Volume 2 - Issue 4 July/August 2019 - AASP MA

MASSACHUSETTS

PROTECTING CONSUMERS AND THE COLLISION INDUSTRY

Volume 2 - Issue 4 July/August 2019

InvolvementBy Lucky Papageorg

AASP/MA Executive Director

The Merriam Webster dictionary defines “INVOLVEMENT” in part as: “to have or in-clude (someone or something) as part of something, to cause (someone) to be included insome activity, situation, to cause (someone) to take part in something.” It further includes, “tocommit emotionally, to oblige to take part in.” As an industry, we need to take these words toheart. Only through involvement and commitment, will we be successful in our endeavors.

AASP/MA has been working diligently on many fronts and in many ways to assist theindustry as a whole, not just for its members to be successful in their businesses. Through ed-ucation and the sharing of information, our industry can learn to make informed decisionsthat benefit everyone involved. We must keep in mind that “no one of us is better, smarter orstronger than all of us combined.” AASP/MA successes come from within, and only whenwe all work together as colleagues towards a common goal.

Most recently, we have undertaken a task which, when completed, will be the founda-tion and cornerstone of our association’s attempt to once and for all, gather irrefutable infor-mation and documentation regarding the artificially controlled and suppressed Labor Ratehere in Massachusetts. We have nearly completed PHASE I of the information gatheringprocess of having 313 submitted surveys. As I write this, we are only 29 surveys shy of ourinitial goal.

As a state involved with National AutoBody Research (NABR) and the Variable RateSystem (VRS), we have reached this stage faster than any other participating state. This mayhave a lot to do with the fact (as you must be aware by now) that Massachusetts ranks at thevery bottom of reimbursement rates in the country, while having the third highest cost ofdoing business. If this does not prompt you to get emotionally and personally involved, I amat a loss at what will.

Gathering this information and implementing PHASE II will only be of value if moreand more of the shops in Massachusetts answer the “call to arms.” Your continued involve-ment is the key. If you have taken the survey, we thank you for your time, however, the five-plus minutes you spent is NOT enough. Please reach out to your colleagues and request thatthey add their voices to the results by visiting laborratesurvey.com. (Do so without discussionof your response or discussing a specific dollar amount.)

Your next step should be to show support by attending our general membership meeting

continued on page 7

July/August 2019 | Damage Report Newsletter | 1

Labor Rate???

Don’t MissOur AnnualFall Event!

Saturday, September

28at

Supercharged EntertainmentWrentham, MA

See Page 4

for details


President’s Messageby Molly Brodeur

Productivity Continues

It’s hard to believe summer is coming to a close. I hopeyou’ve all taken some much-needed time away and enjoyed theweather and time with family and friends. As we approach thestart of fall, AASP/MA continues to work diligently on a seriesof important issues. You may have seen a flurry of informationcirculating relative to the proposed abolishment of the 1963Consent Decree by the Department of Justice (DOJ).AASP/MA prepared a statement of opposition and submitted itto the DOJ. Watch your email for important information as tohow you can voice your opposition through a portal we’ve cre-ated on the AASP/MA website. The DOJ has extended thedeadline for industry commentary until October 2.

We’ve been meeting with legislators to lobby our two bills- S182 (which moves the ADALB from the Division of Insur-ance to the Department of Public Licensure) and our LaborRate Bill H983. Our filed matters have been well-received bythe legislators we’ve met with so far and we will be continuingour efforts this fall. If any of you have a legislator in your dis-trict that you have a relationship with, please let us know as wecan coordinate a meeting in your shop.

Our Variable Rate Survey (VRS) is ongoing and so far, abig success in terms of shops completing the survey. We thankthose that have participated thus far, and urge those thathaven’t taken the survey to please do so at your earliest con-venience. The survey only takes about five minutes to com-plete.

The next steps of the VRS will be revealed at our AnnualFall Meeting scheduled for Saturday, September 28 at Super-charged Entertainment. Richard and Sam Valenzuela of Na-tional AutoBody Research (NABR) will be our keynotespeakers. The meeting begins promptly at 8:30am and will endat 1pm. You are welcome to stay and enjoy some electric go-kart racing, or perhaps visit Patriot Place, the Wrentham Out-lets or Plainridge Park Casino. This event will sell out, so don’tdelay registering by either calling the AASP/MA office, or reg-ister online at aaspma.org.

Lastly, watch your email as our chapter meetings will bestart again in the next few weeks. Lucky will continue to bringthe most pressing issues to the meetings for discussion, and asalways, he will have some great educational pieces and infor-mation for you all. Thank you for your continued support ofAASP/MA and I hope to see you all for our Annual Meeting onSeptember 28.

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YOU CAN TAKE THAT TO THE BANK.

Chapter Meetings

resume this fall! Watch yourinbox for details!

MASSACHUSETTS


Saturday, September 28 Supercharged Entertainment

591 Washington Street, Wrentham, MA 020938am to 1pm

ANNUAL FALL MEETING

Have you taken the Labor Rate survey?Are you wondering about next steps and how to utilize the survey?

Are you looking for a tool that can change your business immediately?Then register TODAY for this special event!

AASP/MA is proud to present Sam and Richard Valenzuela of National Auto Body Research for:

- An update on Massachusetts' first-ever Labor Rate Survey- An in-person deep dive into Phase 2 of the Survey, and next steps

- A look at Billable Genie & more!

Please return completed form via email to [email protected], via fax to 973-235-1963mail to AASP/MA, P.O. Box 212, Marlborough, MA 01752 or register online at aaspma.org.

Please call the AASP/MA Administrative Office at 617-574-0741 with any questions

THIS EVENT WILL SELL OUT FASTRESERVE YOUR SPOT TODAY!

Breakfast and lunch are included. Go-kart racing is optional after lunch for an additional fee.More information will be sent to registered attendees as the event gets closer.

MAKE A DAY OF IT! Bring your significant other so they can enjoy the many local activities available(shopping, casino, etc.) after you learn from AASP/MA and the Valenzuelas!

Look out for information regarding hotel accommodations.

COST: $100 FOR MEMBERS; $150 FOR NON-MEMBERSAttendee Name(s):______________________________________________________________Company Name: _______________________________________________________________Telephone: ______________________Email:_________________________________________

PAYMENT INFORMATIONCredit Card Check (Make checks payable to AASP/MA; remit to address below)

CC#:________________________________________________________ EXP: _____ / ____ SECURITY CODE: _____ (3-digit code on back of Visa/MC/Disc; 4-digit code on front of AMEX)BILLING ADDRESS: ______________________________________________________________NAME ON CARD: ________________________________________________________________SIGNATURE: ____________________________________________________________________

EXP: _____ / ____ S

If you have not taken the National

AutoBody Research Variable Rate Survey yet,

do so today!

Help us complete

phase one of

our goal!

Almost there! As of 8/30/19,

29 more to go!

MASSACHUSETTS’ FIRST-EVER LABOR

RATE SURVEY

6 | Damage Report Newsletter | July/August 2019

ADALB Prolongs Inactivity onShop/Vendor Advisory RulingBy Joel Gausten

Although meetings of the Auto Damage Appraiser LicensingBoard (ADALB) often feature discussions and developments of criticalinterest to the Massachusetts collision repair community, the August 20gathering held at the Division of Insurance in Boston was notable forwhat didn’t take place.

Once again, the Board failed to address a longstanding proposedAdvisory Ruling (originally penned by Board member William Johnson[Pleasant Street Auto; South Hadley/Belchertown] and then-memberLyle Pare of Plymouth Rock Assurance] in regard to sourcing partsfrom vendors that refused to sell to particular shops. At the Board’s Au-gust meeting, it was determined that more time was needed to allowJohnson and Board member Samantha Tracy of Arbella Insurance (whoreplaced former member Joseph Coyne, Jr. of Home & Auto AppraisalBureau Inc. earlier this year) to review the Advisory Ruling for furtherdiscussion and a potential vote. Johnson cited “scheduling problems,”including Tracy’s time spent taking her appraiser exam, as the reasonfor the delay. The two Board members announced plans to get togetherto finally review the document prior to the Board’s September 24 meet-ing.

Meeting attendee Peter Langone (Langonet Auto Body & Frame;Agawam), an outspoken advocate for approval of the Advisory Ruling,voiced his frustration over the constant delays in the Board’s reviewprocess.

“We’re going on nine months without a decision on this,” he said.“For some shops, this is something we’re dealing with every single daywith every single appraisal from certain insurance companies…We re-ally need to get the decision made one way or the other so people canmove on and do what they need to do.”

The issues that led to the drafting of this Advisory Ruling werefirst discussed at the Board’s December 5 meeting. The topic was intro-duced by Pare in response to a letter he received by shop owner MikeBoucher (Custom Auto Body; East Longmeadow). According toBoucher’s correspondence, his shop received an insurance estimate thatprescribed a non-Certified Automotive Parts Association (CAPA)-certi-fied aftermarket bumper cover from a vendor that didn’t deliver to hisarea. Boucher then purchased a CAPA-certified part from another ven-dor and provided the insurer with a supplement that included a smallpart price increase for the CAPA-certified product. The carrier refusedto honor this additional charge.

“I don’t understand why an insurance company would refuse topay a price part increase on an aftermarket part if it’s certified and theshop uses it,” commented Pare.

The conversation then moved on to address a related issue con-cerning insurers writing estimates that list parts vendors that refuse todo business with the shop performing the repairs. Langone stated thathis facility was being blocked by certain vendors that insurers includedon their estimates.

“I’m stuck with a vendor that won’t come to me. They won’t evenallow me on their website…I cannot access the part, so I cannot followthe regulation.”

Then-Board member Joseph Coyne, Jr. (Home & Auto AppraisalBureau Inc.) expressed his discontent over the trend.

“The person who has the biggest problem here is the consumer,who is sitting without having his or her car repaired because a vendorrefuses to sell to a body shop,” he observed. “That’s a problem.”

Later, Pare opened the floor to anyone attending from the insur-ance industry who wanted to offer an opinion or resolution to the prob-lem. This offer did not receive a single response or comment.

The December discussion was the last to include Coyne, who wasreplaced by Tracy prior to the Board’s January 23 meeting in Boston.This meeting featured a review of Johnson and Pare’s draft AdvisoryRuling (with subsequent amendments suggested by Pare in bold):

Appraisers should continue to follow 211 CMR 13.04 (1) and (1c)

[…] on preliminary appraisals. If the vendor for the insurance companywhich has been listed as the source for the part(s) on the appraisal,cannot or will not make the part(s) available to the consumer and/orthe repair shop due to the fact they have no retail facility in the geo-graphical area or refuse to deliver such part(s) to the consumer and/orthe repair shop for any reason beyond the control of the appraisers, theappraiser shall negotiate a replacement part of the same type of part(s)listed on the appraisal from an alternative vendor or source which willmake the part(s) available to the consumer and/or repair shop, and theinsurance company shall be responsible for the costs of the replacementpart(s).

Tracy voiced unease with the draft’s aims. “If I’m a colossal jerk and I return everything that you send me

and you decide that it’s not worth doing –”“That doesn’t make somebody a jerk,” interjected Board member

Rick Starbard (Rick’s Auto Collision; Revere). “[The shops] do high-quality repairs.”

“Maybe they do high-quality repairs,” agreed Tracy. “So, I workwith you and I return 90-plus percent. You decide, ‘You know what?From a business perspective, it’s just not worth it.’ It’s not worth yourtime…Is it appropriate for me to step in and manage that relationship?”

Responding to Tracy’s question, Johnson stressed that the insurerindeed plays a critical role in shop/vendor interactions.

“If there’s high return volume, that has to be agreed [on] by the in-surance appraiser and the auto body shop. The auto body shop just can’tsend [the part] back and say, ‘I’m not using [it].’ The insurance ap-praiser would have had to go out there, look at the part and say, ‘You’reright. [The part is] not good quality’ and send it back. Otherwise, theshop would not have gotten paid originally. So, a high retail rate wasboth people agreeing […] that part was not of good quality before it gotreturned – which created the high retail rate. It’s not just the shop say-ing, ‘Oh, I don’t like this.’

AASP/MA Executive Director Evangelos “Lucky” Papageorg tookTracy to task for her negative comment in regard to shops with a highparts return rate.

“Because a shop wants to do quality work, you’re categorizingthem as ‘jerks’?”

Tracy later apologized for her “poor choice of language.” After voting to approve the suggested amendments to the Advisory

Ruling, the Board agreed to continue their discussion on the possiblefinal approval of this Ruling at their February 26 meeting. Unfortu-nately, this meeting never took place. A major personnel shakeup led tothe dismissal of both Pare and long-serving Chairman Gilbert Cox. TheBoard did not meet again until April 30. By that time, Cox had been re-placed by new Chairman Michael Donovan, and Pare had been replacedby new Board member Peter Smith (MAPFRE Insurance). The Boardvoted to table the Advisory Ruling until Donovan and Smith had an op-portunity to thoroughly review the matter. At the June 11 meeting thatfollowed, Johnson motioned to again table it until he and Tracy had anopportunity to “go through it and see if we can get something issuedthat the Board and the industry understand and go forward [with].” Ad-ditionally, he expressed a desire to delve deeper into “what the industrystandards are on returned parts” and work with Tracy to develop lan-guage for the Ruling that would be “palatable to all involved.” This ledto the most recent August 20 meeting and further inaction from theBoard.

“AASP/MA is greatly disappointed in the ADALB’s lack ofprogress on this Advisory Ruling,” Papageorg tells Damage Report. “Ifind it interesting to note that three of the five voting members who in-dicated they would vote in favor of a shop that submitted a complaintbased on these facts are now gone. Draw your own conclusions. TheBoard is charged with the responsibility to uphold their regulations andtake action on any conduct that threatens shops’ ability to work withinthem and protect the consumer/vehicle owner. We will continue to pushfor a fair and equitable solution that protects our members from outsideparties attempting to force them to do things that defy these regulations.The ADALB needs to do their job and act on this issue before moreshops and consumers suffer the consequences.”


on September 28. Through a thorough explanation and “deep dive” intowhat NABR and the information it has gathered here in Massachusetts (aswell as nationally), the full potential and power will be realized and under-stood. The creators of this powerful tool will be at the meeting to present,and you can ask them first-hand about the results attributed to their VRSprogram in other areas of the country. If you have not had the opportunityto speak with them previously, you will find their knowledge and their pas-sion to see our industry succeed inspiring.

AASP/MA will continue to bring you information, which you can useon a daily basis to improve yourself and your business. Our weekly tip andinformational emails, coupled with our local chapter meetings will keepyou informed and up to date. At the forefront of our efforts, is educatingand inform our lawmakers about our business and the many challenges weface. As a collision repairer, you must contend with everchanging technol-

ogy, an aging work force and a lack of incentive for individuals to becomepart of the collision industry as technicians or management, while dealingwith a suppressed Labor Rate. AASP/MA recently met with a Senator whocould not stress enough the importance of lawmakers hearing directly fromYOU, the business owners in their districts.

AASP/MA can bring issues to lawmakers’ attention, but YOU andonly YOU can make them understand with a simple phone call voicingyour concern and support of AASP/MA representing YOUR issues. You,after all, are the ones who can get them elected.

Only you can make it work. If you and your colleagues are not emo-tionally involved and committed enough to participate in events, meetingsand making calls when requested, the progress will be slow. We currentlyare building momentum and it is imperative to keep moving forward toachieve positive results which are within our reach. AASP/MA is only asstrong as the support it gets from you. YOU are AASP/MA. It is time tostep up the involvement. There is no better time to ask, “What can I do tohelp?”

Executive Director’s Messagecontinued from page 1

In the second week of September, Lucky will be visiting the Western region and hostinga chapter meeting on September 11. (Location TBD.)

He will be visiting shops in the Midstate region during the third week of September.

During the fourth week of September, he is visiting shops in the Boston/Northeastregion and will host a chapter meeting on September 25. (Location TBD.)

AASP/MA will present its fall meeting on Saturday, September 28 at SuperchargedEntertainment (Wrentham), featuring Sam and Richard Valenzuela of NationalAutoBody Research.

In the ;rst week of October, Lucky will be visiting shops in the Western region.

Lucky will be visiting shops in the Boston/Southeast region during the second week ofOctober and will be hosting a chapter meeting on October 9 at Bristol-PlymouthRegional Technical School (Taunton).

In the third week of October, Lucky will visit shops in the Boston/Northeast region.

During the fourth week of October, he will be visiting shops in the Midstate region andwill host a chapter meeting on October 23. (Location TBD.)

From October 28 through November 1, he will be visiting shops in the Boston/Southeast region.

Where’s Lucky?AASP/MA Chapter Meeting Schedule

Lucky can be reached at(617) 574-0741 or

[email protected]


Visiting Boston/Southeast

Visiting Western

Visiting Midstate

Visiting Boston/Northeast

M

M M

M

M

Visiting Western


Visiting Boston/Northeast

Visiting Midstate



By Nadine NesbittIt was once expected that collision repair shops were established to

repair or restore damaged automobiles. Over the years, our industry haschanged quite a bit. You are now required to have the skillset of mechan-ics, plumbers, electricians, engineers, negotiators, bill collectors,bankers, babysitters, career search firms and – now – insurance agents!With insurance rates as tenuous as they are, your customers are all ask-ing you to take their insurance policies into consideration. It would beone thing for you to simply assist with the coverage affecting their repair(collision, comprehensive, substitute transportation, towing and labor).But now, you are also supposed to be able to help them make decisionsabout paying “out of pocket” versus assisting them in using the cover-ages they have purchased to protect them if an accident occurs.

It would be so easy if we could go back four decades when pointswere easy to understand – a one meant one, a two meant two and eachadditional point meant more money at a set rate. Over the years, the for-mula has become extremely layered and tiered. Remember, there are 30pages describing and defining the Safe Driver Insurance Plan (SDIP)system, otherwise known as 211 CMR 134.00.

This article is part one of a multiple-part series. To begin, here arethe basics of the SDIP:

1) When you first get your driver’s license in Massachusetts (nomatter how old you are), you start at “0.”

2) After five clean years of no-fault driving (not getting a ticketthat you paid or not having an at-fault accident), you become “98.”

3) After six clean years of no-fault driving (see #2), you reach theBEST step – the coveted “99.”

4) If you receive a ticket or have an accident in which you aremore than 50 percent at fault, the slate is scribbled out and the calcula-tion may return to 0, but then steps are added.

5) Two points are assigned for moving violations, three points for“minor” at fault, four points for “major” and five points for very seriousthings like DUI.

6) The more steps you are assigned, the more premium you pay.

That is only the beginning. Since the rates for insurance companieshave been removed from the fixed and established system the state setnearly five decades ago, we have transitioned into “managed competi-tion.” What is that? Managed competition is when companies may settheir own rates. (Ah, free enterprise and competition is a good thing!) Todo this, they must apply for approval from our Division of Insurance(DOI).

Once rates are blessed by our DOI, the confusion sets in. Compa-nies develop rates based on their “appetites.” Companies love retention,growth and (of course) clients who do not have claims. They hire skilledactuaries to determine what they must charge based on their costs. (Whata concept!) There are hundreds of factors that go into this determination.Credits are given for all kinds of things: Companion policies, greatgrades for our students, low mileage, public transportation usage, alarmsystem credits – just to name a few. Now, additional rates are added forwhere you live, what your “tier” is and INCIDENTS. YES! Companiesare now allowed to rate policies with a history of incidents in addition tosteps. For example, take two identical drivers – all factors the same, ex-cept one has had two glass losses and a collision where it WAS NOTtheir fault. This person may have premiums that could range up to twiceas high!

Collision repair shop owners all over Massachusetts are being askedto predict rate implications as consumers schedule their repairs. Cus-tomers are deciding whether to pay directly versus. allowing the insur-ance company to pay on their behalf. I have co-owned both a collisionrepair shop and an automotive repair shop, and I do know it is muchmore comfortable dealing with a customer when a third-party “them”(either an insurance company or a warranty company) is paying. “They”become the bad guy. I understand how difficult it is to let a client knowthat it will cost XYZ to properly repair their car while knowing they areopening their own checkbook. I suggest that your response should bealong the lines of, “Our facility is here to fix your car safely and properlyas per manufacturer’s guidelines.”

To Be Continued . . .

What’s Going on with the Massachusetts Safe Driver Insurance Plan (Part 1)

10 | Damage Report Newsletter | July/August 2019

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IT’S NOT TOO LATE! YOUR LOGO COULD

BE HERE.CALL AASP/MA AT

617-574-0741



Volume 2 - Issue 4 July/August 2019 - AASP MA

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Transcript of Volume 2 - Issue 4 July/August 2019 - AASP MA