Anti Fraud Committee

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Anti Fraud Committee

• Dallas Texas
• December2002

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Committee Members

• Chuck Sulkala
• Repairer
• Ed Dollar
• ACA
• Rod Enlow
• Insurance

• Jeannie Silver
• Repairer
• Dick Strom
• Repairer
• Chad Sulkala
• Repairer
• Dan Klatt
• Repairer

Wayne Marston Independent Appraiser Ed
Cobett Repairer Karen Fierst Consultant
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Co-Chairs

• Gary Wano
• Phone [phone]
• Fax [phone]
• email gwano2_at_swbell.net
• Bob Smith
• Phone [phone]
• Fax [phone]
• email storm-pro_at_worldnet.att.net
• www.ciclink.com

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Last Meeting

• Examples of everyday occurrences
• Things not necessarily outright fraud
• Things which could be perceived to be
• less than ideal business practices
• Avoidance

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Committees Charter

• One of the things we were chartered
• with, over nine years ago, was to bring
• an increased awareness to the industry

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Todays Topic

• Cost Containment
• OR

• Quality Containment

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Things Reported

• We dont pay for
• Dont write everythingthey may not fix
• Dont write everythingits slowthey wont
  call
• I got an estimate with a parts discount
• We have audited your estimateand we will pay..
• You should have had the unit out inpay the
  rental
• I had to show the appraiserdid not know
• My alternate parts have to beregardless
• I am the only one

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We dont pay for

• Flex agent
• RI
• Blend
• Full paint time on minor damage

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Dont Write Everything

• Rationalizations
• They may not have it fixedwe dont owe for it
• But if a shop asks, go ahead and pay for it
• They may be slow enough they wont ask for it
• If they ask pay for it
• Write it short(DRP), if they bring it back to
  fix, supplement it

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Discounts

• Estimate sent back with parts discount
• When I called, it was taken off
• we ARE taking parts discounts

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You Have the Job, BUT

• Ouraudit shows . . . . .
• We are from XYZ and we audited your estimate for
  X Co.

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Sample of Reports Recd.

• We can/are recommending to XYZ Company
• You could have usedparts
• You should have taken betterment on
• We are allowing x days of rental

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Rental Vehicles

• You should have had the car out in X days
• You should not have scheduled car then
• We dont pay for express freight or overnight

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Show Tell

• Age old problem of quality work force
• If person does not know they cannot write
• Not isolated to any one segment
• Every segment bears a responsibility
• We, as an industry, must have qualified personnel
• At all levels

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Alternative Parts

• Measure by frequency
• Measure by total dollars
• Inequity in using dollars

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YOU ARE THE ONLY ONE

• Has been around since beginning of time
• Maybe that person should be rewarded
• If you dont, Joe will

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Common Thread!

• None are good business practices
• None follow the Guidelines CIC has published
• Some may not follow policy language
• Other potential legal violations
• Some qualify as unfair claims practices
• Some could be outright fraud
• All promote/require Cost Shifting

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Summary

• These are things that have been reported to us
• Documentation
• Been here before
• Do we really want to go there again?
• Not here to judge, it is always a business
  decision

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Parting Thought

• Always do the right thing.
• This will gratify some people and astonish the
  rest
• Mark Twain