New England Automotive Report March 2024

COLONIAL NISSAN

104 Mystic Avenue

Medford, MA. 02155

Phone Number: 781-395-3025

FAX Number: 781-475-5063

CITY SIDE SUBARU

790 Pleasant Street

Belmont, MA 02478

Phone Number: 617-826-5013

FAX Number: 617-489-0733

NORTH END SUBARU

757 Chase Road (Rte 13)

Lunenburg, MA 01462

Phone Number: 877-289-0053

FAX Number: 978-582-9843

COLONIAL

FAX

COLONIAL HONDA OF DARTMOUTH

225 State Road (Rte. 6)

Dartmouth, MA. 02747

Parts Direct: 508-997-2919

FAX Number: 508-730-6578

COLONIAL FORD OF PLYMOUTH

11 Pilgrim Hill Road Plymouth, MA 02360

Phone Number:

FAX

COLONIAL

NORTH END MAZDA

757 Chase Road

Lunenburg, MA. 01462

Phone Number: 800-322-1241

FAX Number: 978-582-9841

COLONIAL VOLKSWAGEN

89 Turnpike Road (Rte. 9)

Westborough, MA 01581

Phone Number: 888-322-6570

FAX Number: 508-616-0445

COLONIAL VOLKSWAGEN OF MEDFORD

162 Mystic Avenue

Medford, MA. 02155

Phone Number: 781-475-5200

FAX Number: 781-391-3506

WELLESLEY VOLKSWAGEN

COLONIAL

231 Linden Street

Wellesley, MA. 02482

Phone Number: 800-228-8344

FAX Number: 781-237-6024

Contact: Dan Bettencourt / Wholesale Parts Manager

COLONIAL SOUTH CHEVROLET

361 State Road (Rte. 6)

Dartmouth, MA 02747

Phone Number: 508-996-6266

FAX Number: 508-979-1219

COLONIAL CHEVROLET

171 Great Road

Acton, MA 01720

Phone Number: 800-787-2787

FAX Number: 978-263-8587

COLONIAL WEST CHEVROLET

314 John Fitch Highway

Fitchburg, MA. 01420

Phone Number: 978-345-5532

FAX Number: 978-345-1152

DEPARTMENTS

EXECUTIVE DIRECTOR’S MESSAGE

6 | Rule No. 39, Rule No. 40 and Rule No. 42 by Evangelos “Lucky” Papageorg

LOCAL NEWS

10 | Third Time’s a Charm? Unlikely at the ADALB!

12 | Mark Your Calendars: AASP/MA Chapter Meetings Return this Spring by Alana Quartuccio

WHERE ARE THEY NOW?

16 | Still Informed, Still Passionate, Still Into Cars: Retired ADALB Attorney Victor Fanikas Reflects by Alana Quartuccio

VENDOR AFFINITY PROGRAM SPOTLIGHT

20 | Torque Financial Group by Alana Quartuccio

INDUSTRY UPDATE

30 | Reliability, Excellence & Industry-Leading Support: Reliable Automotive Equipment

LEGAL PERSPECTIVE

32 | The Massachusetts Appraisal Clause: A Wholly Unworkable Solution by Sean Preston, Coverall Law

24 | Prepare for the Future: New Englanders Head to New Jersey for NORTHEAST® 2024

by Chasidy Rae Sisk

7 | AASP/MA MEMBER APPLICATION

21 | AASP/MA VENDOR AFFINITY PROGRAM SPONSORS

28 | Act II: Waiting for Progressive to Act in Good Faith by Chasidy Rae Sisk

EVANGELOS “LUCKY” PAPAGEORG

Rule No. 39, Rule No. 40 and Rule No. 42

Rule No. 39: “There is no such thing as a coincidence.”

Rule No. 40: “If it seems like someone is out to get you, they are.” Finally, Rule No. 42: “Never accept an apology from someone who just sucker-punched you!”

These three rules are easily recognized by those who ever watched and listened to Leroy Jethro Gibbs on NCIS. If you keep all three of these rules in mind and realize that they are sound, valid and have a great foundation philosophically, no one stands a chance to pull the wool over your eyes. Sadly, the insurance industry is under the misconception that collision repairers are not aware or bright enough to know these three basic rules.

All three of these rules have been evident at many Auto Damage Appraiser Licensing Board (ADALB) meetings held in the past – but never more so than at the January 23, 2024 meeting. The Board once again demonstrated the control of the Division of Insurance (DOI), the backroom manipulations and potential deceit at play to continue to protect the interests of the insurance industry, rather than “promote the public welfare and safety” as they were created to do under MGL 26 8 G. Rule No. 39 was clearly demonstrated on the heels of a multi-year court case failure to get a judge to override the language and definition of who the appraiser is in 212 CMR 2.0, specifically 2.04 (e) where it reads in part, “If the appraiser (emphasis added) determines that preliminary work or repairs would significantly improve the accuracy of the appraisal, he or she shall authorize

STAFF

PUBLISHER

Thomas Greco | thomas@grecopublishing.com

VICE PRESIDENT/SALES DIRECTOR

Alicia Figurelli | alicia@grecopublishing.com

EDITORIAL/CREATIVE COORDINATOR

Alana Quartuccio | alana@grecopublishing.com

OFFICE MANAGER

Donna Greco | donna@grecopublishing.com

PRODUCTION COORDINATOR

Joe Greco | joe@grecopublishing.com

MANAGING EDITOR

Chasidy Rae Sisk | chasidy@grecopublishing.com

PUBLISHED BY: Thomas Greco Publishing, Inc. 244 Chestnut Street, Suite 202, Nutley, NJ 07110

Corporate: (973) 667-6922 / FAX: (973) 235-1963 www.grecopublishing.com

@grecopublishing

Brian

ZONE 1

Mike Penacho

John Studer

Dan Wenzel

Affiliate Director

Al Correia

Brent Dabrosca

C.J. Ellis

Jimmy Kelsey

Russ Oagles

Doug Begin

ZONE 2

Ray Belsito

Brenda Lacaire

the preliminary work or repair with the approval of the claimant and shall complete the appraisal after that work has been done.” It is no “coincidence” that the day after the insurer withdrew its case “with prejudice” that the issue was raised by insurance representative Board member Peter Smith.

Again, through the pressure, control and manipulation of the insurance industry and because there are two new members of the ADALB, including an insurer, the revisions to 212 CMR 2.0 are being revisited again. This is the second time these revisions will be revisited in approximately the last three years after having laid dormant and unaddressed for nearly five years at the DOI. The fact that a revised version of 212 CMR 2.0 submitted in 2016 was not taken up and approved in that five-year period, gives more credence to Rule No. 39. It was no coincidence that the changes finally agreed upon by the thenseated ADALB (Johnson, Starbard, Coyne, Pare and Cox), which addressed and cleared up many of the ambiguities in regulation language – and removed much of the “wiggle” room –was not enacted upon as swiftly as it should have been. History then repeated itself as it has many times before.

Repeatedly, when the Board begins to agree on issues which do not benefit the insurance industry, Board members (especially the insurance representatives on the Board) are swapped out. The following events were memorialized in a letter written by thensitting Board member Bruce King. In his letter, he described an continued on pg. 41

Don Dowling

ZONE 3

Gary Cloutier

Andrew Potter

Brian Stone

Affiliate Directors

Mike Nawrocki

McColl Rhodes

ZONE 4

Dean Luther

Jeff White

Affiliate Directors

J.R. Force

Simon Frietas

Angelo Memmelo

Jayce Mitchell

Gregg Tanguay

Scott Varney

Membership Application 2024-2025

Fax: 973-235-1963

Email: admin@aaspma.org

Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You!

BUSINESS INFORMATION

Massachusetts Shop Registration # __________________

Company’s Official Name:

Business Physical Address:

Business Mailing Address (If Different):

Total number of Staff (Techs, office, Mgrs)________

Telephone Number: ( )- -___________ Fax: ( )- -

DUES STRUCTURE. Collision Shop Annual Dues: $650 / 12 Months*

PRIMARY BUSINESS CONTACT

Name: _________________________________________________

Email: _____________________________________________

As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.

Yes � Please send me information regarding the following MONEY SAVING BENEFITS:

� Dental plan � Healthcare plan � Credit card processing � FMLA savings program � Grant writing/training � Google presence optimization � All benefits

PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION

Check# : _______________ (IF collision shop please note your RS# on the memo line of the check) OR CC #: ______________ EXP: ________/___________ CID: _________________

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Name On Card: _____________________________________________ Signature: _____

Check here � to opt out of auto renewal using this credit card information for future renewal

Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction

I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2024-2025 as provided for in this contract.

*Membership Dues are for a twelve-month period commencing on your anniversary month of membership.

REV 12/23

RECOMMENDED BY:__________________ FROM BUSINESS NAME: ___________________ REV 12/23

Third Time’s a Charm? Unlikely at the ADALB!

In 2016, a revised version of 212 CMR 2.0 was sent up the chain for approval after being reviewed by the Auto Damage Appraiser Licensing Board (ADALB) that was seated at the time. No response was received from the Department of Insurance (DOI) for years, but after three Board members were replaced in early 2019, an allegedly misplaced letter made its way to the surface, raising issues with the amendments and justifying the need for the regulations to undergo review by the new Board.

Following delays caused by the pandemic, the ADALB hashed out the minutiae and argued through semantics for over a year before finally working out all the points of contention in the regulatory language and approving the proposed amendments to 212 CMR 2.00 with a three-to-one vote in July 2022. Since then, each meeting has failed to yield an update from the DOI…until, of course, two of those Board members were replaced late last year.

With the changes at the ADALB, news arrived from the General Counsel that “because we have a newly constituted Board, the newly constituted Board should review the process on its own,” Attorney Powers reported at the December 2023 meeting.

And so the process began anew at the ADALB’s most recent meeting on January 23, commencing with Powers’ reiteration that the proposed amendments, which were reviewed and approved by the two previous Boards, need to be revisited yet again due to Carl Garcia (Carl’s Collision Center; Fall River) and Vicky Wei Ye (Bos Insurance Agency) being added to the current ADALB.

Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) expressed his frustration with this third review by pointing out, “This started before my four-year-old

granddaughter was even conceived. This is the third time the Board is reviewing these proposed amendments, and each time we approve them and submit them to Administration and Finance, we never receive a response until the composition of the Board changes again. I don’t know if that’s by design or if that’s just a coincidence, but by my recollection, there really isn't anything earth shattering in these CMRs; they were just more of a reflection of changing with the times and upgrading definitions.”

Although Board member Peter Smith (MAPFRE) acknowledged that the process has been quite lengthy, he insisted, “It's a necessary exercise for the new Board to go through and do a review of them.”

Any hope that this third review would require less detailed scrutiny flew out the window when Smith clearly stated his intention to continue perpetuating these delays: “Rome wasn't built in a day. Unfortunately, we can't go through the entire thing today. There are areas that we probably need to address and clean up in order to move this forward.”

Whether the amendments to 212 CMR 2.0 will ever actually move forward remains to be seen. Maybe third time’s a charm…but probably not based on previous experience with the ADALB.

The ADALB is scheduled to reconvene on March 12. Don’t miss detailed coverage of the meeting, only available in the February issue of Damage Report, AASP/MA’s members-only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the January 23 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB0124.

by Alana Quartuccio

Mark Your Calendars: AASP/MA Chapter Meetings Return this Spring

The winter months are almost behind us, so it’s time to mark your calendars for a spring full of Alliance-related events designed to help your auto body shop “Get More in ‘24.”

Piggybacking on the successful return of chapter meetings in the spring of 2023, which were surrounded by a series of “Breaking Free in ‘23” general membership meetings, this round of chapter meetings strives to bring members of the Alliance together to be exactly that – an alliance of brothers and sisters who all want proper reimbursement for fixing cars correctly –and also to provide them with the necessary resources to help them succeed now and in the future.

The information that will be shared at these meetings will be crucial in improving the industry for all across the Commonwealth. Content will focus on drafting proper complaints to the Auto Damage Appraisers Licensing Board (ADALB). As most are likely aware, the ongoing mission of the Alliance is to bring reform to the ADALB by way of proposed legislation which would move the Board, whose purpose is to police appraiser licenses, away from the overwhelming influence of the Division of Insurance over to the Division of Occupational Licensure. This move intends to eliminate the control the insurance industry has over body shop complaints that at times is blatantly biased toward the insurance industry side of the table. While this legislation continues to gain momentum and is pending review at the State House, auto body shop business owners are encouraged to submit complaints about unfair appraiser practices. In fact,

ADALB Board member Peter Smith (MAPFRE) suggested at the December 2023 meeting that shops learn to properly submit complaints because “we’re supposed to have everything brought to us on a silver platter. It’s supposed to be plain and clear as the day is long.”

In addition, AASP/MA attorney Sean Preston of Coverall Law will be on hand at these events to dive deeper into the “forever forms” he has been building for auto body shops based on the informational session he presented during the third installment of the “Breaking Free in ‘23” series last October. In addition, a detailed review of the SCRS paint study will be performed and how to best utilize the findings for proper reimbursement by the insurance appraiser or the vehicle owner. Last but certainly not least, member shops will also get the latest updates regarding the proposed legislation HB 262, moving the ADALB to the Division of Occupational Licensure and HB 1035 the minimum labor reimbursement bill. As always, it’s also a great opportunity to interact with your fellow shop owners, talk shop and enjoy some refreshments surrounded by peers.

AASP/MA plans to once again host a raffle for a cash prize at each chapter meeting – a fun incentive introduced during the 2023 chapter meeting series.

Locations and other specific details will be announced in the coming weeks.

The dates for the chapter meetings are as follows:

• Zone 2 (Central Mass/Worcester county):

Wednesday, April 3

• Zone 4 (Boston North):

Wednesday, April 24

• Zone 1 (Boston South):

Wednesday, May 1

• Zone 3 (Western Mass):

Wednesday, May 22

“I am very excited to start up our chapter/zone meetings again,” Papageorg expressed. “These upcoming events are a great opportunity for shops to be introduced to attorney Sean Preston and his ‘forever forms’ on a chapter by chapter basis. Our discussion about the ADALB complaint process, the SCRS blend study and the positive effects on your P & M bottom line should not be missed.”

Papageorg also hopes members will join in for a short statewide Zoom meeting planned for the third week of March. “This will be a preview of what attendees can expect to walk away with in order to continue our momentum of ‘Breaking Free in ‘23’ so shops can achieve ‘Getting More in ‘24.’”

Collision repair professionals will also want to secure Saturday, June 22 on their calendar for the next general membership meeting, scheduled to be held at Assabet Valley Regional Technical High School in Marlborough. The event will feature David Luehr of Elite Body Shop Solutions and his “Know Your Numbers” and other key educational modules to help you “Get More in ‘24” workshop.

Members are encouraged to watch their inbox and check aaspma.org/schedule regularly to keep up with events.

• Local/Regional Networking Events

• Annual Education Conference

• Educational Webinars

•

• Scholarship Program

• School Outreach Program

• Most Influential Women (MIW) Award

Still Informed, Still Passionate, Still Into Cars: Retired ADALB Attorney

Victor Fanikos Reflects

New England Automotive Report has been featuring many passionate members of the automotive community who have made significant contributions to the industry over the years. This month, we reached out to retired ADALB attorney, Victor Fanikos, who also spent many years working with the Division of Insurance (DOI), to talk about his years serving the industry and what he is doing these days to help body shops while he enjoys retirement.

New England Automotive Report: You’ve used your legal background to help benefit the automotive/auto body industry; how did you get involved in this area?

Victor Fanikos: Growing up, I was always into cars. My father had a small grocery importing store where he’d import oil from Greece, and he’d go around pedaling it, so we always had a car. Cars in those days always needed fixing, so I’d spend a lot of time with my father at the garage. I was always fascinated by how mechanics could take cars apart and put them back together. After I graduated from Revere High School, I went to Harvard before it was ‘woke’ or anything like it is today (laughs). While interviewing for jobs after graduation, one person I interviewed with suggested that I would make a good lawyer. That planted a seed in my head, and I decided to apply to Boston University. Shortly before graduation, I went to work for Governor Volpe’s campaign. When he was elected, he put me on his staff. My title was Assistant State Service Secretary, which basically meant I served on his transition team. I stayed on with that job, and I enjoyed it.

When Richard Nixon became President, Volpe was appointed Federal Highway Commissioner. I did not want to go to Washington DC since I had just gotten married. A legal counsel job opened up at the Massachusetts Division of Insurance, which was a great fit for me. I was interested in the insurance business, and I began to get involved somewhat with the auto body industry at the time. After a couple of years, I left to pursue an opportunity working for an insurance agency, but after three years in that venture, I decided I didn’t like it and went back to the DOI when an opening came about. I was there for about a year when I was asked to work on putting together an easy-to-read auto insurance

policy. We worked on that for 18 months, and that’s where I got some recognition as a co-author. The auto policy was designed to be read at the ninth grade level. This came out in 1977. That was when I really got into the auto body end of things as there were all types of questions involved about policy and claims. Most of them were about personal injury, but it increasingly became more about auto body as there were questions about rental property damage claims.

NEAR: How did you get involved with the Auto Damage Appraisers Licensing Board (ADALB)?

VF: Two or three years later, I was still working with the DOI as legal counsel when I was asked to become legal counsel to the ADALB. There was kind of a shake up of the Board at the time I got on it. Gil Cox was named Chairman, and we had two or three other appointees. So, the new Board was kind of directed by the insurance commissioner at the time to try to straighten out some of the auto body industry problems that had come about. The first big one was the use of like, kind and quality (LKQ) parts which was becoming more and more of a problem. The quality wasn’t good, and the prices were sometimes deliberately low so they could gain market share and business. So, we investigated and the first big splash we made was with the ruling that basically stated that LKQ parts could be used after the first three years. It was a huge compromise to get the auto body industry on as they wanted to ban LKQ parts altogether, but we got them to agree to this: If the vehicle was damaged during its first three years, new OEM parts would be used, but after three years, LKQ parts could be used if they were available and were the right fit. The auto body shops did have leeway to send the parts back if they did not fit right. Believe me, in those days some of those parts didn’t fit right at all. After that, the commissioner wanted the Board to revise the regulations. Computers were only starting to come into play back then, so we had to type things up, circulate them and retype them. We only got to meet about once a month, but we finally got it done and put out two revisions, and they are basically still in effect today. By doing this, I got more interested in the auto body side of things.

The ADALB’s job is to license auto damage appraisers. For

five years, I was the one who graded the written test. The physical part of the test would take place at a body shop or sometimes at the parking lot at our building. Appraisers would review damaged vehicles and write up the estimates. We’d then review the results and see if they passed or not. I got to know the body shops very closely during that time and see their problems first hand. It’s an interesting field, one that takes a lot more competence and intelligence than people give credit for. The new cars today require a degree of knowledge one did not need in the past. Back when cars cost $2,000, most people assumed they would be getting a new one after about five years, but cars have become more and more expensive, and people expect them to look better and perform better. The demand for quality work has increased, and the shops that provide that type of repair are the ones that survived. There isn’t that much business anymore. When cars get into accidents these days, sometimes they are told that they can’t be fixed.

NEAR: How long did you work with the ADALB? Any memorable things from those years you’d like to reflect on?

VF: I was with the DOI for 34 years in total, and I was with the ADALB for about 15 years until I retired. The ADALB was a small part of my day to day. We would give them the appraisal exam about five or six times a year, and we met about once a month. I enjoyed working with the guys; sometimes, they’d come to me with questions and other times criticisms. But that was the job.

NEAR: What were some of the biggest challenges or accomplishments you encountered during your time at the ADALB?

VF: Well, certainly the LKQ was a really big issue. The right to disassemble a car before writing an estimate was another big issue that had to be resolved. One of the necessities we required from body shops was they had to have an appraisal prepared for the insurance company to look at. But one of the issues was that the company would not pay attention to the data; it’d be a verbal estimate. So, we imposed a requirement that the companies had to negotiate with the body shop. But before we did that, the body shop had to prepare an estimate; however, there were questions that came about from body shops regarding hidden damage if insurance companies didn’t want the shop to break down the vehicle to prepare the appraisal.

So we put in the regulation that any appraiser, not just the insurance appraiser, has the right to break down the body to prepare an appraisal. There were requirements involved, but they had the right to break it down, and this saved a lot of aggravation. Delays cost money. I recognized it. The body shops recognized it. The insurance industry came to recognize it. Working on that revision was probably the biggest success we had. We argued and argued, and we talked about these various issues until we got a compromise, until we got results and then we’d move on to the next issue.

by Alana Quartuccio

NEAR: What have you been up to since your time with the ADALB?

VF: I retired at 64 and a half. I had endured the Big Dig and all that traffic and everything (laughs). Our kids were grown, and I told my wife, ‘I don’t want to do this anymore,’ so I got out. I enjoyed it. I did a lot more consulting than I do now. Because I wrote the auto policy, lawyers would call me, and I would serve as a qualified expert witness. Judges would allow me to testify as to what the intent of the policy was, not necessarily what the result should be. I do less of that now as those cases have become fewer and fewer, but I still get involved with auto body cases.

NEAR: Can you discuss some of the recent court cases you have been asked to give expert testimony?

VF: I was involved with one case out in Fall River and another one just recently in Worcester on the right to disassemble. Insurance companies still try to insist that they don’t have to disassemble a car, but the regulation clearly states that any appraiser, with the approval of the vehicle owner, has the right to do so in order to write an appraisal. I hear they are trying to change that regulation. I think they’d be making a mistake because it’s worked pretty well with the exception of one or two insurance companies. We tried to safeguard everybody’s interests. It should be possible for any appraiser to determine the standard damage without any further ado or delay. Another issue had to do with markups on parts. I wrote a letter that body shops have the absolute right to mark up parts they purchased that are used in the repair. To me, it’s kind of silly to expect the shops to handle this without some type of markup. One area that was particularly contentious involved markups on towing charges. For example, a shop would pay the tow company to obtain the vehicle because usually the tow company will not release a car until they are paid. So, the insurance company would look at this and say the body shop didn’t do anything to get the car, but the fact of the matter is that the body shop had to put out the money to release that car. Sometimes, it would take a long time to get that claim settled and a check for the repair. Companies were losing money because they had to put out cash. One shop had three or four thousand dollars outstanding at any given time. So, we agreed that shops should be able to put a markup on that. These are the issues that the poor little body shop guys face. I can see the insurance company's point of view. They feel that the shop isn’t doing more than writing a check, but writing a check costs them money in addition to taking and making the phone calls to arrange for the tow and processing the vehicle upon arrival to their facility, and they should get some compensation for that. In fact, the same holds true for any sublet paid out by the shop.

(A copy of Fanikos’ letter can be found under “Markup on Sublet Repairs” in the Members Only section of aaspma.org.)

NEAR: Do you think the industry has changed since you have been less active?

continued on pg. 18

[WHERE] ARE THEY NOW?

continued from pg. 17

VF: Technology has made the industry a lot better. If anyone has benefited from technology, the Insurance industry has. Appraisers were not in communication with the home office as quickly back then. Their work assignments used to come in over the phone every day at four o’clock, when they’d learn what their assignments were for the next day. Technology changed all that. Now they can transmit information faster. They have a photo and location of the vehicle, access to manuals and pricing right in their hand. It’s changed a lot of things from the insurance company’s point of view. Possibly more important is the fact that the new cars today can’t be easily fixed anymore and the amount of totals has doubled.

NEAR: Observing from the sidelines these days, what are the biggest issues involving the ADALB today?

VF: I’ve only attended a couple of meetings, but I was impressed that there was discussion, and no one was getting cut off. That’s what we tried to do back then, and it seems to have carried on. I think the biggest problem facing the industry is electronics. Every body shop I talk to is feeling over these electronics (ADAS). One shop owner told me he feels like he should’ve become an electrician with all the wire harnessing and sensors that require training and a degree of sophistication by the technician. I don’t even know if the auto body schools are set up to train their graduates as capably as they should be. We went through this to some degree when I was on the Board when cars shifted from frames to unibody construction.

Body shops helped change the vocational school curriculum and get them the equipment needed to train in unibody construction. In terms of electronics, company manuals have to be available to technicians. There was all that controversy surrounding the Right to Repair law, but it’s a necessary thing. Without access to the directions, how can a body shop expect to fix these cars? The dealerships can’t handle volume. So, there will always be a need for the independent body shop, in my opinion. But they must be qualified to do the work. So, I think the Board will have to address the educational path so body shops can survive. Also, I believe the auto body industry needs to understand that they have to educate the Board, the insurance commissioner and the governor about their issues. When I worked with the Board, I knew a little about cars, but the commissioners and the governors I dealt with didn’t know anything about it. I think it’s incumbent that AASP/MA Executive Director Lucky Papageorg and the association members continue to do their best to try to educate the Board, insurance commissioner and governor about the problems the auto body industry is facing. Body shop owners should also bring issues to the attention of the ADALB.

NEAR: Any interesting hobbies you’d like to share?

VF: Educating my kids and my grandchildren.They always call me if they have a legal question. They are good kids; I enjoy them. Retirement is good. I try to keep busy. I had a Jaguar for a while that I used to fiddle with. I hung around a body shop, and there was a guy there who wanted to sell the car. So, I bought it and fooled around with it for about three years. I proved to myself that I am not the greatest mechanic. Even though I can read the service manual, I still had trouble doing the work. But it was fun. I kept it running, but I don’t pretend to be a mechanic.

NEAR: What did you gain from working alongside the auto body and insurance industries?

VF: I have always appreciated the hard work that so many put in. It’s a skill and a talent, and when they finish a job, they look back and say ‘Gee, I did a great job on that!’ Some of them get more satisfaction from that than from the money they make. For those with shops in smaller towns, they live by reputation. They have to have this pride that sort of drives them, and that always impressed me because it’s pressure day after day. As a lawyer, you can lose a case and say, ‘Well, the facts were against me or the jury didn’t like me, or whatever.’ But the body shop is responsible for itself and their customers. That always stuck with me. The relationship they have in their small towns and the pressure that is on to make sure they do a good job, and they do do a good job.

by Alana Quartuccio

Running a successful automotive business is one thing, but becoming a better business owner can require an entirely different process and set of skills altogether.

The average shop owner may not easily possess the financial mindset to effectively manage their finances to the best of their ability. That goes for the sake of their business, their personal money matters and even those of their employees. This realization is what led former technician, appraiser and business development consultant, Rachel James, to launch Torque Financial Group. Through this venture, she helps the collision repair community better manage their finances.

There are many advantages to working with James. Not only is she a certified financial advisor, but she truly knows how to get her hands dirty, having lived and experienced exactly what her clients contend with on a daily basis.

Her automotive career started in vocational school and gradually evolved as she studied at technical college, which led her to work as a technician for a Nissan dealership and later a Chevy-Hyundai dealership. She moved into management at that point, obtained her appraiser license and transitioned into the auto body world. James then carried her experience over to PPG Automotive where she grew into a business consulting role.

“Somewhere around 2008 into 2010 – as I began to move away from the shop floor and take on more of a consultant role – I started hearing a lot of discussion about handling finances. People would share that they were unsure of how to benchmark their business,” she shared.

PPG offered her the opportunity to take college courses, so she took night classes in business finance to earn her bachelor’s degree.

James had recognized that “shops don’t necessarily need as much help with the paint as they do with understanding how to run their business. The role I had at PPG really turned into a consultant role.

I was in business development, and I did a lot of work helping shops understand how to be a better business owner and how to understand their financials. Questions would arise as they would make some profit, but they wouldn’t know what to do with it or how to mitigate their taxes. That’s when it dawned on me that there is a niche market that had never been tapped. I looked up financial advisors that specialized in collision and could not find any.”

Rachel James, Torque Financial Financial Advisor

She spent about six years working on getting her licenses and designations in place. “I think I will forever be learning. I don’t think that part ever ends,” she says of the constant time and training she puts into her work. “I opened the practice in 2019 and have never looked back!”

Her focus with Torque Financial is to “help body shop owners and their employees get a better grasp on business finances and be smarter with their money.”

Her door is open to listen to anyone who may have questions. She offers complimentary assessments. Those who

are curious can go through an initial intake to gain an understanding of their business goals. They will also identify the top five to 10 things that can be done to give them an idea of how things would work.

“I get a sense that people are intimidated by finance,” James observed. “I will always take a phone call. If you have a question, we’d rather you call so we can help you, rather than you wait a year and make a mess of your finances.”

James’ love for working with cars has never faltered. She’s currently working with her son to restore a car. “That part of me will never go away. I’m still involved with cars. I still go to conferences to learn about the industry. I really like this industry a lot. What is unique about our firm is that I have sat in the roles they sit in, and I understand the struggles they go through. I try to translate finance into terms they can understand. The finance industry can be complicated, and that makes people want to avoid it. It doesn’t have to be overcomplicated. Just like we have standard operating procedures (SOP) for fixing cars, we build an SOP for these businesses to follow toward financial success.”

James strongly believes in supporting the industry, which she does being an active Bronze sponsor of AASP/MA through their Vendor Affinity Program. She also took part in the third installment of the Alliance’s “Breaking Free in ‘23” series last fall which left collision repairers in the audience with much to think about when it comes to keeping their finances in check.

“It’s important to be part of this community,” she says of Torque Financial Group’s support of AASP/MA. “We all have unique strengths we can offer. Each shop is unique in its own way. Every vendor is unique in their own way. We all bring something to the table. We can all add value by lifting each other up.”

VISIT BOOTH #521 AT AASP/NJ’S NORTHEAST SHOW!

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by Chasidy Rae Sisk

Prepare for the Future: New Englanders Head to New Jersey for NORTHEAST 2024

ADAS. EVs. AI. Augmented reality. Autonomous vehicles. And the list goes on and on as the technical tsunami continues crashing over the automotive world with wave after wave making it increasingly difficult for shops to stay afloat. The future is now, but are you prepared for what’s coming…or even what’s already here?! Say goodbye to the industry of yesterday and embrace tomorrow’s technology during the most anticipated weekend in the automotive and collision world.

From a forward-focused educational agenda to a trade show floor packed with 100-plus vendors showcasing the industry’s latest and greatest equipment, the NORTHEAST® 2024 Automotive Services Show – scheduled for March 15-17 at the Meadowlands Exposition Center (MEC) in Secaucus, NJ – promises to deliver everything automotive and collision repair professionals need to propel their careers and businesses into the future…plus a few fun extras!

“Having attended NORTHEAST for dozens of years, I have found this event to be a very worthwhile investment of travel time,” shares AASP/MA Executive Director Lucky Papageorg. “In terms of expanse and magnitude, the show is the biggest event in our region, but the time you get to spend with vendors in a more intimate environment is an even bigger benefit! The ever-improving offering of educational seminars and speakers are right on par with those offered at SEMA, and I have always found them to be extremely valuable and informative. And its proximity to the New England area makes it that much easier and more worthwhile to attend.”

Repair professionals intent on remaining on the cutting edge will want to sign up early to take advantage of the plethora of vital training opportunities on this year’s educational slate. “Get ready for the ultimate auto experience at NORTHEAST 2024!” promises Ken Miller, president of AASP/NJ, which puts on this event every year. “We are kicking the weekend off with an exclusive early training event on Thursday, March 14, in addition to starting Friday’s training early with two special Collision Advice workshops, so be sure to join us for an exciting weekend filled with expanded educational events featuring industry legends like Dave Luehr, Mike Anderson, the Collision Advice team, John

Shoemaker and more!”

Attendees can purchase single classes for $30 each or get a huge discount on a full access NORTHEAST Educational Pass for just $249! See page 25 for the full educational agenda.

The 2024 educational slate ensures that NORTHEAST will continue to be lauded as THE premiere automotive trade show on the east coast, but attendees won’t want to miss perusing the trade show floor for the industry’s best innovations in tools and equipment…and you never know who you might see or what you might win!

For starters, fans of MotorTrend TV’s Bitchin’ Rides won’t want to miss the chance to meet Dave Kindig at Gold Sponsor AkzoNobel’s booth on Friday and Saturday!

“This is my first time attending NORTHEAST, so I am excited to see what the show has to offer,” Kindig says. “I am also excited to be joining AkzoNobel this year, celebrating our continued partnership together, as I am now the brand ambassador for their flagship premium brand Sikkens.”

Many of the 100-plus exhibitors showcasing the field’s most relevant and effective tools and equipment will also be familiar faces, though their offerings are always the most up-to-date wares on the market, but NORTHEAST 2024 will also feature a number of new companies.

And NORTHEAST offers even more than superior education and exhibitions! The experience that attendees have come to expect can be seen throughout the weekend with multiple opportunities to indulge in the face-toface networking that is only possible at an event of this size and caliber.

The association will recognize the industry’s future with the Fourth Annual Young Technician Award presentation where AASP/NJ will recognize two young repairers/painters for their hard work and dedication to the craft. And the Recycled Rides presentation by the National Auto Body Council (NABC) is sure to warm even the coldest hearts.

For those who prefer competition over comradery, NORTHEAST has something for you too! Taking place all weekend long, the Second Annual Bodywork Bowl Collision Repair Skills Competition gives body technicians,

estimators and painters a chance to prove they’re the best of the best as they show off their skills and compete to win amazing prizes.

Last year’s inaugural Bodywork Bowl was a “smashing” success that drew more than 60 auto body professionals to the NORTHEAST show floor to test their skills in estimating, welding and painting. Winning offered much more than merely bragging rights with top place winners taking home cash and/or prizes in each category. This year, even more is on deck, and each first place winner will take home $500 in cash plus other prizes!

There will also be plenty of chances for attendees to win a number of prizes. Simply pre-registering for NORTHEAST 2024 provides a chance for attendees to win $500 in NORTHEAST Dollars to spend on the show floor (10 winners will be chosen at random over the course of the weekend), and those who obtain a VIP ticket from their preferred vendor prior to the show can participate in a drawing to win a $500 gift card!

AASP/NJ’s flagship event typically draws over 6,000 industry professionals every March as shop owners, technicians, painters, estimators, suppliers and others flock to the 65,000 square foot show floor to check out the latest tools, products, equipment and services from over 100 exhibitors. Attendance at the 47th iteration of NORTHEAST is expected to set new records as repairers seek to learn more about the future technology pervading their businesses from the industry’s most sought-after speakers and embrace the chance to shop for the tools and equipment needed to repair the complex technology on the modern vehicles being pulled into their stalls.

“With exciting activities, giveaways, promotions, top-notch education, all of the latest and greatest equipment on display and a special celebrity appearance by Dave Kindig from Kindig-It Design, we’re expecting record attendance,” Miller says. “Don't miss out on the automotive event of the year!”

Registration for the tradeshow and the educational courses are now open at aaspnjnortheast.com.

NORTHEAST 2024 is proudly presented by AASP/NJ with generous support from the following sponsors:

2024 Platinum Sponsor: BASF

2024 Lanyard Sponsor Innovative Solutions & Technology

2024 Education Sponsor: AirPro Diagnostics

2024 Gold Show Sponsors: AkzoNobel, Reliable Automotive Equipment, Matthew’s Auto Supplies

2024 Silver Show Sponsor: Alloy Wheel Repair Specialists

THANK YOU FOR YOUR SUPPORT!

THURSDAY, MARCH 14 (PRE-SHOW)

9am-3pm

Exclusive Early Training Event Know Your Numbers Financial Workshop

Dave Luehr (Elite Body Shop Academy) Register at aaspnjnortheast.com/events.

*This is a special pre-show workshop presented by Dave Luehr’s Elite Body Shop Academy and is priced separately from the NORTHEAST 2024 educational slate.

FRIDAY, MARCH 15 SHOW HOURS 5pm - 10pm

8am

100% Disassembly

Mike Anderson (Collision Advice)

1pm Game Changer CSR

Sheryl Driggers (Collision Advice)

5:30pm

Adopt, Adapt, Advance: ADAS Dos & Don'ts Chuck Olsen (AirPro Diagnostics)

5:30pm

The Future of Certification: Finding the Best Fit for Your Shop Dave Gruskos (Reliable Automotive Equipment)

7:30pm

Put the Brakes on Passing Defects in the Repair Process Jeramy Holloway & Alex Stapleton (Spanesi Americas Inc.)

7:30pm

Being Elite in a Consolidated Market John Shoemaker (BASF)

SATURDAY, MARCH 16 SHOW HOURS 10am - 5pm

12pm

Thriving in Chaos

8am

I-CAR: The Latest in Electric Vehicle Technology and Repair Jeff Poole (I-CAR)

10am

Getting More ADAS in Your Shop: What Does It Take? (Panel Discussion)

Panelists: Ken Miller (821 Collision), Josh McFarlin (AirPro Diagnostics), Nick Barbera (Union Collision), Paul Sgro (Lee's Garage);

Moderated by Joel Gausten

Dave Luehr (Elite Body Shop Solutions)

2pm

I-CAR: Ford Collision Repair Workshop

Gerry Bonanni (Ford Paint and Technology Center)

4pm

Survivor: Exploring Trends that Will Shape the Next Decade & Beyond (Panel Discussion)

Panelists: Dave Gruskos (Reliable Automotive Equipment), Mike Anderson (Collision Advice), Ken Miller (821 Collision), Lucky Papageorg (AASP/MA), Frank Terlep (Opus IVS); Moderated by Joel Gausten

SUNDAY, MARCH 17 SHOW HOURS 10am - 3pm

9am Success Today, Success Tomorrow Mike Anderson (Collision Advice)

11am

Picking the Right Lane to Pass Along Your Automotive Repair Business

Jason E. Marx, Esq. (Mandelbaum Barrett PC)

*All

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One

Act II: WAITING for Progressive to Act in Good Faith

“ESTRAGON: I can't go on like this.

VLADIMIR: That's what you think.”

Waiting for Godot by Samuel Beckett

Waiting for insurers to do the right thing by their policyholders often feels like an exercise in futility, much like sitting around and waiting for someone who never shows up. Waiting for Godot is often described as a play in which nothing happens, and some shop owners can attest to the fact that attempts to negotiate with carriers may feel just as endlessly repetitive with no resolution.

Last year, Texas Automotive featured

“A Comedy of Under-Indemnification: Starring Progressive” (available online at grecopublishing.com/txa1123coverstory), which told the story of a shop owner fighting on behalf of consumers whose insurer objected to compensating for necessary repair operations. But while this tragicomedy may have debuted in Texas, it is not isolated to any specific region…and it does not only impact shops.

Act II: Enter Steve Piispanen (Keene Auto Body; Keene, NH), a third-generation collision repair shop owner who files a claim with Progressive Insurance on his rental

vehicle. The villain in our story again refuses to compensate for required procedures in what appears to be an attempt to control repair quality and dictate labor costs.

“I just want the money rightfully owed to repair the damage to my vehicle as per my policy,” Piispanen explained. “I’m stepping into what my customers deal with on a daily basis, and the insurance companies do not like dealing with an educated consumer.”

Piispanen initially filed his claim in November 2023, but he was appalled to find that Progressive’s supplement did not include a number of necessary repair costs, such as bleeding the coolant system, replacing the radiator, wheel alignment and disabling, removing and inspecting the SRS system. He also noted a decrease of over $150 in paint and buff materials compared to his repair plan. In an email to the insurer in which he indicated that these items have been omitted from other supplements as well, Piispanen shared his belief that “the claims may have been intentionally underestimated. This has become a pattern with this insurer.

“Once is an error; repeatedly doing the same appears to be an intentional act to underestimate the claim. Please do not use the excuse that Progressive will review on a claim-by-claim basis. These necessary repair costs are necessary for all body repairs, ” he wrote in another exchange, asking, “Why is Progressive not including these necessary repair costs on their appraisals and not making payable on claims for buffing labor/materials and block/prime labor and materials when the Progressive estimate manual and paint manufacturers state otherwise?”

Progressive’s NNE Field Manager Tim Bennet offered assurances “that it is not Progressive’s business practice to not include necessary repair costs in our appraisals.”

Since then, Piispanen has engaged in multiple conversations, meetings and email interactions with various Progressive employees, escalating the matter in an attempt to reach a resolution – or at least get some of his questions answered.

“Progressive wants to control the quality of the repair by telling me which processes will be paid and selecting the parts to use, as they are trying to dictate labor costs based on the ‘prevailing price,’ though no one will provide their prevailing price survey,” Piispanen told New England Automotive Report. “I’ve asked them numerous times to tell me which payment of loss option they took, but they cannot even answer that!”

Progressive representatives have

indicated that “they’ll pay money to repair the vehicle,” according to Piispanen. But that is not a payment of loss option. Insurance policies give carriers three options: replace the vehicle, pay for the loss in money or elect to repair.

“If they elect to repair the vehicle, they do have the right to dictate quality and price,” he acknowledged. “But if they take the keys and authorize the parts and procedures as they want to specify, they also assume the risk and liability; they’re never going to do that.”

Despite Piispanen’s repeated requests for his carrier to “act in good faith” – and after five insurer estimates/supplements –Progressive continually failed to include buff materials, although the insurer’s appraiser wrote for the denib/finesse/polish operation at 0.5 hour. “Your company includes the finish, sand and buff procedure. Common sense tells the average person and the trained tech that in order to perform this finish, sand and buff procedure will require additional material costs above the paint material costs that Progressive already had offered in their appraisal,” Piispanen insisted via email.

When Progressive’s representative admitted that there could be additional material costs associated with overall refinish and offered to perform a refinish calculation if supporting documentation was provided from the shop, Piispanen pointed out, “A repair shop has nothing to prove to Progressive. Progressive does not owe the repair shop; the repair shop does not have a claim against Progressive. I, as the vehicle owner, have a claim against Progressive, and Progressive owes me.

by Chasidy Rae Sisk

“Why do I have to get a repair shop involved to get the money that Progressive rightfully owes me on the claim?” he queried. “Show me the policy provision that allows Progressive to deny me this money on my claim. I’m the consumer, I’m a Progressive claimant, and I have the right to this requested info.”

Piispanen’s questions to Progressive continued to go unanswered more than four months after the claim was filed, so NEAR gave it a shot. With the claimant's explicit permission, we asked Bennet several questions:

• Do you believe that the claim in question was negotiated in good faith?

• Why does Progressive persist in refusing to compensate policyholders for some procedures and parts that are required in the repair process?

• Does Progressive pay for buffing and materials, blocking body repairs/primer application and body repair materials? Why or why not?

• Your emails indicate that Progressive represents the “fair and reasonable price in the area charged by repair shops or facilities.” How do you determine what is fair and reasonable? Can you provide a copy of your survey?

• On Mr. Piispanen’s claim, how did Progressive elect to settle the claim (repair, replace or money)? If Progressive elected to settle in money (as most insurers do to avoid the liability of the repairs), why is Progressive also trying to dictate the repair?

• Do you have any repair experience? If so, why do you feel that

continued on pg. 42

Reliability, Excellence & Industry-Leading Support: Reliable Automotive Equipment

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Today’s technicians face unprecedented challenges, including increasingly complex repairs and safety hazards. With the rapid increase in new materials and vehicle construction, there is a growing need for quality tools, top-notch training, and ongoing support. RAE provides professional guidance to help navigate these challenges and maintain a competitive edge within the industry, all while adhering to OEM standards for vehicle repair.

One of RAE’s standout tools is the Xpress800 - a versatile “All-In-One” riveting gun system designed to meet a wide range of riveting needs, including Self-Piercing,

Flow Form, Blind Rivets, Blind Rivet Nuts, and more. Its quick-change adapter setup eliminates downtime and ensures efficiency in operations.

The Xpress800 is easy to use and update, while adhering to OEM-approved methods and procedures. It is the preferred rivet gun for certifications. This versatile tool ensures efficiency and effectiveness in various riveting tasks, further solidifying its status as an indispensable asset for automotive professionals.

In an industry marked by constant evolution and heightened challenges, Reliable Automotive Equipment stands firm in its dedication to providing unparalleled support and cutting-edge solutions. With an unyielding commitment to quality, innovation, and customer satisfaction, RAE remains the trusted partner for automotive professionals worldwide. From superior customer service to industry-leading tools like the Xpress800, RAE continues to pave

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MASSACHUSETTS

Co-celebrating decades of creating chemistry between two industry leaders

Here’s to 241 years of combined service excellence

This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.

Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.

Thank you for your many years of loyalty.

The Massachusetts Appraisal Clause:

A Wholly Unworkable Solution

Introduction

Navigating through the intricacies of insurance claims in Massachusetts reveals a perplexing maze, especially when one encounters the Appraisal Clause as outlined in the state's insurance law. This provision, intended to offer a streamlined process for resolving disputes over property damage claims, instead can serve as a battleground where insurers' interests seemingly overshadow those of vehicle owners and auto body shops. This article delves into the Appraisal Clause's complexities, uncovering the subtle ways insurers may leverage policy provisions to their advantage, leaving claimants navigating a path fraught with procedural uncertainties and legal ambiguities.

Legal Framework and Process

In Massachusetts, if there's a disagreement over how much a car repair should cost after an accident, both the car owner and the insurance company have a right to start a special process to sort it

out, according to state law (M.G.L. c.175, s.191A). This process involves each side choosing an appraiser to estimate the damage. If these experts can't agree, they'll pick a third “disinterested” person, an umpire, to make the final decision. This is meant to ensure fairness, but getting there might be complicated.

Choosing an Umpire

The two experts perform the appraisal, and each separately state two things: the amount of loss and the actual cash value (ACV) of the vehicle prior to loss. If these experts fail to agree, they need to rely on a third person which they’ve already chosen, called an "umpire," to make the final decision. There's a catch, though; if they can't choose an umpire within 15 days, one of the parties then needs to petition a court to step in and choose an umpire for them. This step can add more time and possible complexity to resolving the claim, showing how even a system designed for fairness can get tricky.

Competence and Impartiality of Appraisers and Umpire

For the appraisal process to be fair, it's crucial that the experts and the umpire chosen are both qualified and unbiased. This means they should have the right skills to accurately assess car repair costs and favor neither the car owner nor the insurance company; however, making sure that these experts are truly impartial and competent can be challenging. There's no straightforward method to prove they meet these standards, which can make the process feel less reliable for everyone involved.

Unresolved Issues and Operational Challenges

The process starts with submitting a "Proof of Loss" to claim damages, but the specifics can confuse many. There's also uncertainty about whether the umpire needs to be a licensed motor vehicle damage appraiser, which can affect the final decision. Choosing between the initial appraisals or finding a middle ground adds another layer of complexity. Lastly, figuring out the car's ACV versus the claimed loss amount can lead to significant disagreements, especially in recent times, highlighting the system's operational challenges and the need for clearer guidelines.

Case Law and Precedents

In Massachusetts, when it comes to disagreements over car insurance claims, there's a lack of specific court cases to guide us. This means that both car owners and insurance companies lack clear examples to follow. Instead, they often agree on their own how to solve these disputes. This situation can make things a bit uncertain, continued on pg. 36

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continued from pg. 33

showing how important it is to understand the rules or possibly get advice from a legal expert when facing these issues.

Practical Implications for Claimants

Car owners and auto body shops often face hurdles with insurance claims, especially when insurers use tactics to slow down or complicate the appraisal process. This can make it tough for shops to get fair compensation for repairs and for owners to have their cars fixed in a timely manner. Understanding the rules, and sometimes getting legal advice, can help navigate these challenges.

Seeking Legal Remedy

Once the appraisal process begins in Massachusetts, it must continue unless both the car owner and the insurance company mutually agree to stop it. This means both parties need to be on the same page to abandon the process, highlighting the importance of careful consideration before starting it.

Conclusion

The Appraisal Clause in Massachusetts presents significant challenges for vehicle owners and auto body shops, marked by a maze of procedural uncertainties and insurer tactics. The lack of specific state precedents further complicates the landscape, underscoring the urgent need for clearer guidelines and stronger

protections for claimants. This situation calls for legislative or judicial intervention to refine the process, making it more transparent and equitable for all parties involved.

Recommendations

Vehicle owners and auto body shops should approach appraisal disputes with caution, understanding the commitment once the process begins. It's crucial to document all communications and assessments thoroughly. Seeking legal counsel early can provide strategic advantages, especially in navigating the complex terrain of insurance claims and ensuring fair treatment throughout the appraisal process.

Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or spreston@coveralllaw.com

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EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 6

overt example of this manipulation. The Board had agreed to the proposed P & M language and was to vote to ratify their decision at their next meeting. Just as the next meeting was about to be called to order, the insurance representatives were replaced in an attempt to thwart the P & M reimbursement language. Fortunately, the sitting Chairman, Gilbert Cox, held firm and the language was adopted and still remains enforced in the current version of 212 CMR 2.04 (e) Determination of Damage and Cost of Repairs

Fast forward to December 5, 2018 when the issue of part availability and vendor “black balling” shops came to a head. The Board, led by comments made by Joe Coyne advocating for the consumer, decided that they would issue an advisory ruling to address the issue. All five board members agreed that if a complaint came in under the conditions described, they would vote in favor of the consumer/shop. Low and behold, this was Coyne’s last meeting. He was replaced by Samantha Tracy who, at her first meeting on January 23, 2019, showed her true colors by arguing strongly that the Board should not issue an advisory ruling to fix a situation brought on by a “jerk” shop. Then, by the next meeting of the Board held on April 30, 2019, the two other members who favored the consumer/collision repairer were replaced. Ultimately, these personnel changes kept the “consumer beneficial advisory ruling” from being issued, failing to address the “black balling” of shops by vendors. This is a prime example of both Rules No. 39 and No. 40 in action.

Additionally, the wholesale removal of sympathetic ADALB members “forced” the review of the newly proposed changes to 212 CMR 2.0 (THE APPRAISAL AND REPAIR OF DAMAGED MOTOR VEHICLES)…Rule No. 40 at play. Through the manipulation of Robert’s Rules of Order, the three new Board members succeeded in undoing all the beneficial changes that the previous Board had spent hours and hours of discussion and compromise to achieve.

We are experiencing the exact same manipulation now. Although the gutted language was “agreed” upon by Johnson, Starbard, Tracy, Smith and Donovan, and it was sent up for approval, it would seem that because the court case previously referred to regarding “who the appraiser is’’ in 212 CMR 2.04 was not going in favor of the insurer, the “new” Board has been manipulated to achieve that end. (Or say to get another bite of the apple.) Johnson, Garcia, Ye, Smith and Donovan are about to embark on yet another review of 212 CMR 2.0. Smith has made it quite clear that “his” intent is to address the following specific language, “If the appraiser (emphasis added) determines that preliminary work or repairs would significantly improve the accuracy of the appraisal, he or she shall authorize the preliminary work or repair with the approval of the claimant and shall complete the appraisal after that work has been done.” In addition, that would mean he wants the following definition of appraiser changed as well: “Appraiser - means any (emphasis added) person licensed by the Auto Damage Appraiser Licensing Board to evaluate motor vehicle damage and determine the cost of parts and labor required to repair the motor vehicle damage.” Please refer to Rule No. 39! And to Rule No. 40.

It would also appear that Rule No. 40 allows for tactics to be employed intended to mislead either with intent or due to being ill-informed. Although it was clearly stated by a Board member, “I do know that was a discussion in a prior Board meeting,” referring

to proposed changes to which “appraiser” “…with the approval of the claimant…” the regulation is referring to, I can find no written or video recorded evidence that such discussion ever took place. Unless, of course, the conversation took place outside the confines of a meeting of the ADALB with a party or parties seeking to accomplish what they could not accomplish after years of discussion in the Worcester court system. This would be one of those “sucker” punches referred to in Rule No. 42, because I am sure that once the misstatement is pointed out, there is a good chance it will be followed by an “apology” of sorts.

Understanding just these three rules from the Gibbs handbook should serve everyone well. Truly, there is no such thing as a coincidence, and when you get the sense that you’re being attacked, it is not without cause. Make no mistake: consumers and collision repairers ARE UNDER ATTACK, AGAIN.

An apology, as nice as it may be, does NOT excuse intentional bad acts such as those described.

More importantly, this proves why, if you are not part of the “ALLIANCE” – the only collision repair association being a watchdog to protect you – you need to join to support our efforts, as well as to stay informed of what is going on around you, so you do not get blindsided! See the application on page 7.

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repairs should be completed in a way that varies from the OEM procedures? If you do not, how do you make these determinations as to what you will/won't pay? Why do you feel that you are more knowledgeable about a repair than the shop that has been trained to perform those repairs?

Not surprisingly, the request was directed to Jeff Sibels from Progressive’s public relations team. Even less surprising was the response received: “Progressive’s goal is to handle and resolve all claims quickly, fairly and accurately in compliance with our policy and applicable law. In terms of the specific claim you reference, our claims team has been in contact with Mr. Piispanen to address his concerns and will continue to work with him in effort to reach a resolution.”

Waiting for such a resolution brings another quote to mind from Beckett’s play: “Nothing happens. Nobody comes, nobody goes. It's awful.”

In a move borne of obvious frustration, Piispanen appealed to New Hampshire Insurance Commissioner D.J. Bettencourt. “At what point will your office take this seriously that the insurance industry is intentionally underestimating their automobile claims?” one email asked. “The NH insurance unfair settlement laws and regs are very clear that underestimating claims is a violation of the NH laws and regs.”

Yet, the shop owner has little hope that his appeal will meet with any assistance from that angle. “Unfortunately, insurance departments take the insurers’ sides and insist they are honest, but really, they just don’t want to dig deeper into the misdoings of the insurance industry; they aren’t going to bite the hand that feeds them. So, carriers can go on doing what they want because no one is really overseeing their actions.

“It is not right and ethical that Progressive continues to take advantage of the NH claimants and intentionally undervaluing claims,” Piispanen continued. “But if the Department of Insurance has no jurisdiction over these types of disputes, the only place that they can be resolved is through the local courts.”

MASSACHUSETTS