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Another board meeting was held on Wednesday, May 7, 2003. A number of important matters were discussed including the selection of a logo for use on decals, plaques, letterhead and other items. The new and growing membership was discussed along with new goals of the organization. The next board meeting will be held on June 5, 2003 beginning at 7:00 pm at Pierson's, 3330 South Main Street, Salt Lake City, UT. The board members of the Auto Body Owners Association of Utah would like to invite anyone who would like to attend to come and listen or participate. The Association is new and they are just now getting to focus on some of the goals and objectives. If you would like to join, please fill out and send in the membership application attached to this issue of Watch Dawg along with the fee as outlined on the application. The Association would also invite you to list for them in order of priority the things you would like to see the new organization accomplish. The Association is new and not many things are set in stone. This is the formative phase. Things may not be perfect at first, but with your help and assistance, the association can become a powerful voice for the industry. There is strength in unity and much good can be accomplished. Your ideas or suggestions can be sent in by writing on a separate sheet of paper or the back of the application itself. The publishers of Watch Dawg will also forward your suggestions on to the association if you want to send them to us by email at larson@bestattorneys.com .
This is an exciting time for the auto body industry in Utah. We know that some shops are having a slow year compared to previous years. The slowed economy and changing standards within the insurance industry has affected nearly everyone's bottom line. We are confident that the new association is a good move and will help the profession. So sign up now! If you have questions, call any of the officers: Val Adams, President, (801) 566-1215, Dennis Gailey, Vice President, (801) 393-5888, Jack Berry, Treasurer, (801) 553-1009. Or you can, call Bryan Larson at (801)446-6464. Mr. Larson does not own a body shop and is not a "vendor". However, he has been a great coach and valued organizer since the beginning. The end
Val Adams has been in this business in one form or another for more than twenty years. She started out as a secretary for South West Insurance in 1979. A few years later, her dad opened Chris' Body and Paint. Val was asked to do payroll for them and she has been there ever since. She now owns the place. Val went to Hillcrest High School and got her degree from LDS Business College. She has four children, all boys. As President, Ms. Adams would like to help educate shops and the public on their rights. She would like to increase awareness about what goes on in body shops and how billing works. She wants body shops to come together and learn how to improve their business. "It's important to get to know each other... to rub shoulders in a positive way." Val looks forward to making a difference with the I Auto Body Owners Association of Utah and welcomes your membership and support. The end
If you recall, two months ago the lead story in Watch Dawg was about a wayward Allied/ Nationwide adjuster by the name of Cameron Nerdin who was caught steering business away from an area shop by telling potential customers to avoid that body shop because they "ran a meth lab " at the shop. After pressure from this law firm, the adjuster eventually confessed to making this comment "8 or 9 times" to either steer business or disparage the unsuspecting shop among its neighborhood competition. After this first offense, Allied/Nationwide leadership failed to fire Mr. Nerdin. Mr. Nerdin extended a shallow apology to the offended shop and promised to discontinue such false and malicious behavior altogether. At that time Mr. Nerdin was warned of the eyes and ears of Watch Dawg readers who would monitor his actions. Allied/Nationwide bosses promised to oversee Mr. Nerdin's future behavior very closely.
As unbelievable as it may sound, less than two months after his confession, Mr. Nerdin was again caught making similar slanderous comments about the same shop in the lobby of another body shop just a few miles down the street. Unfortunately for Mr. Nerdin, that South Salt Lake Valley body shop was also an avid reader of Watch Dawg and reported Mr. Nerdin's newest outbursts at their place of business to Watch Dawg. Without provocation Mr. Nerdin started ranting in their reception area about his "meth lab " comments published and exposed in Watch Dawg. In front of several witnesses Mr. Nerdin denied the integrity of his earlier confession and reaffirmed that his earlier "meth lab" comments about an area shop were accurate.
"He just wouldn't shut up, and I had work to do, " the shop owner stated to us. As if he hadn't dug his hole deep enough, Mr. Nerdin then spouted off to those present that his real reason for steering the specific customer in the "meth lab " incident was more than just his twisted interpretation of his company's policy. Mr. Nerdin then revealed that because the individual who caused that collision had a relationship with one of his DRPs (employee, relative, friend) he had entered into a pact to steer the unsuspecting claimant in that case to that particular DRP. The plan was to allow that DRP to control the claimant's repairs to benefit one of their buddies. Mr. Nerdin stopped short of describing what, if anything, was in it for him if he had been successful in steering the claimant prey to the conniving DRP.
Watch Dawg immediately reported the facts of the latest incident to Allied/Nationwide in Denver. They took swift and appropriate action. We understand their personnel department conducted their own investigation that confirmed our allegations. Days later Watch Dawg received a letter from Susan M. Fitzsimmons, an attorney at their corporate headquarters in Iowa, stating that "... appropriate action has been taken. " We were later able to confirm through Kathy at the Salt Lake Allied/Nationwide office that Mr. Nerdin had been fired. The unsavory actions of a devious adjuster were uncovered by Watch Dawg, its readers and a savvy claimant. In our opinion Mr. Nerdin simply got what he deserved, maybe months too late. We thought Allied/Nationwide should have terminated Mr. Nerdin when his bad behavior was first discovered months ago. However, when Watch Dawg served up even more misbehavior of a similar nature by this same adjuster, Nationwide fired him just like they promised they would if he didn't stop.
We know Allied/Nationwide doesn't condone such wanton slander as a tactic for steering customers to their DRPs and that they do not ever tolerate unholy alliances between their adjusters and their DRPs. We're confident that any shady DRPs thought to have been in cahoots with Mr. Nerdin before he was canned will be appropriately dealt with by Allied/Nationwide and their honest leaders. Our thanks to Field Claims Manager Rick Chilingarian at Allied/ Nationwide for his appropriate handling of the Cameron Nerdin matter.
Being informed and unified can make a difference. We appreciate the support of our readers.
The end
R590-89-13. Standards for Prompt, Fair, and Equitable Settlements Applicable to Automobile Insurance.
A. When the insurance policy provides for the adjustments and settlement of the first party automobile total losses on the basis of actual cash value or replacement with another of like, kind, and quality, one of the following methods must apply:
(1) The insurer may elect to offer a replacement automobile which is a specific comparable automobile available to the insured, with all applicable taxes, licencing fees and other fees incident to the transfer of evidence of ownership of the automobile paid, at no cost other than any deductible provided in the policy. The offer and any rejection thereof must be documented in the claim file.
(2) The insurer may elect a cash settlement based upon the actual cost, less any deductible provided in the policy, to purchase a comparable automobile including all applicable taxes, licencing fees and other fees incident to transfer of evidence of ownership of a comparable automobile. Such cost may be determined by:
(a) The cost of a comparable automobile in the local market area when a comparable automobile is available in the local market area; or
(b) One of two or more quotations obtained by the insurer from two or more qualified dealers located within the local market area when a comparable automobile is not available in the local market area.
(3) When a first party automobile total loss is settled on a basis which deviates from the methods described in subsections A(l) and A(2) of this section; the deviation must be supported by documentation giving particulars of the automobile condition. Any deductions from such cost, including deductions for salvage, must be measurable, itemized and specified as to dollar amount and shall be appropriate in amount. The basis for such settlement shall be fully explained to the first party claimant.
B. Total loss settlements with a third party claimant shall be on the basis of the market value or actual cost of a comparable automobile at the time of loss. Settlement procedures shall be in accordance with paragraphs (2) and (3) of subsection A.
C. Where liability and damages are reasonably clear, insurers shall not recommend that third party claimants make a claim under their own policies solely to avoid paying claims under such insurer's insurance policy or insurance contract.
D. Insurers shall not require a claimant to travel an unreasonable distance to inspect a replacement automobile, to obtain a repair estimate or to have the automobile repaired at a specific repair shop
E. Insurers shall, upon the claimant's request, include the first party claimants deductible, if any, in subrogation demands initiated by the insurer. Subrogation recoveries may be shared on a proportionate basis with the first party claimant when an agreement is reached for less than the full amount of the loss, unless the deductible amount has been otherwise recovered. No deduction for expenses can be made from the deductible recovery unless an outside attorney is retained to collect such recovery. The deduction may then be for only a pro rata share of the allocated loss adjustment expense. If subrogation is initiated but discontinued, the insured shall be advised.
F. If an insurer prepares or approves an estimate of the cost of automobile repairs, such estimate shall be in an amount for which it may be reasonably expected the damage can be satisfactorily repaired. If the insurer prepares an estimate, it shall give a copy of the estimate to the claimant and may furnish to the claimant the names of one or more conveniently located repair shops.
G. When the amount claimed is reduced because of betterment or depreciation, all information for such reduction shall be contained in the claim file/ such deductions shall be itemized and specified as to dollar amount and shall be appropriate for the amount of deductions.
H. When the insurer elects to repair and designates a specific repair shop for automobile repairs, the insurer shall cause the damaged automobile to be restored to its condition prior to the loss at no additional cost to the claimant other than as stated in the policy and within a reasonable period of time.
I. Where coverage exists, loss of use payment shall be made to a claimant for the reasonably incurred cost of transportation, or for the reasonably incurred rental cost of a substitute vehicle, including collision damage waiver, during the period the automobile is necessarily withdrawn from service to obtain parts or effect repair, or, in the event the automobile is a total loss and the claim has been made by the insurer. The insurer may not refuse to pay for loss of use for the period that the insurer is examining the claim or making other determinations as to. the payability of the loss, unless such delay reveals that the insurer is not liable to pay the claim. Loss of use payments shall be an amount in addition to the payment for the value of the automobile.
J. Subject to subsection A and B, an insurer shall fairly and equitably and in good faith attempt to compensate a claimant for all losses incurred under collision or comprehensive coverages. Such compensation hall be based at least, but not exclusively, upon the following standards:
1. An offer for settlement shall not be made exclusively on the basis of useful life of the part or vehicle damaged.
2. An estimate of the amount of compensation for the claimant shall include the actual wear and tear, or the lack thereof, of the damaged part or vehicle.
3. Actual cash value shall take into account the cost of replacement of the vehicle and/or the part for which compensation is claimed.
4. An actual estimate of the true useful life remaining in the part or vehicle shall be taken into account in establishing the amount of compensation of a claim.
5. Actual cash value shall include taxes and other fees which shall be incurred by a claimant for the loss incurred.
K. An insurer may not demand reimbursement of Personal Injury Protection payments from a first party insured of payments received by that party for a settlement or judgement against a third party.
The end
State Farm has recently announced to their shocked Utah claims staff that they will soon close most of their neighborhood claims offices throughout Utah. Offices that appear to be scheduled for closure in the south are St. George, Cedar City, Richfield, and Orem. Up north, Logan and Ogden will be closed. The word is that their Sandy, Utah office may be shut down also. It seems that State Farm's new plan is for a consolidated claims operation maybe based in one building monitoring all of Utah. Expect a reduced team of statewide claims handlers, with many working out of their homes in areas where there once was a fully staffed claims center. State Farm's new slogan of "we live where you live" may be literal since their new claims operation in your town may be in the basement of a home on your block. From somewhat reliable State Farm informants Bondo Bob learned that no severance packages are being offered any of those getting the axe with all these office closures. Even employees with over ten years of service to the company are simply being shown the door. Bondo Bob is not surprised by this corporate behavior as it seems that State Farm may now be dealing with their claims staff like they have treated some of their agents, policyholders and claimants for years.
Apparently USAA has declared open season on any damaged vehicle older than 2 years of age. These 2001 and older units will end up with USAA estimates filled with used parts and non-OEM pieces whenever USAA can find them, and maybe even when they can't. USAA also insists on using the manufacturer's production date to determine the age of the claimant's or policyholder's damaged ride, causing even more vehicles to be effected (infected) by this policy. Few USAA customers know about this tactic.
Allstate's elite Agency Managers are charged with overseeing their army of sales agents to assure that the public steadily gets the pitch that Allstate is the very best auto insurance company to insure your vehicle. Bondo Bob has recently learned that the company cars that are assigned to, and driven by, these hand picked Allstate Agency Managers are mostly insured with Hartford Insurance. Who could blame them for that?
As most of you out there know or suspect, Allstate's present and former Utah Pro-shops may not be too happy with Allstate these days, given the Sterling Shop now in their midst and the pitching of one Pro-shop against another that seems rampant. Allstate's agents may not have been informed of this unrest among former Pro-shop friends. Bondo Bob has learned that at least one Allstate agent who suffered collision damage followed the advice of his Allstate estimator and allowed his damaged ride to be towed to one of Allstate's mega-dealership Pro-shops. Last Bondo Bob heard, this unsuspecting agent had been back to the Pro-shop 5 times after they supposedly fixed it. Even after those repeated visits the car's inner mud shields were still falling off onto the top of the tires for lack of the proper retainer clips, the lower windshield moulding remained afloat and the paint the Pro-shop globbed onto the car still had so much "orange peel" it could be the poster child for Sunkist citrus products. The Allstate Pro-shop knew the customer was an Allstate agent, and he lamented they didn't even seem to care. Last we knew the unfortunate Allstate agent had learned his lesson and had purposely taken his car to a non-Pro-shop for some needed help. Once that high quality body shop had re-inspected the Allstate Pro-shop repairs and heard the agent's story, that new shop fixed what they could for the agent for free. This included a buff of the entire car to knock down some of the mogul fields in the new paint. Is it possible that Allstate Pro-shops are taking out their anger on Allstate agents whenever they can? Or, maybe this agent just got what everybody else gets at that Allstate Pro-shop?
It seems that Progressive adjusters may be using yet another steering technique that deserves watching. They tell the unwary customer that their corporate repair guaranty is far better than any neighborhood Utah body shop, since Progressive Insurance will now honor their guaranty anywhere in the USA, should the customer later relocate elsewhere.
Guaranty National/Orion Insurance has closed down their Salt Lake claims office operation citing corporate consolidation. We understand that the majority of their Salt Lake staff were simply fired, some after years of devoted and loyal service.
Bondo Bob is getting loads of reports about adjusters with several companies writing estimate sheets from their inspection of the customer's car at your shop, then holding back their estimate while trying to "steer" the customer over the phone to another shop. Whereupon the adjuster then slyly offers to deliver his completed estimate to his crony shop, ". . to avoid further delays. ". However, when the first shop has already secured the customer's signature on the work authorization segment of a repair order, adjusters tend to leave that work alone and prey on other shops' customers instead. Get the customer's signature on your work order each and every time. No matter what. No excuses.
See you next month. BB.
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