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Serving the New England Collision and Mechanical Repair Industry MASSACHUSETTS

January 2016 U.S.A. $5.95

THE SPIRIT OF UNITY:

BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

Schools Put AASP/MA Vocational Grants to Use

AASP/MA Hosts Holiday Party, Provides Legislative Review A New Class: Inside the Push for Shop Classifications

www.grecopublishing.com

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New England Automotive Report

January 2016 • Volume 14, No. 1

CONTENTS

DEPARTMENTS PRESIDENT’S MESSAGE by Molly Brodeur 8 | A Clean Slate LOCAL NEWS by Joel Gausten 20 | ADALB Targets Pre-Insurer Teardowns 24 | Schools Put AASP/MA Vocational Grants to Use NATIONAL NEWS by Jacquelyn Bauman 26 | New Year, New Expectations: What’s Coming at NORTHEAST® 2016 28 | Auto Body Shop Choice Bill Signed in Wisconsin LEGAL PERSPECTIVE by James Castleman 32 | Collecting Diminished Value through the Back Door VENDOR SPOTLIGHT by Joel Gausten 36 | Mattie Imports: Where Customers Become Family NATIONAL FEATURE by Joel Gausten 40 | A New Class: Inside the Push for Shop Classifications

COVER STORY 48 | THE SPIRIT OF UNITY: AASP/MA HOSTS HOLIDAY PARTY, PROVIDES LEGISLATIVE REVIEW

ALSO THIS ISSUE 7 | TRAINING OPPORTUNITIES: I-CAR CALENDAR OF EVENTS 10 | A MESSAGE FROM THE EXECUTIVE DIRECTOR 14 | AASP/MA SPONSORS

15 | AASP/MA PLANNED YEAR 54 | AASP/MA MEMBERSHIP APPLICATION 58 | INDEX OF ADVERTISERS New England Automotive Report

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AUT M TIVE STAFF PUBLISHER

ART DIRECTOR

Thomas Greco (thomas@grecopublishing.com)

Lea Velocci (lea@grecopublishing.com)

Adhesive Bonding

DIRECTOR OF SALES

MANAGING EDITOR

Alicia Figurelli (alicia@grecopublishing.com)

Jacquelyn Bauman (jacquelyn@grecopublishing.com)

January 12, 2016

EDITOR

PRODUCTION

Joel Gausten (tgpjoel@verizon.net)

Donna Greco (donna@grecopublishing.com)

Aluminum Exterior Panel Repair & Replacement

January 20, 2016

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110 Corporate: (973) 667-6922 / FAX: (973) 235-1963

Replacement of Steel Unitized Structures

January 26, 2016

Sectioning of Steel Unitized Structures

January 28, 2016

www.grecopublishing.com New England Automotive Report is published monthly by TGP, Inc., 244 Chestnut Street, Suite 202 Nutley, NJ 07110. Distributed free to qualified recipients; $48 to all others. Additional copies of New England Automotive Report are available at $5 per copy. Reproduction of any portions of this publication is specifically prohibited without written permission of the publisher. The opinions and ideas appearing in this magazine are not necessarily representations of TGP Inc. or of AASP/MA. Copyright © 2016 by Thomas Greco Publishing, Inc. Images courtesy of www.istockphoto.com

Hazardous Materials, Personal Safety & Refinish Safety

All classes held at Fuller Auto Body, Auburn, MA For more information, visit i-car.com

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA EXECUTIVE COMMITTEE PRESIDENT Molly Brodeur VICE PRESIDENT Adam Ioakim SECRETARY Gary Cloutier TREASURER Kevin Gallerani IMMEDIATE PAST PRESIDENT Paul Hendricks

AASP/MA STATEWIDE DIRECTORS COLLISION DIRECTOR Rick Starbard

AASP/MA CHAPTER DIRECTORS NORTHEAST CHAPTER DIRECTORS Alex Falzone Kevin Kyes SOUTHEAST CHAPTER DIRECTORS Michael Penacho Darlene Andrade MIDSTATE CHAPTER DIRECTORS Tom Ricci Ray Belsito, Jr. WESTERN CHAPTER DIRECTOR Peter Langone

AASP/MA EXECUTIVE DIRECTOR Jillian M. Zywien 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 Fax: (617) 695-0173 Email: jzywien@aaspma.org

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WWW.AASPMA.ORG New England Automotive Report

January 2016

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PRESIDENT’S MESSAGE

A ClEAN SlAtE It’s hard to believe as I write this message, but despite the spring-like weather, a new year is upon us. To me, this time of year represents a clean slate of sorts, and is an optimal time to take a step back and look at your entire business with a critical eye. What better way to make sure you are starting off the months ahead on the right foot?

As you think about the future of your business, please keep AASP/MA in mind, as we can be of assistance in helping you meet your goals for the coming year. Whether that’s helping you establish a connection with one of our industry partners, communicating

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through a possible equipment or technology purchase for the shop, taking action on an issue you’re experiencing or setting up an educational offering in your area, we want to hear from you! We are always on the lookout for valuable topics to address, especially ones that we know our members have recommended to us. Do you have questions about creating a business succession plan, for example? Concerns about OE certification or technical training? Please tell us – that’s what we’re here for!

Please don’t ever hesitate to contact any member of the AASP/MA Board, or our executive team at Lynch

New England Automotive Report

Associates at (617) 574-0741, with your questions, comments, concerns or suggestions. We are very interested to hear what you and your business are facing, and as an association we look forward to helping you make 2016 your most successful year yet.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA President Molly Brodeur is the Chief Operating Officer of Al Brodeur’s Auto Body in Marlborough, MA. She can be reached at (508) 485-1082 or molly@albrodeur.com

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A MESSAGE FROM THE EXECUTIVE DIRECTOR

NEW YEAR, NEW PROJECtS FOR AASP/MA Happy New Year, Members!

Recently, your Board of Directors (led by our ad hoc Bylaws Committee) concluded a yearlong effort to approve a new set of bylaws. The improved items include updates to reflect changes in technology (e.g., votes by electronic means and new membership payment options and categories) and the removal of specified chapter boards.

The previous bylaws made electronic voting and proxy votes impossible. In the case of emergencies or instances where we need immediate action, electronic voting can be extremely helpful and timely. Additionally, weather and scheduling conflicts sometimes interfere with important matters that need the Board’s approval. Proxy voting allows the Board members to weigh in by sending someone in their place or voting prior to the meeting if they will be absent. These changes will allow us to act quickly and carry out the association’s orders.

As part of AASP/MA’s ongoing mission, we want 2016 to be a year of growth. To assist us in that, we have created a new membership category called “associate members.”

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An associate member is an employee of a registered repair shop. Oftentimes, the association notices are sent to the company owner and rarely reach the technicians, shop managers, secretaries, etc. Associate membership would ensure your employees are informed and educated. We have also implemented new payment options for those joining in 2016. Non-members can now join the association for just $40 a month! Payments can either be made quarterly or in full. If you are not a current member of the association, or if you would like to add employees to your account, please check out our updated membership application on page 54.

The newly drafted bylaws also remove the specified chapters and chapter board structure formally created at the time of the merger between AASP/MA, MABA and CMARA. It was becoming increasingly difficult to attract volunteers and members willing to host, plan and execute chapter meetings and manage separate bank accounts. Instead, the Board agreed to alleviate the strain on our valued volunteers and have those duties delegated to association staff. In 2016, AASP/MA will be hosting regional meetings

in every chapter twice per year. Please check out our planned year on page 15 of this issue. Our first meeting of 2016 will be hosted on January 6 in the Midstate region at Assabet Valley Technical High School in Marlboro following our regular Board of Directors meeting. (More information can be found on page 21.)

The newly approved bylaws can be found at tinyurl.com/AASPMA-2016bylaws. The changes will improve the association’s coverage of the state to ensure all of our members are updated on regulatory, legislative and association-specific matters. Furthermore, we hope to attract more industry professionals with our new member category and payment options.

This will be a year of growth for AASP/MA, and we need our non-members to participate. We are “building the success of the auto repair industry,” and we are the only voice in the Commonwealth representing YOUR concerns. Call AASP/MA today and talk to our staff about what we are working on and how you can become involved. We need the entire industry behind us to impact change. Please join us in the fight today.

For those who are members, your continued support and participation fuels our efforts and perpetually encourages change in front of regulators and legislators. Thank you.

Sincerely,

Jillian Zywien MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

AASP/MA Executive Director Jillian Zywien has been a senior account executive at Lynch Associates for over seven years. She can be reached at (617) 574-0741 or via email at jzywien@aaspma.org.

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AASP/MA ASKS YOU TO PLEASE SUPPORT OUR SPONSORS!

AASP/MA NEWSLETTER SPONSOR

WOLPERT INSURANCE Contact AASP/MA at (617) 574-0741 / jzywien@aaspma.org for information on becoming an AASP/MA sponsor!

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

PLANNED YEAR

JANUARY

MARCH

January 6 Board of Directors Meeting Statewide Meeting

March 22 Board of Directors Meeting Statewide Meeting

MAY

JUNE

May 13 AASP/MA BBQ

May 24 Board of Directors Meeting Statewide Meeting

JULY

Date TBD AASP/MA Golf Outing

SEPTEMBER

July 26

September 23

Board of Directors Meeting

AASP/MA Clambake

NOVEMBER

September 27 Board of Directors Meeting Statewide Meeting

Date TBD New England Automotive Repair Training & Trade Show Event

For more information, visit aaspma.org or contact Executive Director Jillian Zywien at jzywien@aaspma.org or (617) 574-0741

November 12

November 15

AASP/MA Casino Night & Annual Meeting

Board of Directors Meeting

Check New England Automotive Report for updated event info throughout the year.

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LOCAL NEWS by Joel Gausten

ADALB TARGETS PRE-INSURER TEARDOWNS When is it appropriate for a shop to perform a teardown on a vehicle?

As made clear at the ADALB’s December 8 meeting at the Division of Insurance in Boston, shops that do this before an insurer has a chance to see the car might be asking for a world of trouble.

ADALB member and insurance industry representative Lyle Pare (Plymouth Rock Assurance) kickstarted a lengthy debate on how some shops are potentially creating roadblocks for insurers in settling auto body claims.

“There seems to be a trend in the industry of shops taking it upon themselves to disassemble cars prior to an insurance company’s inspection of that vehicle,” he explained. “That takes away an insurance company’s

ability to investigate that claim…I just think it’s a practice that has to stop.

We’ve had shops that claim that they’re the appraiser and they have the right to make that determination. I disagree.”

Pare added that although some shops claim that they do this in order to help insurers see all the damage, this prevents an insurer from holding insureds accountable for what they’re stating. Shops are also charging insurers for disassembly, which prevents the insurer from negotiating the teardown in advance. Additionally, he warned that some shops are disassembling vehicles that are “obvious total losses” and expecting the insurer to pay for it.

ADALB member and collision

The ADALB tackled the heated teardown issue at their December meeting.

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representative Rick Starbard agreed that the practice is a cause for concern.

“I, as a shop owner, would not tear the car down unless I knew who was paying for it,” he offered. “We’re a non-referral/non-program shop, and we do have a couple of insurers that will call us and say, ‘We’re coming down to see you...Can you pull the bumper off?’ We’ll do that and charge them for it, but they requested it and we know up front that they’re paying for it.”

David A. Guertin, director of claims for Plymouth Rock Assurance, addressed the Board with his perspectives on the issue.

“I think there’s an inherent conflict of interest for a body shop to authorize teardown and repairs and

expect the insurance company to then pay for those without their authorization,” he said. “It’s important for an insurance appraiser, as part of his or her job, to not only assess the damage, but to investigate the loss in many aspects. Determining the amount of damage is only about 25 percent of what they’re having to do.

“The body shop is putting the customer in peril by even suggesting they tear it apart before we see it,” he added. “If a shop knows that there’s an insurance company involved and has an appointment to come out and see the vehicle, they shouldn’t touch it.”

ADALB member Bill Johnson expressed the viewpoint that it is the consumer who has the ultimate say on pre-insurer teardowns, stressing that it is the responsibility of the carriers to tell their insureds not to approve the process.

“A shop works for the claimant; it does not work for the insurance company,” he noted. “If the body shop appraiser calls up the vehicle owner – the claimant – and says, ‘Hey, I want to tear your car down so I can write a complete and accurate appraisal,’ and that claimant gives permission, that appraiser’s in the right to do that...Is the insurance company on the hook for payment? I would say that’s between the claimant and the insurance company.”

Board member Joseph Coyne, Jr. cautioned that shops that disassemble “obvious total loss” vehicles prior to an insurer’s visit are doing more than just removing the opportunity for that carrier to investigate the damage.

“They’re taking away the opportunity for the consumer to retrieve as much money as they can in salvage,” he observed. “Once you dismantle that vehicle, the salvage value is worth much less. Here’s a shop costing the consumer money now on an obvious total loss.”

ADALB Chairman Gilbert Cox introduced the possibility of issuing an Advisory Ruling on the matter, while Pare suggested a possible change to the language in the state regulations to say that “all parties” must approve a

teardown before it begins. Coyne later recommended that before moving in that direction, the Board should consult with ADALB Legal Counsel Michael Powers for a closer look at the way the language is currently written and how it might be changed. The motion passed on a 3-1 vote.

Additionally, the ADALB debated the topic of whether a licensed motor vehicle damage appraiser is allowed to conduct appraisals at more than one auto body shop under the ADALB’s enabling legislation and current state regulations. After a lengthy exchange on the matter, the Board decided that it would be more appropriate for the Division of Standards to address these concerns. The Board also discussed

new language contained in the standard Massachusetts private passenger motor vehicle insurance policy as suggested by the Automobile Insurance Bureau (AIB), which states that the insurance company will pay no more to repair damage to a motor vehicle than what it pays to a referral auto body shop. Cox asked Powers to draft a letter for the Board’s review that explains to the Division of Insurance that “this provision should not be worth the paper it’s written on.” This motion passed on a 4-1 vote. More insight into the AIB is available below and in our cover story on page 48.

AiB Policy UPDATE

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

rlboro, MA 215 Fitchburg St, Ma Assabet Valley Tech •

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MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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New England Automotive Report

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LOCAL NEWS by Joel Gausten

Be f o r e

After

A before-and-after glimpse of how much the AASP/MA Vocational Grant helped Assabet Valley Regional Technical High School (Marlboro).

Schools Put AASP/MA Vocational Grants to Use Thanks to the Collision Repair Education Foundation (CREF), the future of auto body education in America is brighter than ever before.

For more than 25 years, the not-for-profit organization has worked to secure donations from insurers, suppliers, technology companies, manufacturers and other industry stakeholders to support philanthropic and collision repair education activities that promote and enhance career opportunities. Each year, the Foundation awards $50,000 Ultimate Makeover Grants to schools that are in desperate need of financial assistance. To further its commitment to supporting automotive education initiatives in the Commonwealth, AASP/MA partnered with CREF in recent years to bring special Vocational Grants to the local level. Last May, the association was able to assist three schools – Assabet Valley Regional Technical High School (Marlboro), Montachusett Regional Vocational Technical School (Fitchburg) and Medford Vocational Technical High School (Medford) – that applied for but didn’t win the $50,000 Makeover Grant by providing each with an epoxy floor coating for their collision repair departments (“AASP/MA Hosts Vocational Grant Ceremony & Roundtable,” NEAR June 2015).

Assabet Valley Regional Technical High School recently completed the installation of its new epoxy coating, with students devoting several weeks to making this improvement a reality.

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“It’s amazing how it keeps the shop so much cleaner than the old cement floor that had no coating on it whatsoever,” says Assabet Auto Collision Instructor Ken Stukonis.

“I think it just changes the mindset within a shop. When people come in and look at it, they’re like, ‘This doesn’t look like an auto body shop; it looks more like a dance hall!’ We’re trying to teach the kids to have pride in themselves and pride in their school and what they do.”

David Lelievre, collision repair instructor at Montachusett Regional Vocational Technical High School, looks forward to adding the new floor to his facility during the first half of 2016.

“We’re trying to create a better appearance for the shop,” he says. “A lot of people still think of this industry as being dark and dirty. If we can make our shop look nicer, it’s very exciting. We were very excited to get this; it’s a huge thing that we probably couldn’t budget for.”

“This biggest [benefit] is going to be a nice, cleaner work area,” comments Medford Vocational Technical High School instructor RJ Searle. “We’re going to have uniformity to the floor and the way we structure [things] and put the cars in.”

In addition to working with AASP/MA in facilitating the Vocational Grants, CREF’s focus on supporting automotive education in the Commonwealth gained a wider spotlight last November when it awarded a $10,000

We’re trying to teach the kids to have pride in themselves and pride in their school and what they do.

Ultimate Collision Education “There are many different industry Makeover Secondary Runner-Up segments and career opportunities Award to Southeastern Regional Vocawithin this [field] that you can go tional Technical High School in South into,” he said. “Whether it’s working Easton. The announcement was made for a paint company, tool company November 3 at the organization’s an[or] an estimating company, there are nual industry reception during the a lot of different [professional options] SEMA Show in Las Vegas. Over out there for you that we’re working $250,000 in grants was awarded durto help make you aware of.” ing the event, which drew attendance Eckenrode added that the need for - Ken Stukonis from students, educators and industry young employees is at an all-time high representatives from across the country. due to the fact that the average age of Like the other schools that apply for the Makeover repair technicians in today’s industry is 40-plus years old.

Grant, Southeastern Regional receives a multitude of inAs he told the young attendees, “We have million-dolkind donations throughout the year. In 2015, this amounted lar, billion-dollar companies coming to us panicked, sayto nearly $15,000 in free goods in addition to the $10,000 ing, ‘We need the next generation of students’ because their provided by the Award – all by simply going through the employees are going to start to work towards retirement. free application process through CREF. That’s where you guys come in.”

“Over the years, we’ve [received] safety glasses, cases Over 140 high school and college collision school proof tape, work shirts for the students [and] body filler from grams applied for the 2015 Ultimate Makeover Grant. The 3M,” offers Southeastern Collision Repair Instructor program has given out over $3 million in donations from a William Collins. “A collision repair program is not a cheap variety of participating companies to applicant schools program to run. To have any extra help with it obviously since 2009, with 94 cents of every dollar donated to the helps us out with our budget.”

Foundation returned to collision repair schools. More inforDuring the Las Vegas presentation, CREF Director of mation on the Collision Repair Education Foundation is Development Brandon Eckenrode stressed to the students in available at CollisionEducationFoundation.org. attendance that they are worthy – and wanted – members of the automotive community.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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NATIONAL NEWS

by Jacquelyn Bauman

NEW YEAR, NEW EXPECTATIONS: What’s Coming at NORTHEAST 2016 As the New Year rolls in, it’s time to start putting your resolutions for 2016 into place. Some of the most popular ones every year are from a point of personal betterment – to quit smoking, to read more, to exercise, to drink more water or to finish that project you started back in 2010. As an industry professional, you should be working towards improving your business. Luckily for repairers in the Commonwealth, the 39th Annual NORTHEAST 2016 Automotive Services Show will be occurring just a few states and a manageable car ride away to help you achieve your goals.

Sponsored by AASP’s New Jersey affiliate and held March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ, the show will feature industry giants gathering together as vendors, speakers and peers. With new products being demonstrated and invaluable information distributed by prominent industry sources, this event is not one to be missed. Now, after a record-breaking year in 2015, exhibitors are rushing to sign up for the show, pointing to a more successful three-day weekend than ever before.

As industry technology advances at an unprecedented rate, one of the largest draws of NORTHEAST will be the vendors displaying their most important industry products.

Major paint and refinish distributor BASF, the continued Platinum Sponsor for NORTHEAST, is one company that will be bringing a major presence to the 2016 show.

“NORTHEAST is always a great event for us,” says BASF Marketing Services Manager Tina Nelles. “We have the opportunity to connect with our customers face to face and demonstrate our importance to the industry.”

National companies aren’t the only ones looking forward to the NORTHEAST experience. Walcom, out of Warwick, RI, is one exhibitor that is excited to bring its newest offerings to the 2016 show.

“Of course, the number one reason we contribute to NORTHEAST is the customers,” says Operations Manager Roman Skorik. “We’re always looking for new customers and the opportunity to introduce new products to them. This is the perfect chance because it’s right in our backyard, so it’s 26 January 2016

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a good area for us to service.”

One item that Skorik is proud to reveal at the Secaucus show is Walcom’s upcoming carbon fiber spray gun, which will be finished for production in early 2016. For shops that consistently work to bring their business to the forefront of technology changes, this is not a product to be missed.

There will be plenty of suppliers at NORTHEAST, including industry giant PPG. Having been a major proponent of the NORTHEAST Automotive Services Show for a number of years, this paint supplier understands the advantages that come from participating in and attending the largest regional trade show of its kind. Due to its success in 2015, PPG will be expanding its booth by 1,500 square feet in order to accommodate its new, eye-catching Show Truck, which will showcase all that the company has to offer.

“We have a great deal of customers who attend this show, and we want to show our support for them," says PPG Regional Manager Brad Panichella. “The show is the perfect place for us to introduce new products. Our presence there allows us to improve our customer relations. We see people that we don’t always get to see because they are busy working in their shops. It allows us to bond with them and find ways to help them run their businesses more efficiently. We remove the distraction of being on the busy shop floor so attendees can learn about what’s new at PPG and in our industry. For those unfamiliar with PPG and our offerings, it’s an excellent opportunity to learn about our products, programs and services.”

Of course, suppliers are not the only companies already gearing up for the show. After a wildly effective presence in Secaucus last year, American Honda Motor Company has secured its position in the 2016 installment. Having successfully introduced its ProFirst Certified body shop program at the 2015 NORTHEAST show, American Honda is ecstatic to demonstrate what’s new from the company at the upcoming show.

“We have an all-new booth this year so we can reach even more collision professionals with information on our

ProFirst Certified body shop program,” says American Honda Motor Company Assistant National Manager Gary Ledoux. “To demonstrate the importance of the program and following OEM repair procedures closely, we will have two collision-damaged vehicles at our booth. It will drastically display the importance of following the correct procedures and using the right tools, technology and equipment in repairs on our vehicles.”

Big things are on the horizon from the NORTHEAST 2016 Automotive Services Show; make plans to be part of this year’s installment! To find out more, visit aaspnjnortheast.com.

The 39th Annual NORTHEAST 2016 Automotive Services Show will be held from March 18-20 at the Meadowlands Exposition Center in Secaucus, NJ. Registration is now open at tinyurl.com/NE16reg.

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NATIONAL NEWS by Jacquelyn Bauman

AUtO BODY SHOP CHOICE BIll SIGNED IN WISCONSIN “Slow and steady wins the race” is an adage that is becoming increasingly relevant in regard to change in the collision repair industry. One small victory for the industry occurred on November 12, when Republican Wisconsin Governor Scott Walker signed a bill that states that car insurance companies cannot demand that repairs be made at a particular auto body shop.

Senate Bill 93 “prohibits an insurer that issues a motor vehicle insurance policy that covers repairs to a motor vehicle from: 1) requiring that repairs must be made by a particular contractor or repair facility as a condition of that coverage; or 2) failing to initiate or conclude with due dispatch an investigation of a claim for repairs on the basis of whether the repair will be

28 January 2016

made by a particular contractor or repair facility.”

The legislation also establishes that “a consumer has the right to select the motor vehicle repair facility of his or her choice.”

The success of the bill is largely due to the Wisconsin Auto Collision Technicians Associations Ltd. (WACTAL), a statewide trade association comprised of independent and dealer collision repair centers, technical colleges and businesses affiliated with the collision repair industry.

“Through the dedication and perseverance of WACTAL Board member Art Krolikowski, WACTAL lobbyist Jolene Plautz and lead bill authors Rep. Ed Brooks and Sen. Howard Markelin, WACTAL was successful in getting this

New England Automotive Report

legislation passed,” the association stated in a newsletter following the bill’s signing.

“Art's tireless efforts in working with his legislator, Rep. Brooks, and [his] many trips to the Capitol are commendable. To those members who made phone calls and met with their legislators, and attend public hearings - THANK YOU! Your efforts paid off!”

To read the bill in its entirety, visit tinyurl.com/WI-SB93.

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LEGAL PERSPECTIVE

COllECtING DIMINISHED VAlUE tHROUGH tHE BACK DOOR

by James A. Castleman, Esq.

An attorney called me last week, seeking my advice on how to deal with a Diminished Value (DV) claim that his client had been handling on his own to that point. The client had purchased a new high-end vehicle that had been hit by another car only three weeks after it left the showroom floor.

The vehicle had been badly damaged, but it was repairable.

The repairs had been made by a qualified collision repair shop and paid for in full by the insurer. Since the car was new and expensive, the client had been concerned about how the vehicle’s value would be affected by the accident and repairs.

When asked, the car dealer confirmed that, especially with today’s CARFAX and similar reporting systems, the vehicle was worth thousands of dollars less.

After having told me all of this, the attorney finally posed his question: The dealer told the client that the car was worth about $5,000 less because of the accident, but the insurer was only offering to pay $3,500 for Diminished Value. What should the vehicle owner do?

It took me a while to get my head around what was happening. Why was an insurer in Massachusetts paying for Diminished Value at all? And if it was, why wouldn’t it make sense for the client to grab whatever he could for Diminished Value under these circumstances – especially since the vehicle owner still intended to keep the car for many years?

It dawned on me that this must have been a third-party claim, i.e., the vehicle owner had made a claim against the insurer for the car that hit him. However, it turned out that this was only partly the case. The vehicle owner had made a first-party claim with his own collision insurance carrier, who had paid for the repairs, but he had made a completely separate third-party claim for Diminished Value against the insurer for the car that had hit him.

Ultimately, I told the other attorney that it would be his client’s choice on how to proceed, which would involve making an informed business decision. Might he be able to negotiate a few more dollars from the insurer? How sure was the dealer that $5,000 was an accurate Diminished Value? Was it worth trying to confirm it by asking a couple of dealers for their opinions? Where did the insurer get its figure? Did it have competitive quotes from other dealers? If the client went further, was he going to have to pay a lawyer to represent him? If so, how in the world was he going to end up with any more in his own pocket than was being offered after paying legal fees? Was the client comfortable handling the matter on his own in small claims court if push came to shove? What was it worth to him to get $3,500 in hand now, rather than taking the chance that he might get $5,000 many months down 32 January 2016

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the road if a small claims magistrate ruled in his favor – and after spending several hours at his local district court?

The situation got me thinking. Are too many claimants foregoing an attempt to collect Diminished Value when perhaps they should make more of an effort to recoup it?

ThE BASIC RulES “Diminished Value” is the inherent decrease in value that a vehicle incurs because it has been involved in an accident, even if it has been repaired.

It may be fair to ask why a car would be worth any less if it had been competently repaired by a qualified, skilled technician. I have been told by more than one person in the collision repair industry that, especially for older cars, sometimes a repaired vehicle is a better value. After all, if you are replacing worn or rusted parts with all new or reconditioned ones (and you are putting a new coat of paint on a vehicle that has lost its sheen), isn’t it actually in better condition than before it was damaged?

The reality is that (for almost all cars) once a vehicle has been in an accident, it is worth less than a similar car that has been accident-free. This is the case no matter how well it had been repaired. Further, qualified experts can put a dollar amount on that decrease in value by looking at comparable sales of similar vehicles and other market value factors.

If a person’s car has been in an accident, the damages that the car owner has suffered are not limited to just the cost of repair. They also include the Diminished Value that the car has incurred. If the vehicle owner were to try to sell his car the day after repairs were completed, then he would get less for that vehicle and would bear the additional monetary loss caused by it having been in an accident.

Despite this, two cases decided by the Massachusetts Supreme Judicial Court have made it clear that a car owner cannot collect damages for Diminished Value from his or her own insurer on a first-party collision or comprehensive claim.

What the insurer is required to pay is governed by the insurance policy that covers the car. That policy is a contract between the vehicle owner and the insurer, and it defines and limits what an insured can collect for his or her premium if the car is damaged in an accident. Diminished Value is not part of what the insured can collect.

However, neither the vehicle owner’s insurance policy nor the two legal cases that addressed the issue have anything to say about what a car owner can collect from a third party that negligently caused damage to a claimant’s car. Rather, what the vehicle owner can collect is governed by standard

“tort” law, which says that a negligent party is liable for all reasonably foreseeable damages resulting from their negligent conduct. The insurer for the third party is responsible for paying all of those damages, up to the third party’s policy limits.

seek to get reimbursed for that $10,000 from the third party’s insurer. If the responsible party purchased only $10,000 worth of property damage liability coverage, then there is going to be nothing left to cover your Diminished Value damages. The full $10,000 is going back into your insurer’s pocket.

SPlITTIng ThE ClAIM For several years, I have advised that Diminished Value damages are not recoverable on first-party claims, but that they very well may be recoverable on third-party claims.

Therefore, I have generally told people who want to collect Diminished Value damages to seek them from the responsible party’s third-party insurer. Otherwise, they can forgo the Diminished Value damages and just look to get full payment for the cost of repair from their own insurer.

Until I received the attorney’s call last week, I had really not thought much about the mechanics of how to handle splitting a claim by looking to have your own collision or comprehensive carrier pay for the cost of repair and the third party’s insurer cover additional damages for Diminished Value. There are, however, no significant impediments standing in a claimant’s way from doing this, and I have always recognized that other parts of a claim could be handled in this manner, particularly substitute transportation damages (i.e., seeking repair costs from your own insurer, but getting paid for a rental car from the third party’s carrier – a very common situation). Acknowledging this, I was encouraged to look even harder at the Diminished Value claim split, since I know that a claimant can often collect more for a rental car from a third-party carrier than from his or her own insurer. The other insurer’s responsibility for the cost of rental is not limited by the claimant’s insurance policy daily dollar limits or by the 30day maximum on first-party rental coverage.

Please understand that there are some limitations on seeking Diminished Value from the third party’s carrier. First, the third party has to have been legally responsible for the damage. If you rear-ended the other guy, you are not going to be able to collect. Unlike in first-party coverage (which pays in all instances), collecting on a third-party claim requires you to establish that the other operator was negligent – and that this negligence caused your damages. Second, even if the third party was primarily responsible for the damage to your car, if you also had some degree of negligence (no matter how small), the amount that you can collect is going to be reduced by the percentage of comparable negligence attributable to you. Insurers are notorious for trying to assess some degree of negligence to third-party claimants. Third, the amount that you can collect is going to be limited by the policy limits that the third party has, i.e., how much property damage coverage they have chosen to purchase from their insurer.

The question of how much effect the third party’s policy limits have is further complicated by how much your own insurer is seeking from the third party’s insurer under “subrogation” principles. Even though your own insurer is obligated to pay you the full amount of the cost of repair without you having to show negligence, they are “subrogated” to your rights against the other party’s insurer up to the amount that your insurer pays on your behalf. If your insurer pays $10,000 for the repair of your vehicle, they can

PuRSuIng ThE ClAIM Notably, if they are going to pursue Diminished Value damages from a third-party carrier, most claimants should be able to handle the process on their own. It is not that difficult to pick up the phone and call the responsible party’s insurer or to submit a claim in writing. Be aware, however, that any such claim should be backed up by facts and documentation.

Some examples may be a police report of the accident that indicates that the other driver was responsible and, of course, a written opinion from an expert (such as a car dealer) as to the Diminished Value incurred.

If making an oral or written claim does not get the desired result, then the next step may be to bring a small claims action in the claimant’s local district court. A claimant does not need a lawyer to bring a small claims action. Also, under a quirk in the law in Massachusetts, a small claims action may be brought for any dollar amount for motor vehicle property damage claims, and is not limited by the usual $7,000 limit on small claims matters. If someone is claiming $15,000 in Diminished Value damages, then they can still use small claims court.

Also, there is a special statute that says that if a person brings a small claims action for motor vehicle property damage, then that case does not affect any separate civil case that may be brought for personal injury damages. The cases are treated completely separately, and neither prejudices the other.

In bringing a small claims action, the responsible person not just his or her insurer - should be named as a defendant.

The insurer has an obligation to defend its insured and to pay any judgment entered against him or her, but that insured is the real party being sued. That being said, it is still good practice to name the insurer as an additional party. This ensures that they get notified of the action rather than relying on their insured to give them notice.

In some cases, an insurer may seek to remove a small claims action from small claims court to the ordinary civil docket. If that occurs, the claimant may then be better served by hiring an attorney. There is additional protection for the claimant in such a situation. By statute, if the insurer removes a property damage claim brought against them and loses, then the court must award the claimant his or her legal fees as part of the damages. Be aware that this applies only to property damage claims (such as for Diminished Value), and only to insurers that remove those claims.

ConCluSIon In my experience, most claimants don’t bother trying to collect Diminished Value for vehicles that are repaired with their own insurer’s collision coverage dollars, but maybe more claimants should think about also seeking Diminished Value damages if a third party has caused an accident. After all, they have lost value in their vehicle because of that continued on page 58 New England Automotive Report

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VENDOR SPOTLIGHT

by Joel Gausten

MATTIE IMPORTS: WHERE CUSTOMERS BECOME FAMILY In today’s wholesale parts business, building a solid reputation means always being there whenever – and wherever – a customer needs you. Since 1981, Mattie Imports in Fall River has perfected the art of being in the right place at the right time with the right part. Covering Southeastern Massachusetts, all of Rhode Island and parts of Connecticut, the dealership’s parts department supports shops by maintaining one of the most impressive delivery services in the area.

“For in-stock parts, they can call me until about 3pm and I’ll make sure they see it that day,” offers Parts Manager Bob Moniz. “If it’s not in stock and they call me before 1pm, they will see it the next day. We’re not going to treat you like a customer; we’re going to treat you like family.”

Mattie Imports’ dedication to providing an exceptional experience is demonstrated by their commitment to OEM collision and mechanical parts. With aftermarket products on the rise, the dealership works to combat the spread of these often-inferior items by offering price matching through CollisionLink to allow shops to receive original equipment parts at non-OE prices.

“With CollisionLink, we’re able to match some aftermarket prices,” Moniz explains. “I would rather see a car with a factory part that’s designed for it than an aftermarket part that somebody had to make fit to work. Even before we started using CollisionLink two years ago, we would always try to work with [our] customers and get the factory part for them. When customers find out about CollisionLink and realize the benefits, a lot of them become strong on using it and really like the way it works.”

An 18-year parts industry veteran, Moniz started at Mattie Imports 16 years ago as a driver and has been in his current management position for a decade. He works alongside a solid team comprised of driver Rick Rose (who has been with Mattie Imports for 15 years) and parts sales associates Chris Reis (a 14-year veteran of the dealer) and Ross St. Laurent (who has been with the operation since 2012). Together, they fulfill an ever-growing order list that has expanded greatly in recent years thanks to the ongoing popularity of the Audi brand, which currently comprises

Left to right: Bob Moniz, Rick Rose and Ross St. Laurent of the Mattie Imports parts department (not pictured: Chris Reis)

Mattie Imports’ visually stunning parts delivery truck

45 percent of Mattie Imports’ overall business.

“They just make a phenomenal car,” Moniz says. “The technology, the fit, the comfort, the safety…everything is just there.”

With their parts in such high demand, Moniz and his team make sure that every order they receive is treated with the utmost respect.

“We really want to give good service; we want to see all of our customers happy,” he says.

“The shops’ customers might not be ours directly, but they’re ours indirectly because we represent the brand.”

In addition to growing business through exceptional customer service, Mattie Imports spreads the word about their parts services every time Rose hits the road. Last July, the department had the delivery truck wrapped to make it appear transparent. Whether on the highway or at a body shop, this awesome visual gets attention.

“Customers love the truck; nobody can believe it,” Moniz says. “They think the truck’s amazing.”

Whether you are in Providence or Martha’s Vineyard, a call to Mattie Imports will get you the VW and Audi parts you need. With cycle time demands at an all-time high, there’s nothing more important than working with a parts department that treats you like one of the family.

The Mattie Imports parts department is open Monday through Friday from 8am to 5pm and Saturday from 8am to noon. For more information, please call (508) 678-5555 or email bob.moniz@mattieimports.com.

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NATIONAL FEATURE by Joel Gausten

A NEW CLASS: Inside the Push for Shop Classifications In many ways, the countless technological and educational demands in today’s shops have turned the collision repair field into the new Wild West. These days, it’s very common to find a new, entry-level shop operating down the street from a decades-old facility that hasn’t made any new investments in years. A few blocks away, a high-quality, heavily certified center might be building business by showcasing the latest in aluminum repair equipment and practices. Now, keep this scenario in mind when considering that all three of these shops currently operate under the same Labor Rate. Does that make sense to anyone reading this? It has certainly never made sense to the Auto Body Association of Rhode Island (ABARI), who recently succeeded in doing something to truly differentiate between the shops in today’s marketplace – and make sure those on the higher end of the spectrum receive the compensation they deserve.

In June, the Rhode Island House and Senate passed ABARI-created legislation that called for the state’s Department of Business Regulations to classify shops as either “Class A” or “Class B” facilities. To be classified as a “Class A” repair business, a shop must:

be certified by at least one automobile manufacturer for the repair and refinishing of aluminum, high-strength steel or another metal or alloy; provide a written limited lifetime warranty against workmanship defects; maintain a system for documenting customer complaints and responses to service; and provide evidence of certification for all technicians employed at the auto body repair facility.

Additionally, each insurer “must conduct a separate and distinct auto body Labor Rate survey for each classification of auto body shops…annually to determine a separate and distinct prevailing auto body Labor Rate for each classification of fully licensed auto body repair facilities.”

Under the new law, an insurer is barred from using rate survey information or contract rates from any shops “with which it has a formal agreement or contract to provide auto body repair services to insureds and/or claimants.” A designated Class B auto body repair facility may apply for Class A certification at any time in a calendar year with an application fee of $300. At the time of this writing, the law was expected to go into effect later this month once the final points for implementation were ironed out by the Department.

ABARI’s latest home run in the political arena follows a long line of similar victories in recent years, including the passage of various bills addressing (among other things) steering, payment based on the use of P-Pages and direct payment to rental companies. Additionally, the association was successful in prompting the passage of legislation that establishes that all vehicles with $2,500 or more in damage (as appraised by a licensed appraiser) cannot be repaired by a facility or paid for by an insurer based solely upon a written estimate from a shop. Considering ABARI’s already strong presence at the State House, it comes as little surprise that the association again followed the legislative route to address another critical industry issue.

“We saw [this bill] as the most reasonable solution to the problem of Labor Rate reimbursement,” explains ABARI Vice President Randy Botella. “There are different levels of shops; the disparity between what it’s going to take to run each of those shops can’t be addressed with one Labor Rate across the board. Basically, the people who make the biggest investment and are on the cutting edge of collision repair wind up penalized because they receive nothing for their investments.”

One very important element of the bill’s success was the fact that it didn’t impose anything on the shops it aimed to serve.

“It doesn’t mandate anyone to do anything,” Botella insists. “Full collision repair-licensed shops in this state could do absolutely nothing and it wouldn’t affect them negatively at all. This was only for the shops that were continuing to make investments in equipment and training in order to prepare for full aluminum repair as well as the cutting edge technology on the cars today.

“I don’t think the industry should be set at such a high standard at the entry level that it drives the investment costs so high that nobody can ever open up a new shop,” he adds. “I do think there is going to be room in the market for the different levels of shops; not everybody is going to work on all-aluminum body Porsches, Mercedes-Benzs, BMWs, Jaguars and Land Rovers. There will be plenty of

Hyundais, Toyotas, Kias and GMs to be worked on. But as the years march on, I’m sure there will continue to be added expenses and increases on what it’s going to take to fix the cars, and we’ll have to address that. But I don’t think that every single body shop out there should have to be invested to that top level.”

Interestingly, ABARI also experienced less resistance than expected from the insurance industry in making this legislation a reality. “[Insurance carriers] were the ones that had actually brought to our attention the dramatic difference in investment in shops,” recalls Botella. “They were the ones who pointed out to us that it made it impossible to have a happy medium; you had some shops with [large] investments, and you had the shops that had small investments. They felt that what they were paying in some shops may have been adequate, and they acknowledged that it would be inadequate in other shops.”

ABARI Legal Counsel Jina Petrarca-Karampetsos credits the bill’s passage to the fact that it aims to support consumers as well as body shops.

“How could you argue with the idea that the consumer should know whether or not the shop they’ve chosen can actually fix his or her car?” she reasons. “Anything that gives consumers more notice and more information is good for both industries. Insurance companies have valid points and body shops have valid points, but the person who the Legislature cares about is the consumer.”

Along the way, ABARI utilized the services of noted industry educator and frequent New England Automotive Report contributor Larry Montanez (P&L Consultants), who testified in both the House and Senate on how the rapid changes that have occurred in the industry have led to many shops making larger-than-ever investments in equipment and training. Botella is thankful for what the industry veteran brought to these discussions. “[Larry] was very helpful in being able to answer technical questions and being a technical expert,” he shares. “It removed any question of the legitimacy of what we were saying, as opposed to just having lawyers and lobbyists make statements. It’s a lot more powerful to have someone who is as well-educated as Larry answer any questions that come up.”

In addition to providing Montanez’s expert perspectives, ABARI worked hard to grow its position at the State House by devoting years to properly educating regulators on the issues affecting repairers and vehicle owners.

“We made sure that anything that we brought forward was 100-percent accurate and honest,” Botella says. “We also made sure we never left anything out or were disingenuous in anything that we said. Over the course of more than 16 years, that credibility was built upon again and again.”

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Of course, ABARI is not alone in its efforts to promote shop classification in the field. For decades, the Collision Industry Conference (CIC) has encouraged industry stakeholders to utilize the group’s “Minimum Recommended Requirements for a Class A Collision Repair Facility” (available online at tinyurl.com/o5xhepg). Recently, the CIC Definitions Committee has been working on an updated draft of the document. Still under debate by the CIC body at press time, the new incarnation would divide the Forum’s “Class A” definition into three categories: Non-Structural/Cosmetic: Capable and equipped to perform refinishing and light metal repairs not requiring pulling or welding on structural components of the vehicle Structural: Capable and equipped to perform repairs and refinish work on steel vehicles including structural repairs and welding on replacement structural components Structural Advanced Materials and Techniques: Capable and equipped to perform repairs and refinish work on steel and advancedmaterial vehicles such as aluminum, carbon fiber, etc., including structural repairs and replacing structural components Despite this ongoing work, a growing call to put an end to CIC’s role in the “Class A” discussion can be heard throughout the industry. At a time when more and more OEMs are pushing their own certification programs – coupled with CIC’s inability to police and enforce its recommendations to the industry – is the CIC Definitions Committee’s work even necessary? Addressing the Committee from the audience during the forum’s meeting in Las Vegas last November, Texas-based repair professional Dustin Womble answered that question with a resounding no.

“The ‘Class A’ definition came out almost 20 years ago,” he said. “We had vehicles that were on the road that are different than the vehicles that we have on the road today. It was an attempt to give a little bit of a heads up to part of our industry on [the shops] they should be looking for as their Direct Repair Programs evolved. Now, Direct Repair Programs have evolved many times over; cars have changed many times over…The real-word situation is that this Class A definition is irrelevant in today’s market.”

While his views on CIC’s efforts are not as strong as Womble’s, Botella nonetheless has reservations over the endeavor’s ultimate effectiveness in the industry.

“I think they put in a good effort, but it takes a meeting of the minds to make it happen,” he offers. “You just can’t write a list and say, ‘This is what we want it to be’ and then have it executed. You have to have the support of the 42 January 2016

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shops, legislators and governing bodies, and it helps to find common ground with the insurance industry on what is best for the consumers.”

When asked for words of wisdom for other entities working to establish relationships in the Legislature as fruitful as ABARI’s, Petrarca-Karampetsos advises industry members to always keep their goals and expectations realistic – and stay armed with the right ammunition.

“You have to fight fire with fire,” she says.”When the insurers go up with all of their figures and very nice presentations and booklets, you have to go up with those things, too. You have to have the counter-data packaged in the same way they packaged it.”

In Botella’s mind, the biggest difference between success and failure in getting a bill of this nature passed is the amount of patience the proponent can muster.

“The problems that we have in the industry didn’t come on in one day, and they’re not going to go away in one day with one change,” he says. “One thing I think everyone needs to know is that it will take a group of people; it needs to be an association with multiple people who help or start a plan to put things forward.”

Although it can often be a long and frustrating journey, the road to the State House is one that ABARI travels often – and will likely hit again as soon as other issues impact the potential success of the shops and industry it serves.

“I can’t imagine why anyone would shy away from legislation,” Petrarca-Karampetsos says. “You have to legislate the policies you need to fix the issues in our industry. It may not be the exact legislation that you want, but it might come close, and that’s something.”

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COVER STORY

by Joel Gausten

THE SPIRIT OF UNITY:

On the first day of December, AASP/MA kicked off the final month of 2015 with the Western Chapter Holiday Party at the Slainte Restaurant in Holyoke. The Tuesday night event provided attendees with an amazing steak dinner and a special presentation by association representatives on the group’s many activities and successes over the past year.

AASP/MA Executive Director Jillian Zywien updated shop and vendor members on the group’s legislative endeavors in recent times. Taking what she called “a branch approach” to addressing industry issues, AASP/MA is actively pushing for the passage of five bills it has filed at the State House. In addition to the current incarnation of the long-running Labor Rate Bill, the pieces of legislation include two bills designed to change the Auto Damage Appraiser Licensing Board (ADALB). One bill would move the Board (currently housed under the Division of Insurance) to the Division of Professional Licensure, which oversees nearly 30 licensing boards in the Commonwealth and includes an investigative unit. The second ADALB-related piece would add a consumer representative as well as a representative from the Attorney General’s Office to the Board.

“We think the consumer would help balance

AASP/MA Hosts Holiday Party, Provides Legislative Review

out some of the things we’ve been facing on the inspection sticker issue and general things that they are concerned about,” Zywien explained.

The fourth AASP/MA bill currently at Beacon Hill is a consumer notice piece that would enhance the antisteering law (“The Push Continues: AASP/MA Announces New Legislation,” NEAR March 2015).

“That’s a huge issue for our members,” Zywien said. “We hear weekly about your customers being steered away from your shop [out of fear] from their insurer that they’re doing the wrong thing.”

The fifth AASP/MA bill aims to inform a consumer when an aftermarket part could potentially void his or her vehicle warranty (“Fighting for the Consumer: AASP/MA Submits Written Testimony on Senate Bill 134,” NEAR November 2015). Information on all of the bills is available under the “Legislative Initiatives” tab on the AASP/MA website (aaspma.org).

While these legislative endeavors were still underway at press time, a number of crucial industry changes were officially put into effect in 2015.

Bolstered by the addition of collision industry members Bill Johnson (Pleasant

Street Auto, South Hadley) and Rick Starbard (Rick’s Auto Collision, Revere), the ADALB rescinded their previous Advisory Ruling that the use of photos or video could be accepted as “personal inspection” in the initial appraisal process (“ADALB Rescinds Controversial Advisory Ruling,” NEAR September 2015).

Zywien noted that it was the first time that the Board had reversed a previous position. More recently, the Board filed a Ruling regarding the utilization of used sus-pension parts in the repair of a damaged automobile (“ADALB Issues Advisory Ruling on Used Parts,” NEAR November 2015).

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Left to right: AASP/MA Executive Director Jillian Zywien outlined the association's work at the State House. Peter Langone (left) and Andre Marcoux were just two of the attendees who got into the holiday spirit. AASP/MA executive team member Peter D'Agostino discussed AASP/MA’s new chapter structure. “[The Ruling] told licensed appraisers – whether they work for insurance companies or body shops, it doesn’t matter – ‘Hey, if you’re writing used suspension parts, we are telling you today that we believe that may impact the operational safety of the vehicle,’” offered AASP/MA executive team member Peter D’Agostino.“I encourage you to go online and look at the Advisory Ruling. That is meant to be a tool for the shops to use as part of their negotiations...The ADALB is telling you how they’re going to rule if you bring a complaint to them.”

(Videos of past ADALB meetings are available in the “Members Only” section of aaspma.org.)

Away from the legislative arena, the AASP/MA Board of Directors has been hard at work updating the association’s bylaws. One of the biggest changes to impact membership in 2016 will be the elimination of Board structures within AASP/MA chapters. Now, chapter activities will be overseen by the AASP/MA executive team. This decision was made to help relieve the pressures on volunteer chapter Board members to conduct their own meetings and organize their own events.

Two special gatherings – one a special event (such as a Clambake or BBQ), the other a joint Board/chapter meeting – will be held in each of the association’s four chapter regions twice a year.

“We’re going to be one organization as we’ve always been,” noted D’Agostino. “We just won’t have additional leadership levels.” (For additional insight into the new bylaws, 50 January 2016

read the Message from the Executive Director on page 10.)

Later, D’Agostino updated the room on recent – and potentially very important – actions by the Automobile Insurance Bureau (AIB), a private association comprised of member insurance carriers.

“They have filed what is considered by them and their members [to be] standard language for automobile insurance policies in Massachusetts,” he said. “If you remember, years ago there used to be just one insurance policy, and all the carriers had the same insurance policy and same rates when we were regulated. When we were deregulated, all of that went away. Now, each carrier has their own insurance policy.”

D’Agostino warned that the filings feature “some absolutely concerning things” for the Massachusetts motoring public. On the top of the list is the fact that the language aims to regulate what consumers can be reimbursed for by their insurers.

“They will not pay for any towing costs that are unregulated,” he said.

“There are only two that are regulated – hooking the hook to the car, and the storage.

“If a consumer has an accident and there’s antifreeze or oil on the ground that somebody needs to be paid to clean up, and if there’s some special equipment that is used at the site for just hooking into the vehicle, all those [expenses] are 100 percent the cost [of] the consumer,” he added.

While the language had not been officially adopted by any Massachusetts

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insurers at press time, D’Agostino warned that some insurance appraisers might already try to convince shops that it was indeed the law of the land.

“Look at what they’re showing you,” he advised. “It will say ‘Automobile Insurance Bureau.’ That is not in a policy approved by the Division of Insurance...The carrier must file their own plan.”

AASP/MA plans to host a special membership meeting on the AIB situation on January 6 at Assabet Valley Regional Technical High School in Marlboro. (See page 21 for more information.)

“If these changes start getting adopted, it could have a significant impact on your business,” D’Agostino said. “You want to know that before it happens.”

Above all, the Western Chapter Holiday Party served as an opportunity for the association to give thanks to its member body shops, vendors and regular sponsors for their valuable involvement.

“We’re working every day on your behalf,” Zywien said. “We’re the only voice in the Commonwealth, and we really appreciate your support. We know it’s important for you to save money and take cost into consideration, so we appreciate you putting your faith in us and spending money with AASP/MA.”

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2016 MEMBERSHIP APPLICATION MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

As a member of the Alliance of Automotive Service Providers of Massachusetts (AASP/MA), I will abide by the association’s bylaws and code of ethics. I understand that membership in AASP of Massachusetts is non-transferable, and I must remain current with my dues in order to be a member in good standing. I understand that if I discontinue my membership that I must immediately cease using any association promotions, logos or materials. Additionally, I understand that as part of my AASP of Massachusetts membership, I will receive New England Automotive Report, the official publication of AASP of Massachusetts, faxes, emails and other mailings.

*** PlEASE tYPE OR PRINt lEGIBlY *** Primary Contact Name: ________________________________________________________________________________________________ Business Name: ______________________________________________________________________________________________________ Street Address ________________________________________________________________________________________________________ Street

City

State

Zip

Mailing Address ______________________________________________________________________________________________________ Street

Phone Number ( E-mail Address

City

)____________________________________ Fax Number (

State

Zip

) __________________________________________

________________________________________ Web Site Address ____________________________________________

MEMBERSHIP TYPE (check one) Collision Repair Shop

ACCOUNTS PAYABLE CONTACT: Name: __________________________________________________

Mechanical Repair Shop

Phone Number: __________________________________________

Both, Collision & Mechanical Repair Shops Vendor

Email:____________________________________________________

RS Number (if applicable) ________________________________ ANNUAL MEMBERSHIP DUES

AASP/MA CHAPTER (check one) MidState Southeastern Northeastern Western

(The AASP membership year is from January 1 to December 31, 2016)

$40/month

$115/quarter

$425/year - BESt VAlUE!

Monthly & Quarterly Dues are Automatic Credit Card Transactions ONLY*

NEW! Political Action Committee (PAC) Donation ...............$_____ Personal Contributions Only

ADDITIONAL CONTACT FOR NEWSLETTERS AND LEGISLATIVE UPDATES Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________ Email: ____________________________________________________ Name: ____________________________________________________

Check or Cash

Credit Card:

Visa

MasterCard

Amex

Card Number: __________________________________________ CID Number: ____________ (3#s on back for Visa, 4 on front for AMEX) Expiration Date: ________________________________________ Name on Card: __________________________________________ Billing Address of Credit Card: ____________________________

Email: ____________________________________________________

________________________________________________________

Name: ____________________________________________________

________________________________________________________

Email: ____________________________________________________

Signature: ______________________________________________

Name: ____________________________________________________

Date: __________________________________________________

Email: ____________________________________________________

PlEASE COMPlEtE tHIS MEMBERSHIP APPlICAtION AND REtURN It WItH PAYMENt tO AASP-MA OFFICE. 12 Post Office Square, 6th Floor • Boston, MA 02109 Phone: (617) 574-0741 | Fax: (617) 695-0173|jzywien@aaspma.org As required by the U.S. Tax Code, AASP of Massachusetts, Inc. informs its members that 75% of the dues paid to the association are tax deductible. The remaining 25% is allocated to legislative activities and is not tax deductible.

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LEGAL PERSPECTIVE continued from pg. 33 person’s actions. If the rules are followed (and the limitations understood), it certainly can be done, usually without having to hire a lawyer and invest an enormous amount of time or effort.

MASSACHUSETTS BUILDING THE SUCCESS OF THE AUTO REPAIR INDUSTRY

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AUT M TIVE Attorney James Castleman is a managing member of Paster, Rice & Castleman, LLC in Quincy, MA. He can be reached at (617) 472-3424 or at jcastleman@

prclawoffice.com.

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