%, which results in thousands of less-than-adequately repaired vehicles to be returned to our highways.
CCRE asserts that insurance-related forces within the CIC itself put a stop to the press conference announcing the release of this vital information that could have benefitted consumers, states, and collision repairers, and that would have brought scrutiny to the manner in which insurers control the collision repair process, potentially putting consumers' lives in danger.
The Coalition for Collision Repair Excellence (CCRE) publicly condemns this deliberate suppression of evidence concerning fraud - or at best, gross ineptitude - on the part of insurance companies, and demands that they immediately stop this practice. The CCRE also calls on state officials to investigate the practice of insurers' systematic underwriting of estimates, which was substantiated by the findings of the CIC Anti-Fraud Committee, and establish whether certain consumers are driving unsafely repaired vehicles because of this insurer practice.
"In many states, it is a crime to allow an unsafe vehicle back out on the highways," states Erica L. Eversman, J.D., Chief Counsel for Vehicle Information Services, Inc. "I expect to see states take action on the Anti-Fraud Committee's findings. People's lives are at risk, and that should be every state's primary concern."
"Insurers have no business in the collision repair business," states Tony Lombardozzi, president of the CCRE. "Collision repair is a profession that takes knowledge, skill, and integrity. At the CCRE, we expect every one of our members to follow a code of professional conduct that requires each CCRE member to deliver a safe, proper repair as requested by the vehicle owner, not some slipshod repair as is often dictated by insurers.
"The CCRE is a peer network for collision repairers, and does not allow insurers to join their ranks or otherwise influence their decisions. The suppression of the CIC Anti-Fraud Committee's findings is an unfortunate example of how once good organizations often get influenced, corrupted and controlled by those with competing interests. For this reason membership in the CCRE is only open to repairers."
Editor's note: The information regarding the study was discussed at CIC. Only the news conference itself was cancelled. |
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