Near the end of 2018, a Massachusetts Auto Damage Appraiser Licensing Board (ADALB) meeting included a conversation on whether an insurer has the right to dictate which supplier a shop or customer uses when doing an appraisal.
The conversation concluded with a discussion around a certain passage of CMR 211 133.04 in which leaders of AASP/MA took particular interest.
That passage reads: “When an insurance company specifies the use of used, rebuilt or aftermarket parts, the source and specific part(s) must be indicated on the appraisal. If the repairer uses the source and specified part(s) indicated on the appraisal and these parts are later determined by both parties to be unfit for use in the repair, the insurance company shall be responsible for the costs of restoring the parts to usable condition. If both parties agree that a specified part is unfit and must be replaced, the insurer shall be responsible for replacement costs such as freight and handling unless the repair shop is responsible for the part(s) being unfit or unless the insurer and repairer otherwise agree. As to such costs, nothing in 211 CMR 133.00 shall preclude an insurer from exercising any available rights of recovery against the supplier.”
On Dec. 19, AASP/MA asked its in-state members to contact the association if they had experienced issues adhering to CMR 211 133.04 because they were unable to buy or return parts from vendors listed on appraisals, had received estimates with numerous parts suppliers listed, or had vendors that wouldn’t do business with the shops because of part-return frequency.
The response from AASP/MA’s membership began arriving via email and phone within minutes of the request.
AASP/MA Executive Director Lucky Papageorg noted, “There was an immediate response from multiple shops across the state indicating they have had an issue with either being unable to get the aftermarket parts sourced on the estimate from the insurer or with the sheer number of sources listed on a single estimate. Many are vendors the shops don’t regularly use and, therefore, have no previous business relationship with … This causes a huge strain on the administrative process within a shop as well as a dramatic, detrimental effect on their cycle times.”