New England Automotive Report September 2023

COLONIAL NISSAN 104 Mystic Avenue Medford, MA. 02155

Phone Number: 781-395-3025

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 231 Linden Street Wellesley, MA. 02482

Phone Number: 800-228-8344

FAX Number: 781-237-6024

Contact: Dan Bettencourt / Wholesale Parts Manager

by Matt Ciaschini

EXECUTIVE DIRECTOR’S MESSAGE

8 | Truly Fortunate; Lucky You Might Say by Evangelos

“Lucky” Papageorg

by

Alana Quartuccio

by Alana

Quartuccio

Make the Right Choices

We are more than halfway through 2023, and AASP/MA continues to move forward on our campaign to “Break Free in 23.” We have made a lot of progress this year. Our bills continue to gain traction in the state legislature, and we continue to educate our membership on current industry topics. But our association is only as strong as our members, so we need you more than ever. We need your support as much as you need ours. We also need you to shift your outlook. If we remain positive and resolute, we will not be denied the things we are seeking to better our industry. There are a few different ways we can look at our businesses and lives to help shift that outlook.

“The greatest pleasure in life is obtained by improving.”

- Ben Hogan

We all can attest that it is difficult to improve our businesses, our employees’ lives and our own lives when caught up in the mundane minutiae of the collision industry. Even owners of the largest shops can get caught up in the smallest part of the repair process which monopolizes their time and makes it hard to focus on the big picture. Constant improvement is a must for our business and our lives, despite all the pitfalls and shortcomings which we deal with every day. What you choose to focus on can and will make all the difference. We could choose to focus on the labor rate inequity or choose to educate our customers, making them aware of all we have to do to fix their vehicles for little compensation. We could choose to focus on the lack of labor

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

force in our industry or choose to focus on the continued training of our techs, appraisers and front-line staff. We could choose to ignore proper repair procedures and to do things like we always have or we could choose to embrace technology to help us ensure we are doing the right thing to repair every vehicle. All the choices on the latter side would allow us to improve ourselves and our business and to not wallow in all the negativity that can so easily seep into our industry daily. Focusing on improvement doesn’t cost you anything but effort if you don’t want it to. Most of the positive improvements I mentioned are free of cost – and not just monetarily – but free of the cost of the burden that weighs on us when we choose to focus on the negative aspects of our industry and the stress it causes everyone connected. The first thing to improve is our mindset.

“Look at life through the windshield, not the rearview mirror.”

- Byrd Baggett

The obligatory car reference does not cheapen the sentiment in the above quote. We can all get caught up in the past. Caught up in the days when it was easier to fix cars. Caught up in the days when the labor rate was more equitable. Caught up in the negative relationship you may have always had with an appraiser or insurer. Focusing on the past can be wasted energy, especially if it’s negative. Using an opportunity to educate an insurance appraiser

Director Evangelos “Lucky” Papageorg

MATT CIASCHINI

Membership Application 2023-2024

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

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I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2023-2024 as provided for in this contract.

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

RECOMMENDED BY:__________________ FROM BUSINESS NAME: ___________________

Truly Fortunate; Lucky, You Might Say

As frustrating as the collision repair industry can be at times, (ok, most of the time) I, for one, feel very fortunate to have been involved in it for nearly 35 years. I know that many of you reading this have been involved in it for much longer and have seen the industry change and evolve with many twists and turns along the way. One thing for sure is that there has never been a dull moment. At times, some of the changes have set us back on our heels, but we are a very resilient bunch. As the saying goes, “What doesn’t kill you, only makes you stronger.” We have become stronger, as an association, as an ALLIANCE and as an industry. This is due – in no small part – to the efforts of many individuals who do not take “NO” for an answer and who do not throw in the towel at the sight of adversity.

I have been truly blessed to have had great mentors and guidance in my journey, navigating the twists and turns as well as the highs and lows over the past 35 years. Rather than list names and run the risk of missing anyone, suffice it to say, it is a very long list. Some of those folks I can no longer thank because they are no longer with us. Fortunately, as we lose some of our great leaders, mentors and supporters, others rise to the top and take on the responsibility of guiding our ship. It is especially uplifting to see the “younger” individuals (who will ultimately have the most to gain as we make advances) get involved. The new crop of leadership is not just here in Massachusetts or even in the northeast, but from across the country.

I recently had the great opportunity to attend the Collision Industry Conference (CIC) and the Society of Collision Repair Specialists (SCRS) meetings in mid-July. For those of you unfamiliar with CIC, it is a group of individuals representing ALL aspects of the collision repair industry. Concerned repairers, insurers, information providers and vendors meet on a quarterly basis in a forum where concerns and solutions are discussed openly and constructively, with no animosity, and with the common goal of improving the collision repair industry. Its mission statement reads: “A forum where collision industry stakeholders come together to discuss issues, enhance understanding, find common ground and communicate possible solutions to the industry.” It is a daylong event with reports and presentations from committees. One of the most memorable was during the November 2022 meeting when SCRS presented its “Blend Time” study. The presentation confirmed what those of us who actually repair and refinish vehicles already knew: It IS more time consuming to blend a panel properly. Two of the three major information

providers have acknowledged the study and are planning to revise their estimating platforms. If you are unfamiliar with the study, please go to this link scrs.com/blendstudy/ to learn more and join the hundreds of shops who are now collecting “fair and reasonable” payment for their labor and materials. (See page 18 for a recap of the latest on the study presented at the July CIC meeting.)

One of the major issues discussed at length was the issue of poorly underwritten original estimates, the delays in obtaining supplements and how poorly supplements are handled. At the center of the discussion was how vehicle owners are being adversely affected by the process, in particular if they elect not to have their vehicles repaired. A major focus of CIC is the consumer in the equation. A solemn reminder of the consumer is the “empty chair” that is on stage to remind us of why we are all in this industry and who it is that we serve.

The SCRS meeting was of equal importance as there was further discussion about the blend time study and what the next steps will be in addressing this issue and others alike. The SCRS meeting is strictly for collision repairers from across the country who are either individually represented or by an affiliate association, as is the case with AASP/MA. It is a forum where state representatives openly exchange ideas and programs they are pursuing. The group of affiliates also meets on a bi-monthly basis via ZOOM to share updates on efforts and to discuss specific topics of mutual interest. It is because of the exchange of these ideas and the efforts by leaders to delve into issues like the Right to Repair (R2R), that light is shed on underlying motivations and agendas which may otherwise not be considered.

Yes, we are indeed fortunate to have industry leaders and groups such as AASP/MA, CIC and SCRS working together to advance the collision repair industry. Here in Massachusetts, we have shop owners and vendors who give, not only extra time, but financial support through membership, donations to the AASP/MA PAC account and support the Lobbying and Legal fund. They do this so that we all may ultimately prosper while providing a much-needed service to motorists as well as jobs to thousands of individuals who support their families. The ALLiance provides the tools you need to educate yourselves and in turn your customers. One only needs to look at the recent Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company to realize the importance of a well-educated customer

continued on pg. 42

More Delays at the ADALB

Not much happened during the July 12 meeting of the Auto Damage Appraiser Licensing Board (ADALB).

The Board was scheduled for a hearing to review the potential revocation of Justin Forkuo’s (290 Auto Body; Worcester) appraiser license, but since Forkuo’s attorney was unable to attend the meeting, the hearing has been postponed until the next ADALB meeting.

Moving on to “other business,” Board member Peter Smith (MAPFRE) broached the topic of out-of-state appraiser licensing, explaining that there’s an issue with the system used; the system will not allow an automated renewal for appraisers who do not have a residence in the state of Massachusetts. He offered to talk to Bob Hunter to try to get an update for the next meeting. Candidates encountering the mentioned issue can reach out to Hunter directly to submit a statement and a check after which the reinstatement will be manually issued.

Smith also questioned the requirements for Massachusetts licensure as it pertains to non-residents, suggesting that it might be worth revisiting and offering to do some research with the intent of discussing at a later ADALB meeting.

The ADALB was scheduled to reconvene on August 8 but the meeting was postponed. There was no new date set at the time this issue went to press. Don’t miss the detailed coverage of the July meeting, only available in the August issue of the Damage Report members only newsletter.

AASP/MA members are strongly encouraged to listen to the recording of the July 12 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/ADALB0723.

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.

who may be denying a proper repair instead of dwelling on their history of abstinence can not only get you what you want, but also lessen your burden and stress from fighting and arguing. Look toward what the collision industry will become instead of focusing on what it was. Educate customers on problems we face and how they are affected by them instead of just sticking them with a bill. We should try to learn from the past but not dwell on it. Take what we learn to make our present business and lives better, and work toward shaping the future we desire.

“Don't be afraid to ask questions. Don't be afraid to ask for help when you need it. I do that every day. Asking for help isn't a sign of weakness, it's a sign of strength. It shows you have the courage to admit when you don't know something and to learn something new.’

- Barack Obama

We don’t know what we don’t know. The collision industry is full of this sentiment or at least should be. The problem is pretending you do know. Vehicles are filled with safety systems, blended metals/substrates and cutting-edge technology we could have never comprehended 20 years ago. We should never assume we will simply know what we are doing when fixing these modern vehicles. We need to ask those who can help us the questions that will make us better repairers. We need to use our industry

resources to ensure we are making proper repairs to these vehicles. Use our OEM data providers along with our estimating platforms as well as asking our vendors when those systems fall short of the data necessary to perform the work correctly. Use all the member benefits AASP/MA offers on its website that can help with so many aspects of our businesses (insurance and appraisal law and countless other documents). Or take advantage of our in-person educational meetings, whether it is a local chapter meeting or a statewide seminar with a national collision consultant /educator. These are all venues in which to ask questions, or ask for help to strengthen our businesses and our lives. We will all be better repairers if we continually ask the questions we need to educate ourselves and our staff.

AASP/MA thanks our members for their continued support of the only association that supports our industry in the Commonwealth. Without you, this is not possible. Please spread the word of our Alliance, and we will continue to help you improve your business by providing you with the answers to your questions so you can look forward to a bright future in the collision industry.

AASP/MA VICE PRESIDENT MATTHEW CIASCHINI is the co-owner of Full Tilt Auto Body & Collision (Easthampton, Northampton and Hatfield; fulltiltautobody.com) and can be reached at fulltilt.matthew@gmail.com.

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Brings Collision Industry Leaders Together to Tackle Critical Issues

It’s a precarious time for the collision repair industry. It’s critical for the industry to come together as a whole in order to produce safe and proper repairs. No vehicle owner should have to settle for less.

That message was heard loud and clear throughout the day as the Collision Industry Conference (CIC) got underway in Indianapolis on July 17.

Chairman Frank Terlep (AutoTechcelerators) reminded the packed room of the mission that brought them all together. “The vision is for this entire industry to work together to enable a complete, safe and quality repair for the person in that chair,” he stated, referring to the empty chair that sits on the CIC stage to symbolize the vehicle owner this industry works to protect. “It’s critically important that what we do here in this room, four times a year, is a big deal for the industry. Our mission in this forum is for collision industry stakeholders to come together and discuss ideas and issues, enhance understanding, find common ground and communicate possible solutions that we think can improve our industry."

Society of Collision Repair Specialists (SCRS) in collaboration with major North American refinish companies. SCRS Executive Director Aaron Schulenburg took the stage to share the highly anticipated sequel to the game-changing finds. The study concluded the 50 percent blending formula utilized by all three major information providers (IPs) Audatex, Mitchell and CCC was grossly underestimated. The study evaluated blending in comparison to full refinish values when considering solid, metallic and tri-stage refinish options across all the paint manufacturers and concluded that blend times are 31.59 percent greater than full refinished value on average.

Since the study was revealed and shared with the industry and the IPs, the big question has been: what’s next?

judgment of an estimator or appraiser following an on-the-spot evaluation of the specific vehicle and refinish requirements in question.” The change is said to go into effect in October.

Removing what he referred to as an “inaccurate number” from the system as the “guiding light” is a good thing for this industry, he added.

During the presentation, Schulenburg unveiled Audatex’s proposed changes to their system, as a result of the study, to the CIC audience:

One of the most compelling revelations to recently come out in the industry has been the results of the blend study led by

Schulenburg commended CCC and MOTOR for committing to review the study pretty much immediately, sticking to their timeframe for doing so and releasing a statement that said, “Given the variations among scenarios today, MOTOR believes that the estimated work time development methodology should defer to the

Audatex’s refinish labor is based on the use of new and undamaged panels. Audatex estimating does not provide a standard labor allowance for blended panels, as this requires an estimate preparer’s judgment, expertise and consideration of the unique requirements for each repair. Determination and assessment of labor and materials necessary in the blending process is best provided by the estimate preparer during the estimate preparation process. To assist the user, profile settings allow for customization to enter a specific blend percentage, as necessary.

Schulenburg shared additional notes revealing that “Audatex will now allow you

SCRS' Aaron Schulenburg unveils the latest developments of the blend study

CIC Chairman Frank Terlep

to specify the blend refinish percentage to be used when calculating refinished labor at the profile level, allowing an insurer and shop to agree on a default blend refinished time. You may enter a value between 50 and 150. This value is used to determine the blend refinished labor by multiplying it against the full panel refinish time. So, you're unable to reduce it below 50. You're unable to increase it above 150. When generating an estimate, the blend refinish will be calculated using the vehicle specified in the profile level. If no value is specified, a default value of 50 percent blend finish will be used as before, and the estimator can manually override the blend refinished percentage specified on the profile level, and it will be denoted with an asterisk on the estimate. Additionally, a new note is now added to the bottom of all estimates showing the blend refinished percentage used.”

Reiterating the important outcomes from both CCC and Audatex, responsively adjusting their products after concluding their own research and validation, Schulenburg disclosed that, unfortunately, communication from Mitchell has not mirrored those of its competitors. He was candid about Mitchell’s response which has been reluctant since the get-go. Initially, they claimed that paint companies and SCRS would not know how to perform time studies.

“We got into this to start the conversation, not to set out for a particular goal or objective,” Schulenburg stressed. “Our conclusions are just that they are conclusions. There are other information providers who, I believe, have justified that the conclusions were accurate based on their own internal determination. I don't think that a call cautioning embarrassment sets the tone for equally receptive parties to look at how we support the industry.

“They made routine attempts to prove that if they remove data that we observed and collected, then added back in data that we didn't observe but ‘should’ have…that if you change the equation enough, you could get back to a 50 percent result,” he continued sharing Mitchell’s argument. “It didn't make sense to us. And it didn't make sense to the other participants we had invited in who were observers to our study. But that was the argument. We were continually assured that they ‘give’ the industry enough.’ That was the basis of most of the conversation: ‘We give you enough.’”

As an example, Schulenburg revealed Mitchell’s challenge of the operation of applying sealer to the edge of a blend panel to match what the refinish manufacturer expects. “This is important because this is part of the variable that didn't exist 30 years ago,” relayed Schulenburg. “Applying sealer to the edge of a blend panel is a common expectation today for many of the paint companies. This is an example of training documentation that specifically says if applying sealer to the repair replace panel, and if applying sealer directly adjacent to the blend panel, extend/blend the sealer onto the edge of the blend panel. These are instructions. This is data. It’s not on every color; it's on colors that may need to reduce the halo because of the transparency of the color. This is how refinish technicians are being trained.

“Mitchell said blending is defined as applying color without necessity to cover undercoats to less than the full surface area of an adjacent undamaged panel. So, this was actually an important part of our conversations with Mitchell. There are technologies that are necessary today that aren't recognized as part of their blend process but are a part of modern blending. Fundamentally, we had

disagreements around whether or not that was blending. We had disagreements about whether datasets we collected could even be used because they didn't view it as a blending operation.”

Summing it up, the extent of the response received from Mitchell is that they will continue to study the issue, but as Schulenburg pointed out, “It’s difficult to take claims from a company that they continue to study an issue in earnest when the dialogue we've received today shows that they're comfortable remaining inactive.”

Despite how the terms have been used in the past, it has become quite clear that estimating and repair planning are most certainly not the same thing. Danny Gredinberg (Database Enhancement Gateway), Erin Solis (Certified Collision Group) and Ryan Mandell (Mitchell International) set out to more accurately define what each term means.

Mandell shared how the term estimate was once considered “gospel” in repair, but it’s since evolved. Digital tools have now created a visualization used to triage a vehicle to get a scope of the damage and to get it to the right facility for repair, “but it does not take the place of a repair plan.” Gredinberg relayed every single thing that needs to be done in order to research a repair from looking up OEM procedures to disassembling the vehicle 100 percent in order to make sure every damaged item is uncovered so that nothing comes along to haunt one later.

Solis stressed the need for using the proper definition, suggesting shops consider moving away from the term estimate in order to create impactful change.

Looking ahead to the next CIC event, WMABA’s Jordan Hendler revealed some exciting announcements for CIC’s 40th anniversary, which will be celebrated in conjunction with SEMA 2023.

Historically, the Red Carpet Awards are normally held during a breakfast event but to commemorate this milestone celebration, it will instead be celebrated as part of the CIC anniversary celebration following the CIC reception at the Westgate on Tuesday, October 31.

Danny Gredinberg (DEG)

Jordan Hendler (WMABA/CIC)

Jury Gives State Farm a Quarter Million Reasons to Do the Right Thing

A verdict coming out of Texas, which ruled in favor of a policyholder in a fight against an insurance giant, is gaining national attention.

A Rusk County District Court jury recently gave State Farm a quarter million reasons to be a better neighbor to its policyholders when 12 Texans found the insurance giant had knowingly or intentionally engaged in unfair and deceptive acts or practices in Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company, awarding the plaintiff $248,517.59!

Collins’ journey to this decision began over three years ago when he took his 2009 Toyota Tacoma pickup truck to Burl’s Collision Center (Henderson) to repair hail damage. Although the vehicle owner wanted the truck repaired, State Farm declared it a total loss and initially offered $13,450 for the truck, until Collins invoked the Appraisal Clause and hired Robert McDorman (Auto Claim Specialists) who determined the vehicle had been undervalued, causing the insurer to increase the actual cash value to $16,100.

“State Farm was taking advantage of our mutual client, their insured,” noted Burl Richards, owner of Burl’s Collision Center and president of the Auto Body Association of Texas (ABAT). When the insurer retrieved the Toyota Tacoma from the shop, they reimbursed Burl’s in the amount of $1,751.96 for a number of charges, including blueprint fees – an amount that was later “wrongfully deducted from the proceeds due and payable under the policy,” according to a court document.

The insurer paid Collins $15,398.05 for the totaled vehicle, refusing to compensate the vehicle owner for the deducted amount. After Collins’ attempts to reason with State Farm proved unfruitful, he decided to take civil action and retained attorney Rusty Phenix (Phenix & Crump, PLLC).

“The vehicle was repairable, but when the cost of repairs started increasing, State Farm totaled the truck,” Phenix recalled. “State Farm routinely uses an algorithm that undervalues these vehicles, and then the insurer uses a constructive total loss formula to declare vehicles a total loss when the repairs reach 70 percent of what State

Farm claims to be the actual cash value. The total loss formula in not in the language of the insurance policy.

“After the Appraisal Clause was invoked, the ratio of repairs to actual cash value decreased to 62.29 percent, but State Farm still refused to repair the vehicle,” he added. “A month after it arrived at Burl’s, the insurer retrieved it and compensated the shop for the repair fees associated with the claim.”

Learning of this, Collins and McDorman reached out to a State Farm adjuster who promised that the amount paid to Burl’s Collision would not be deducted from the insured’s settlement. “State Farm said they weren’t going to make any deductions, but they did it anyway,” Richards noted. “The insurer elected to do the wrong thing every step of the way. They took $1,750 out of the client’s settlement, but the bigger error was that the vehicle should have been repaired as evidenced by the fact that the truck was sold at auction with a clear title. This whole thing could have been avoided if the vehicle had just been repaired in the first place like it should have been.”

When Joseph Wayne Collins v. State Farm Mutual Automobile Insurance Company was heard in the Fourth Judicial District Court of Rusk County, 10 of 12 jurors found that State Farm had failed to comply with its policy agreement and that State Farm knowingly and intentionally engaged in unfair and deceptive practices. The jury awarded over $175,000 in additional damages against State Farm for its knowing and intentional conduct. When combined with court fees and the original under-indemnification, resulted in a total jury verdict of $248,517.59.

“The jury determined that State Farm had unfairly withheld money owed from their policyholder’s settlement and knowingly engaged in wrongdoing,” Richards stressed. “Those jurors made a statement through their jury verdict: insurance companies need to take care of their policyholders.”

Richards believes the jury verdict is a “big deal to us and our customer, but it’s not about the money; it’s about making change and hoping insurers will start treating people right. Mr. Collins felt like this was something he needed to pursue from a moral standpoint. It means a lot to have customers who are so passionate about doing the right thing and standing up against bullies like State Farm.”

AASP/MA Executive Director Lucky Papageorg championed the verdict calling it a win for David against Goliath. He commended Collins for having the courage to stand up and not take no for an answer and Richards forstanding by his customer against this wrongdoing. “This is a prime example of what an educated consumer and educated shop owner can accomplish by working together,” expressed Papageorg.

“Joe didn’t do this for the money,” Phenix agreed with Richards. “He did not want to see this happen to other people, so he did his part to put a stop to it. Joe Collins is a hero. The problem is that the insurer’s computer systems which control all these claims are set up to ensure the insured loses at every phase of the claims process. The insured is under-indemnified, while the insurance company retains their profit. And it will keep happening unless more good people stand up, object to this wrongdoing and refuse to stand for it. This turns into a game that consumers cannot win unless we’re willing to change the system.”

Phenix believes change will happen case by case in the court “with 12 citizens rendering a verdict. That’s where the power lies unless legislators or the Texas Department of Insurance decide to take action. Until these unfair practices become less profitable than doing the right thing, they’re going to continue.

“When the insurer makes $3,000 to $5,000 per claim using these tactics, a $100,000 case here and there may not change anything. But if we have a whole bunch of those – or perhaps something much larger – we might see some change,” he added, promising that there are more cases to come. “This is not the last one. We’re not finished yet; I’m passionate about consumers being treated fairly and plan to keep championing this cause. And the people on the jury were certainly interested in seeing some change.”

Richards believes this case is a step in the right direction: “We constantly file complaints with the Texas Department of Insurance (TDI) and tell them that insurance companies shouldn’t be making these types of deductions, but this issue has been going on for years. Each complaint yields the same generic letter that TDI doesn’t make these decisions; it’s up to a finder of fact to determine what’s fair and reasonable. Well, that’s exactly what happened here. A district judge and the jury – finders of fact – felt like this award was warranted. I feel really vindicated by their finding.”

And Phenix intends to keep fighting the good fight. “The more we dig and the deeper we go, the more problems we see…the more cancer we expose. The insurance industry implements so many schemes, but we’re finding different ways to utilize their systems against them each time we dive deeper into these cases. It’d be nice to go back to the days when insurance companies dealt in good faith, but as long as filing a claim remains an adversarial process, we’ll fight to protect consumers from these egregious actions.”

Papageorg echoed Richards’ and Phenix’s sentiments about standing up for what is right.

“If you don’t question the wrong things about the insurance process, you will end up losing. You have to be willing to fight. That goes for consumers, repairers and everyone on our side of the equation.”

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Toll Free: 800-882-9797

FAX: 978-774-9483

e-mail: eadams@iclautos.com

www.hondanorth.com

Schaller Honda

1 Veterans Drive New Britain, CT 06051

Toll Free: 800-382-4525

Direct: 860-826-2080

FAX: 860-826-2083

e-mail: jkiniry@schallerauto.com

www.schallerauto.com

Lundgren Honda of Auburn

525 Washington Street Auburn, MA 01501

Toll Free: 800-777-2044

FAX: 508-721-0872

e-mail:pmccarthy@lhonda.com

www.lhonda.com

Balise Honda

400 Riverdale St. West Springfield, MA 01089

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Balise Honda of West Warwick

509 Quaker Lane West Warwick, RI 02893

TOLL FREE: 800-992-6220

FAX: 800-254-3544

wparts@baliseauto.com

www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Pushing Ahead: AASP/MA Continues to Campaign for

Consumer Protection

There is just no stopping AASP/MA, especially when it comes to protecting consumers. It’s their mission to advocate for them while ensuring the survival and prosperity of the businesses they represent and the industry as a whole.

Their campaign for consumer protection is being heard loud and clear around the Commonwealth through various channels. One of the greatest examples of this lies in the amount of legislative support the Alliance has garnered once again for its proposed legislation in support of amending the Auto Damage Appraiser Licensing Board (ADALB) so it can more effectively protect consumers by having the Board housed under the Division of Occupational Licensure (DOL) rather than the Division of Insurance (DOI). AASP/MA has also made great strides in their efforts to reform the labor reimbursement rate.

In the last legislative session, AASP/MA generated a hefty amount of support in both the House and Senate for both bills. Although time ran out during last year’s legislative session,

momentum most certainly did not, and AASP/MA is pushing ahead as support for both bills resubmitted earlier this year continues to gain traction.

AASP/MA Executive Director Lucky Papageorg is positive about the way things are headed this year. “There is a tremendous amount of conversation taking place on Capitol Hill in support of our bills,” he says. “We are happy to have such great advocates on our side.”

In July, Papageorg, Ray Belsito (Arnie’s Auto Body; Charlton) and Brian Bernard (Total Care Accident Repair; Raynham) testified during the Joint Committee on Consumer Protection and Professional Licensure on behalf of “An Act relative to the licensure of appraisers” (HB 262, SB 213 and SB 214). This legislation not only seeks to move the ADALB from the DOI to the DOL but would also require term limits for members and add two consumer representatives. (Download the full text of HB 262 at bit.ly/ NEARhd2860.) In its current state, the ADALB has been chided

for its ineffectiveness and considered biased as the Board members who represent the insurance side outweigh the collision repair side three to two. The proposed changes would level the playing field, especially with the addition of consumer representation which the Board currently lacks.

Papageorg argued that the appraiser damage license is a technical license much like the licenses of other professions such as electricians, plumbers or hairdressers which the DOL already oversees.

“The auto damage appraiser license is a highly technically based license, not an insurance license nor an insurance-carrier related license. Simply put, the auto damage appraiser license is a license of a technical professional who is neither an insurance company nor an insurance producer,” Papageorg stated.

He stressed that these bills would also serve to strengthen the consumer protection mandated under the state general law which created the ADALB. The addition of two new individuals

by Alana Quartuccio

to the Board would “represent the interest of the consumers and avoid partisan disagreements that come up between the insurance industry and the collision repair industry.”

“Consumers within the Commonwealth are lucky we have the ADALB,” Belsito, who serves as AASP/MA’s legislative chair, told the Committee. “It serves as a technical resource for all appraisers insurance and collision repair. It serves as a forum for which differences in opinion regarding repair procedures can be heard. This is a technical license, not a standard insurance license. It’s paramount that all stakeholders affected in the industry are represented but also that one stakeholder should not have more influence than another. This isn’t the case with the current makeup of the ADALB.”

Belsito called the move to the DOL essential in consumer protection.

With more and more changes to vehicle technology making safe and proper repairs critical in protecting consumers, Belsito emphasized, “Insurers don’t have that technical expertise to make these decisions for consumers. To put it bluntly, they should not be making these decisions in a vacuum, as they are.”

In response to opposers who have called the ADALB nonessential and proposed legislation to dissolve the Board, Belsito said, “That statement could not be further from the truth. Even in its current state, the Board acts as a deterrent to the bottom line thinking of insurance that shops deal with daily. The board currently eliminates some of the most egregious repair requests made by insurers that even insurance appraisers don’t agree with. A lot of these requests are so egregious that no insurer would want them aired in front of the ADALB. These include repair versus replace decisions that are not ethical, part sourcing decisions that do not correlate with the vehicle being repaired, even outright denial of certain repair procedures that are necessary for a safe and proper repair. People could have good intentions, but we all know those intentions are trumped by the bottom line each and every day, especially in the insurance world. Trust me when I say this Board is essential…and it’s even more essential that we move it to the DOL.”

Bernard called the ADALB “unbalanced and inherently biased.” The role of the appraiser is to “uniformly access and document damage for consumers. Appraisers should not be divided and categorized as either an insurance appraiser or a repair shop appraiser who are pitted against each other. We should all be held to the same standards.

“We need to let the consumer into the room,” he added. “This move would give the consumer a seat at the table and make the Board accountable.”

Positive messages will hopefully continue to bring on positive results now that legislators are returning to Capitol Hill after the summer break. AASP/MA urges collision repairers to email admin@aaspma.org to sign up for notifications so they don’t miss the call to action. Strength in numbers is key toward change, and the Alliance can’t do it without a collective voice. Be sure to be ready to make your voices heard.

PARTS.

THEY’RE CALLED “ORIGINAL BMW PARTS” FOR GOOD REASON. FOR UNCOMPROMISING PRECISION AND INCOMPARABLE QUALITY, YOUR BMW CENTER IS YOUR ONE-STOP SHOP FOR EVERYTHING BMW.

For Original BMW Parts, contact one of these authorized BMW centers:

BMW of West Springfield

1712 Riverdale St.

West Springfield, MA 01089

PH: 413-746-1722

FAX: 413-304-9009

bmwwestspringfield.com

New Country BMW

1 Weston Park Ave.

Hartford, CT 06120

PH: 860-240-7881

FAX: 860-240-7873

newcountrybmw.com

BMW of Stratham

71 Portsmouth Avenue

Stratham, NH 03885

PH: 603-772-0000

FAX: 603-772-9436

bmwofstratham.com

BMW of Warwick

1515 Bald Hill Rd.

Warwick, RI 02886

PH: 401-821-1510

FAX: 401-823-0530

bmwofwarwick.com

THERE HAS NEVER BEEN A BETTER WAY TO BUY THE WORLD’S BEST ENGINEERED

Hard Lessons in Software: Protecting the Shop and Safeguarding Personal Data

So many of the tools used today in our shops are, or involve, software. And every piece of software has a EULA.

End User License Agreements (“EULAs,” pronounced: yoo-luh) are a way of life for each and every one of us: individuals and businesses alike.

I knew this was a timely topic as soon as our Executive Director, Lucky Papageorg, messaged me from the Collision Industry Conference in Indianapolis. Lucky asked whether I was knowledgeable about EULAs, and it just so happened that I had very recently completed a EULA review for a Coverall Law client in Massachusetts.

EULAs are legal agreements that give you access to an application or software. You have to sign them (or check a box) before you can use the application or software owned by the service provider. My most recent client-example was an online portal, created by an auto manufacturer, for vehicle maintenance and repair information. These OEM tools are absolute necessities for shops

these days.

EULAs are going to dictate who gets to use the resource and information, how it’s used, how much you pay, when the use stops, what happens when using their information results in an accident, what they get in return and so on.

EULAs come with a number of complex and interweaving issues, but I can leave you with two things: your first consideration in a EULA and the developing privacy issue which was spoken about at the recent conference in Indianapolis.

The first question I always want to ask when looking at any agreement is: “Who are the parties to the agreement?” EULAs are no exception.

If a shop owner, manager or associate enters a EULA as an individual, that is the individual who now gets access. So, typically, the shop wants to make sure that the entity (the shop’s LLC or corporation) is the proper party to the EULA.

continued on pg. 38

WHY GENUINE PARTS?

IRA Toyota of Manchester 33 Auto Center Road Manchester, NH 03103

Toll Free: 800-828-6076

Direct: 603-657-2410

Fax: 603-657-2419 stirrell@iramotorgroup.com www.iramotorgroup.com

IRA Toyota Danvers 161 Andover Street Danvers, MA 01923

PH: 800-774-8411 ext.1

Direct: 978-739-8306

FAX: 978-739-8098 www.iramotorgroup.com

Grieco Toyota 415 Taunton Ave. East Providence, RI 02914

Direct: 401-438-2206

Fax: 401-431-0673

toyotaparts@griecocars.com www.griecotoyota.com

Wellesley Toyota 216 Worcester Street Wellesley, MA 02481

PH: 800-734-0006

Direct: 781-237-4042

FAX: 781-237-3481 parts@wellesleytoyota.com www.wellesleytoyota.com

Bernardi Toyota 1626 Worcester Road Framingham, MA 01702

Parts Direct: 800-248-3033

FAX: 508-879-7895 www.bernarditoyota.com

Balise Toyota 1399 Riverdale St. West Springfield, MA 01089

TOLL FREE: 800-992-6220

FAX: 800-254-3544 wparts@baliseauto.com www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

Balise Toyota of Warwick 1400 Post Rd. Warwick, RI 02888

TOLL FREE: 800-992-6220

FAX: 800-254-3544 wparts@baliseauto.com

www.BaliseWholesaleParts.com

One Call, One Truck for 14 Brands!

continued from pg. 34

Standard language among EULAs will give access to employees, independent contractors, agents, etc. of a legal entity (LLC or Corp.), but you don’t get that if the license is only for a single individual. But there are other reasons you want the EULA going through your company, and not yourself.

Standard in EULAs is an indemnity clause. If anything goes wrong relating (in any way) to the use of their software, you agree to defend them in court and hold them harmless. So, if an OEM tool suggests a certain repair, which then leads to a future accident, the EULA says that they are harmless, and you are on your own.

Again, it’s standard language, and it’s the reason we have: (1) common sense if something in the tool doesn’t seem right, question it; (2) limited liability entities your shop should be operated through an entity designed to keep the liability inside that entity; and (3) insurance the entity must be properly insured, or else you lose limited liability and ownership now bears the burden personally.

The party to the agreement is important. And having that entity created and maintained the right way is just as important as properly insuring against all risks. EULAs are designed by the software owner (an OEM, in our example.) So, EULAs are going to be written in a way that benefits the other party in the greatest way possible. In order to use the tool, they are going to require the shop to sign the EULA.

The recent panel in Indianapolis had a different focus, as I understand. Several states have passed data privacy laws which means shops must take steps to protect the personal information of their customers. I called this a developing issue above, because in Europe, this body of law has been established for several years.

Violation of a data privacy law is particularly painful for two reasons. First, a violating shop is held strictly liable, meaning that you are in trouble even when you haven’t done anything “wrong.” The second painful piece is that your liability for the breach goes beyond the initial breach and continues on to later unauthorized uses of that personal information. So, a data breach could haunt a shop for years.

Under Massachusetts privacy regulations, every shop “must develop, implement and maintain a [written] comprehensive information security program.” That program must have “administrative, technical and physical safeguards” relative to the need, amount of data stored and your shop’s size and resources.

The law is still developing in the US. There are consultants you can hire to look over your practices and perhaps to write up a program for you. This privacy issue will only get more important with time. So, everyone needs to adopt best practices: locking file cabinets, personal passwords, firewalls and secure servers.

And the data which we have in our systems is sometimes interchanged with other software controlled by EULAs. Now, more than ever, shops have to consider how they safeguard customer and employee data and which other programs are getting what data and for what purposes.

I have been part of teams that have done the analysis necessary to overturn each stone and map to determine which personal data is going where. It is a long and cumbersome process that is commonplace in Europe. For the time being, shops in Massachusetts should adopt common sense approaches to data security and include a disclosure about personal data usage in their customer intake forms. Get customer authorization for the reasonable use of that data in the course of completing the repair.

But while data privacy law will continue to grow and develop for years to come, there is an area of law which is much more settled. Make sure that your liability is safely secured in an entity which limits the personal liability of employees and owners. That entity needs to be the party signing EULAs, creating agreements with the vehicle owners and securing the personal data stored by your shop.

One great way to stay in the know on this and many other issues facing you and your shop is to be a member of AASP/MA. As more issues arise, AASP/MA and Coverall Law will work together to keep the ALLiance members informed and protected. See page 7 for membership application.

MASSACHUSETTS

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) 6355329 or spreston@coveralllaw.com.

"Now, more than ever, shops have to consider how they safeguard customer and employee data and which other programs are getting what data and for what purposes."

Boch Hyundai Boch Chevrolet

THE SERVICE NEVER STOPS AT BOCH HYUNDAI!

PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210

VISIT US: 391 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062

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PARTS LINE: 781-762-9210 TOLL FREE: 800-559-9210

VISIT US: 381 Boston Providence Hwy Route 1, The Automile Norwood, MA 02062

E-MAIL: bchwholesale@ boch.com

One Call, One Truck for 14 Brands!

EXECUTIVE DIRECTOR'S MESSAGE

continued from pg. 8

and shop who are willing to fight because they know what is right and just. The more vehicle owners and shops who stop taking “NO” for an answer, the better off we will all be. It may not sound like a lot of money in the scheme of things, but how many times do you think insurers can take a hit of a quarter of a million dollars along with the bad publicity? How many times do you think juries will have to listen to stories of abuse, such as what happened in the Texas case before those judgements reach a million dollars or more, inclusive of punitive penalties? As higher punitive amounts are added due to the knowing and intentional use of unfair claims handling practices, insurers will get the message that their actions will no longer be tolerated. For more on the story in Texas see the article on page 24.

We are all indeed fortunate to be involved in the collision industry, especially now. There is change coming and we can make those changes happen at an accelerated pace if we ALL do what we know is right when repairing vehicles, by documenting and following OEM procedures, charging a fair and reasonable rate for our service and collecting for the vital work we perform.

You are lucky that the ALLiance is here to fight for you and your customers…Join the ALLiance NOW!!! Help US, help YOU to make the change toward a better future. See the membership application on page 7.