1998.05.28 - Records of Meeting



Minutes of Meeting

Automobile Damage Appraisers Licensing Board Subcommittee

A meeting of the Appraisal Licensing Board Subcommittee was held at the office of Commonwealth Automobile Reinsurers on -

Thursday, May 28, 1998 at 1:00 P.M.

The following members were present -

Mr. Robert Woods, Jr. C N A Insurance Companies

Mr. Michael Doran Premier Insurance Company

Mr. Ciro Fei Sentry Insurance Company

Mr. Fran Delage Hanover Insurance Company

Also present were -

Mr. Bob Correia Liberty Mutual Insurance Company

Mr. David Castro Commercial Union Insurance Company

Mr. Kevin McCarron Arbella Mutual Insurance Company

Mr. Bill Benoit Sentry Insurance Company

Mr. Larry McAuliffe Sentry Insurance Company

Mr. Frank DeSario Safety Insurance

Mr. Glen Tonnessen USAA

Mr. Bill Kelleher Plymouth Rock Assurance Corporation

Ms. Dawne Harris- Mills Trust Insurance Company

Ms. Kathleen Devericks Premier Insurance Company

Also present from the Automobile Damage Appraisers Licensing Board were –

Mr. Stephen Veiga Division of Insurance

Minutes of Meeting May 28, 1998

Automobile Damage Appraisers Licensing Board Page 2

Representative Producer –

Mr. James Doherty Doherty Insurance Agency

C.A.R. Staff -

Ms. Valerie Gedziun Vice President - Claims

Mr. Robert Bell, CPCU Claims Manager

Ms. Susie Almonte Winters Claims Analyst

C.A.

98.41 Automobile Damage Appraisers Licensing Board

Mr. Woods recapped the results of the May 27, 1998 ADALB meeting. He reported that the group of 9 companies that had been working with the Department of Revenue, the Licensing Board, and MABA had proposed 3 amendments to Advisory Ruling 97-98-1. The Board did vote to accept two of the three amendments. However, the third amendment was not approved and the paragraph in question will be rewritten and sent to the involved parties for input. The revised Ruling will then be presented to the Department of Revenue and if it meets with their approval will be the new Advisory Ruling.

Mr. Woods said that the 9 prior complaints on failure to pay sales tax on paint and materials that had been put on hold pending the results of this issue were dropped by the Board. However, from the date of the meeting the Board will entertain complaints on that issue as they now believe they have enough from the Department of Revenue to take the position that sales tax should be paid on paint and materials.

Mr. Woods stated that there are two future issues that are likely to appear on the

ADALB’s agenda. One is the issue of communication. The Board has Victor Fanikos researching what would constitute acceptable communications from a shop to a company on notice of supplements. Companies currently have 3 days from notice to assign the appraiser.

The second is the altering of an original appraisal when an appraiser goes in on a supplement and sees the work not being done as originally written.

These are at least two issues that are on the horizon. Nothing has been acted upon but they are being considered.

Minutes of Meeting May 28, 1998

Automobile Damage Appraisers Licensing Board Page 3

Mr. Woods then introduced a paint and materials comparison using the Mitchell Refinishing Materials Guide and an alternative paint system. Mr. Woods pointed that the alternative system gave a lower cost than did the Mitchell Refinishing Materials Guide. He said that presently Mitchell is the only published guide and it is not always easy to get the Board to move away from Mitchell to the “other forms of documentation” that are mentioned in Regulation 212 CMR.

After some discussion Mr. Fei made a motion that approval be sought from the Claims Advisory for the ADALB Subcommittee to conduct a survey on paint costs with the companies’ using their own methods and/or other methods verses the Mitchell Guide. Mr. Doran seconded and the motion passed unanimously. The results would then be presented to the Board. There were 5 companies at the meeting that volunteered. C N A, Plymouth Rock, Premier, Sentry, and USAA. Each will take 20 appraisals with damage ranging from $1,500 to $2,500. They will run the costs using their methods verses Mitchell. The idea behind this is to make the Board aware that there are other equally effective methods to cost out paint and materials.

The next meeting of the ADALB is scheduled for Wednesday, June 24, 1998 in Marlboro while the next meeting of the subcommittee is Thursday, June 25, 1998 at 10:30 AM at CAR.

Mr. Delage made a motion to adjourn. Mr. Doran seconded and the motion passed unanimously.

Robert W. Bell, CPCU

Claims Manager

Boston, Massachusetts

June 16, 1998

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