ADALB’s Agenda Sees Promises for Future Reviews

The items reviewed at the most recent meeting of the Auto Damage Appraiser Licensing Board (ADALB), held on March 16, primarily resulted in postponements, acknowledgements that future review will be needed and prevarication.

One item on the agenda called for the review of the revocation of a damage appraiser’s license held by a body shop owner, but the appraiser requested and received a postponement based on the fact that he is in the process of appealing the case in question.

During the call for “other business,” Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) mentioned a recent issue in his business where an insurance company declared a vehicle a total loss without an inspection. “This is a clear violation,” Johnson stressed. “Number one: It’s steering, which is not technically under our purview. But number two, there was no personal inspection, yet they’re putting in writing that the regulations as no one can take an estimate written by a licensed appraiser and then make changes. The Board agreed to send a letter notifying the company that the reference verbiage is against Massachusetts regulations.

Secondly, Starbard observed that he’s frequently seeing parts being written that are significantly older than the car they’re intended for, yet insurers are insisting they are of like kind and quality because they fit. For example, a used door from a 2009 vehicle being written for a 2015 vehicle is “hardly the same or better in my opinion,” he said, suggesting that the ADALB consider clarifying the matter through an advisory ruling.

Johnson’s impression of LKQ is “the same or better quality. As it relates to sheet metal, that means the same model year or newer, and when it comes to wear on parts, that means the same mileage or less.” vehicle has been deemed a total loss. And it may very well become a total loss, but they cannot put the cart before the horse. The insurance company is clearly violating the rules and regulations.”

Attorney Michael Powers instructed Johnson, as the business owner, to send a letter to the insurer that notes what the CMRs say in regard to personal inspection and total loss, asking how they are complying. Once he has that information, the ADALB will have clear documentation to review, according to Powers.

When Board member Samantha Tracy (Arbella Insurance) pointed out that the note that Johnson had referenced wasn’t sent by a licensed appraiser but by a different department, Johnson informed her that he’s “sick of hearing ‘it wasn’t a licensed appraiser; it was just the insurance company.’ It’s still a clear violation!”

Board member Rick Starbard (Rick’s Auto Collision; Revere) brought two matters to the Board’s attention. First, a particular third-party claims handler has included language at the top of their estimates indicating that “this estimate supplement is subject to audit and revision by the insurance company,” which is against

Powers suggested that Starbard draft a letter with a proposed solution for the Board to review and discuss before sending to the Department of Insurance.

The Board retired to Executive Session to review the seven (of 100) complaints filed against licensed appraisers by a single auto body shop owner, who is also a licensed appraiser.

The ADALB is scheduled to reconvene on May 9. Don’t miss the detailed coverage of the February and March meetings, only available in the April issue of the Damage Report members only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the March 16 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/ADALB0323.