Doss and Assoiciates Vehicle Appraisal Standards by ijr13051


									         Doss and Assoiciates Vehicle Appraisal Standards

Doss and Assoiciates offers a variety of claims administration services to numerous
clients, and regardless of the particular service required, we will always be dedicated to
providing the client with a quality product. In keeping with this philosophy, and to insure
compliance by all personnel, Service Standards have been developed and are set forth
herein. In lieu of any specific instructions from our clients to the contrary, the Service
Standards will provide guidelines to insure quality and uniformity to the handling of all
loses for all clients.

Personnel, at all levels, are expected to comply with the procedures set forth in the
Service Standards. Job performance evaluations will be considered on the basis of an
employee’s degree of compliance to the Standards.

Associate office management and supervisory personnel will train, instruct, and conduct
all claims supervisory functions within the branch office on the basis of and in
accordance with the Service Standards.

Supervision will continuously stress and monitor adherence to the Standards by all
associates. Futurity review audits will be performed continuously to assess total
compliance to Standards.


   I.      Service Time Requirements
           a. Appraisal Service Time Standard:
              Appraisal contact is to be made the same day we receive assignment,
              inspection of vehicle within 48 hours, and appraisal within 72 hours. In
              those cases where appraisal cannot be completed as scheduled, notify
              adjuster/client by Status Report indicating the delay and the cause. The
              Report must be sent if the appraisal is not completed within 72 hours.
           b. Appraisal Futurity:
              All personnel need and will receive supervision on a regular basis. Claims
              handling personnel with less than one year of experience will be placed on
              a weekly file review system. Claims handling personnel with more than
              one year of experience must have their files reviewed every two weeks,
              unless the manager of that office deems it necessary to continue a weekly
              review in view of that person’s ability. Claims handling personnel who
              have in excess of five years experience, and whose ability permits, may
              have their futurity read at longer intervals, but under no circumstances
              may it exceed a monthly review by a supervisor or branch manager.
         Supervisors will note and initial futurity review dates in the spaces
         provided on the Claims Progress form. After a futurity review has been
         completed, it is the associate’s responsibility to review and follow the
         comments and recommendations provided.
         To achieve accuracy and adequacy of report content, a manager or
         assistant manager is required to review (prior to mailing) all reports to
      c. Heavy Equipment Service Standards:
              i. Unit Inspection Standards
                  Service Time Standards-24 hour contact
                                           -72 hour inspection
             ii. First Client Contact- Phone contact to be made with client upon
                  completion of initial inspection.
            iii. First Report- Completion within seven (7) calendar days after
                  receipt of assignment.
            iv. Subsequent Reports- Intervals of fourteen (14) days, unless
                  otherwise specified by client or when file has been noted for longer
                  reporting. Duration not to exceed thirty (30) days.
             v. Closing Report- When all necessary activity has been completed.
II.   Quality Control Mechanisms

      a. Procedural/Service Time Compliance

      Rating Key:
      1 Performance is Unsatisfactory          Below 75
      2 Performance is Below Requirements      76-83
      3 Performance Met Requirements           84-90
      4 Performance Exceeded Requirements      91-95
      5 Performance Outstanding                96-100

      Variance Level
      More than 6%       1 Performance is Unsatisfactory
                4-6%     2 Performance is Below Requirements
                2-4%     3 Performance Met Requirements
                0-2%     4 Performance Exceeded Requirements
                0        5 Performance Outstanding

      b. Heavy Equipment Quality Control:
         In order to monitor and maintain a quality heavy equipment program, the
         following review procedures should be followed by all employees writing
         appraisals on heavy equipment of any type.
              i. A Copy of the completed file contact on all heavy equipment
                 assignments completed by Material Damage Appraisers in excess
                 of $5,000.00 will be forwarded to the Material Damage Advisor
                 for review and recommendations.
              ii. Reporting limits will be raised or lowered by authority of the
                  Branch Manager.

                  File will be reviewed for the following procedural and technical
                          Service Standards
                          Reporting content and accuracy
                          Technical content and application
                          Form completion
                          Total Loss Evaluation
                          Charging and billing procedures
III.   Reporting Requirements
       a. Preparation of Damage Appraisal:
          The independently prepared appraisal must include (1) a dated, signed
          appraisal showing the location of inspection; (2) the make, year, model,
          vehicle identification of serial number, license number, and body style,
          plus all extra equipment; and (3) the condition of the vehicle described
          completely, including the odometer reading and a listing of old, pre-
          existing, or unrelated damage. Use a tread depth gauge when indicating
          tire condition on all appraisals and indicate in 32 seconds of an inch tread
          remaining. Every area of information is to be completed. If there is a
          reason why it cannot be, it must be so indicated (UNK- for Unknown,
          None, N/A for Not Applicable). Absolutely no empty blocks or spaces
          should remain on a completed appraisal.
          Accurate time allowances should be established in hours on all items to be
          repaired or replaces; overlap or related operations should be removed.
          Replacement allowances should be made only when parts cannot be
          economically or properly repaired. Replacement figures should be based
          on new, used parts of Like, Kind and Quality (LKQ) exchange parts or
          aftermarket parts, whichever is available, appropriate and most cost
          Depreciation or betterment should be applied whenever there is a change I
          in value because of wear, age, usage or other cause.
          Do not copy, rearrange, or use a shop estimate in preparation of an
          appraisal. The appraiser’s objectivity is removed by knowledge of the
          shop estimate.
       b. LKQ Replacement Parts:
          Apply appearance allowances whenever damage is slight and the age or
          condition of the vehicle or part does not warrant replacement, and does not
          affect the safety or operation of the vehicle. This can arise under many
          circumstances and can involve almost any part of a damaged vehicle.
          When possible, recycled parts should be utilized in the repairs and/or
          replacement of nonfunctional sheet metal parts on all model vehicles. The
          recycled parts must be serviceable and in good condition. In this respect,
          the appraiser should have prior knowledge of the type and condition of the
          merchandise a particular salvage yard sells. Replacement assemblies for
     suspension parts, steering, brake parts or any other safety item will not be
     recommended, unless specifically requested by client; then comments
     must be made on the Appraiser’s Report.
c.   Exchange Items:
     User rechromed bumpers, record radiators and other rebuilt parts. This
     applies particularly to generators, starters and certain other mechanical
     items. Their warranties often exceed the new, and the savings are
     considerable. If not available consider betterment when applicable.
d.   Aftermarket Parts:
     Aftermarket parts should be considered and utilized whenever they are
     acceptable to the owner.
e.   Sectioning:
     Sectioning or repaneling procedures on frame type vehicles should be
     followed wherever feasible, as opposed to complete replacement
     Unibody structural sectioning should be applied only according to
     manufacturer’s specifications or specific client instructions.
f.   Front End Alignment:
     Front end corrections should be allowed only in those cases where there is
     obvious or related damage to the frame rail, unibody suspension
     supporting components, suspension, wheels or the steering apparatus.
g.   Contract Prices:
     “Contract” prices to avoid a total loss or accommodate an owner should
     not be established. If the owner wants to save the unit, advise the adjuster
     that the shop has indicated a willingness to contract for a given figure.
     The associate can them conclude the claim with the owner leaving him
     and the shop to work out the details. A contract repair arrangement
     releases the repair facility of any control over the manner of quality of
     repairs. The vehicle owner can only do this. No contract repair figures
     are to be established unless specific client instructions request it.
     Explanation is to be made in the comment section of the Associate’s
h.   Comment Section:
     Consistent and generous use of the comment section of the Appraiser’s
     Report is urged. Only by receiving a full report can the company or the
     adjuster view the loss through the eyes of the appraiser. Use additional
     narrative reports if it is deemed advisable.
     Comments made on the Appraisal Form should be limited to situations
     involving the repair facility only.
i.   Recap of Appraisal:
     When the final computations are being made the following items must be
     clearly shown: (1) the repair facility’s labor rate being applied; (2) the
     parts discount being allowed when applicable; (3) the percentage of tax
     being applied and what sum of money it is being applied to; (4) all towing
     and storage bills must be verified and a copy obtained. When this is not
   possible, a comment explaining why must be made on the Appraisal’s

   Repair Time_________Hrs._________$_____________
   Sublet______________             $_____________
   Sub Total___________             $_____________
   Tax________________% on $_______$_____________
   Towing_____________              $_____________
   Total_______________             $_____________
   Total Amount of Repairs          $_____________

j. Agreed Figures:
   A signed figure will be established whenever reasonably possible.
   Associate will discuss repairs with repair facility wherever possible.
   Should specific client instructions request any variation in handling, only
   those areas specifically altered by those instructions should be changed,
   but in no way should we compromise our ethical standards.
k. Authorization to Repair or Disassemble:
   Do not under any conditions authorize a shop to make repairs or to
   disassemble a unit. The owner must authorize repair or disassembly at
   shop of his own choice. Though it is Doss and Assoiciates policy not to
   recommend any repair shop, when owner is transient or otherwise requests
   names of quality repairers provide him with names of several reputable
   shops including a dealer for his own selection of a repairer. The foreman
   at the repairing shop should be furnished with a copy of the appraisal, and
   his approval of it obtained when possible.
l. Supplements:
   When a supplement or reinspection is necessary, the appraiser who
   prepared the original appraisal should return to the repair facility and
   verify any additional damage. If this is not possible, the reinspection
   should be assigned to an alternative appraiser. No supplements will be
   authorized without an inspection. During the visit to a shop for a
   requested supplement, the appraiser will determine whether all items
   allowed for replacement on this original appraisal have actually been
   replaced. If they have not, and some of them were repaired, the appraiser
   is in an excellent negotiating position and should correct the original
   appraisal and/or the supplement by deducting for work not performed and
   parts not replaced. The repair facility representative accepting the revised
   repair figure must sign the supplement. Any deviation from procedure
   must be cleared with material damage advisor.
m. Total Losses
   On all borderlines, when damage exceeds 70% of replacement value, and
   total losses, indicate the retail and wholesale book prices or the true value
   of the particular unit depending on client preference. Include a condition
   report showing old damage, excessive wear and tear, rust or other
     reconditioning necessary, to substantiate your values. Include you opinion
     of the salvage value or bids depending on client preference on both totals
     and borderline totals. As soon as a unit has been determined a total loss,
     the person responsible for salvage handling must be called and given all
     pertinent information in order to avoid excessive storage charges. A
     comment to the completion of this requirement must be entered on the
     Appraiser’s Report- Total Loss Evaluation. The comment is to include the
     date the call was made and the name of the person spoken to. Follow the
     total loss procedures accurately and pay special attention to individual
     client instructions.
n.   Photographs:
     Adequate photographs, of high resolution, taken close up, clearly showing
     a description of all damages and points of impact must be provided with
     the appraisal as requested. Do not send hazy, very dark, very light, or low
     clarity photographs. When using print type film the negatives are to be
     sent to the client. All photographs are to be mounted and charged
     according to the current Rate Schedule. Every attempt should be made to
     clearly depict all damage being indicated on the appraisal.
o.   Driving Time/Mileage
     Both driving time and mileage are strictly prorated between assignments.
     The only variation will be if specific mileage arrangements are part of a
     flat rate appraisal agreement between a client and Doss and Assoiciates.
     All heavy equipment, driving time and mileage will be handled on a Time
     and Expense basis.
p.   Fee:
     Appraisal fee is to be charged strictly by the current Material Damage
     Rate Schedule, unless a specific Flat Rate Vehicle Damage Appraisal
     Agreement has been made between the client and Doss and Assoiciates.
     Very specific client instructions.
q.   Disputes with Repairer/Owner Over Appraisal Items:
     Any honest element of doubt concerning an appraisal item should be
     indicated on the appraisal showing amount and explanation of
     circumstances. When dispute cannot be reasonably resolved, it may be
     necessary to identify several reputable shops that will repair the vehicle at
     the appraised price and relate this information to the adjuster. All
     problems of this type should be fully explained in the comment section of
     the Appraiser’s Report.
r.   Leased or Rental Vehicle Damage Appraisals:
     Damage appraisals will be completed as previously outlined unless
     specific client instructions request otherwise.
s.   Conditions Inspections:
     A condition appraisal will identify any condition abnormal to a vehicle
     being delivered new. These inspections will include all damaged or
     missing parts. A mechanical inspection including a road test may be a part
     of this inspection.
t.   Heavy Equipment Certification Requirements:
         In order to be certified as a Heavy Equipment Appraiser, an employee
         must complete the following requirements:
                  Have 5 years or more experience in the vehicle material damage
                  appraisal industry.
                  Successfully complete an accredited heavy equipment-training
                  Maintain a quality heavy equipment product, which will be
                  determined by file review. Any heavy equipment appraiser not
                  maintaining an acceptable level of quality will lose his/her
IV.   Ethics
      a. Statement of Principles:
         The procedures set forth herein should serve to standardize Doss and
         Assoiciates appraisal program insure quality control and reflect the desire
         of Doss and Assoiciates to promptly and impartially service its clients.
      b. Appraisal Ethics
         Each associate shall (1) conduct oneself personally and professionally in
         such a manner as to inspire confidence by fair and honorable dealings; (2)
         approach the appraisal of damaged motor vehicles without prejudice
         against or favoritism toward any party involved; (3) disregard any efforts
         on the part of owners, garage personnel, insurance personnel, attorneys, or
         others to influence his appraisals in any way in the interest of parties
         involved; (4) uphold the integrity of Doss and Assoiciates and seek in
         every way consistency with honest policy to enhance its position with the
         public, the insurance industry, and the automotive repair business; (5) in
         every case, an appraisal is to be prepared without the assistance of a pre-
         written shop estimate; (6) at no time is an appraiser to become financially
         involved with a repair facility within their area of responsibility; (7) at no
         time will an appraiser be involved in the purchase of salvage and/or
         become financially involved with a salvage facility.
      c. Doss and Assoiciates personnel are pledged to honest, fair and prompt
         claim disposition. No employee will knowingly engage in unfair claim
         In 1971, The National Association of Insurance Commissioners
         proclaimed a model Unfair Trade practices Act. Most states have
         considered the recommendations of the Model Act, and many have either
         adopted revised versions or passed separate statues adopting some of all of
         the recommendations in the Model Act. It is the responsibility of each
         claims person and branch manager to make certain that he/she is aware of
         all statutes which govern their functioning as a claims person and also to
         be aware of any written orders or regulations by which the state’s
         Commissioners interpret such statues and abide by them.

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