the Nebraska Autobody Association Newsletters

January 2007

Nebraska Insurance Commissioner To Address Norfolk Area Repairers	L. Tim Wagner, the Nebraska Insurance Director will speak with Madison County body shop owners on February 16, 2007. The historic meeting was agreed to after Norfolk shops met with Sen. Mike Flood to express concerns over certain insurance industry claims settlement practices.
Nebraska Could Become Testing Ground For Independent Market Analysis	An informational meeting for an independent Market Analysis and Labor Rate Validation study will be presented to Norfolk area shops on 6:30 p.m. on February 1, 2007 at Prenger's Restaurant. The nine-part survey was designed to benchmark a number of economic factors that affect the collision repair industry in order to provide precise market snapshots coupled with emerging business trends. The survey consists of over 170 questions that gauge factors such as cycle time, cost controls, claims settlement trends, new vehicle technology, shop income/expense trends, labor rates, parts markups and others. Representatives of the Nebraska Department of Insurance have been invited to attend the informational meeting. (Note: This independent project is not endorsed or promoted by NABA or by any other association or entity).
Nebraska Autobody Association Plans Historic Convention	The Nebraska Autobody Association is gearing up for its historic 30th Anniversary Convention & Expo to be held on April 13-14 at the Interstate Holiday Inn in Grand Island. Don't miss this chance to revisit with friends, share memories and attend some great programs and events. Complete attendee and exhibitor information is availableat the NABA web site at http://www.nebraskaautobody.com
Nebraska Autobody Association Establishes 2007 Legislative Information Page	The historic 2007 Nebraska legislative session is in full swing and a number of bills have been introduced that may impact your business. The Nebraska Autobody Association has established a web page with links to help you stay updated and become involved in the legislative process. From the NABA page you can sign up for the Unicmeral Bill Tracker to receive email reports of the status of any bill of interest or use the committee hearing schedule to find out when bills are scheduled for public hearings. Other information on the NABA web page include a 2007 session calendar; 2007 potentially relevant bills; 2007 senator contact information; Nebraska Unicameral bill finder; unicameral committee hearing schedule and a list of committees. You can access the NABA 2007 legislative information page at http://www.nebraskaautobody.com
Next Industry Webcas	CREW seminars are designed to give repair service providers, automobile physical damage claims managers and other industry vendors, partners and constituents with high-level, current information about the rapidly changing industry from the convenience of your home or office. The next Crew Webcast will be held on Thursday, January 25, 2007 from 11:00 AM - 12:00 PM PST. You can reserve your Webinar seat now at: https://www.gotomeeting.com/register/669676585
Online Claims Processing Trends	India's largest general insurer New India Assurance today said it has joined with global motor claim solutions provider Audatex for on-line processing of claims. The joining will help New India Assurance in faster processing of motor claims and reduce administration costs, a company release said. The Audatex system allows the insurer to approve claims within a couple of hours after filing.
Three National Collision Industry Associations Join Towards One Goal	The Alliance of Automotive Service Professionals (AASP), the Automotive Service Association (ASA) and the Society of Collision Repair Specialists (SCRS) joined to examine and improve the data in leading industry estimating systems. The project is titled the Database Enhancement Gateway (DEG) and goals include the development of an industry Web site that would allow collision repair professionals to file requests for reviews of the various estimating systems and view the responses from the information provider(s) once available. The DEG project will be administered by a paid, full-time administrator with oversight by a committee created by AASP, ASA and SCRS.

Prevailing Rate Dispute Lands In Court

Two class-action lawsuits with major implications for body shops have been filed in California against USAA, AAA, Allstate, Progressive, Geico and Farmers." The suit challenging the basis upon which
insurers require policyholders to pay out-of-pocket for choosing body shops that charge more than what the insurer claims is the prevailing labor rate. The suit, Barbara Hinman v. California State Insurance
Association Inter-Insurance Bureau claims that Hinman exercised her right to choose a body shop and the shop charged $88.00 per hour labor. Her insurer refused to pay more than what it claimed was the
prevailing rate of $68.00. Hinman paid the difference out of pocket. "We have filed suits on behalf of the policyholders who have been told by their insurance companies that they have to pay out of
their own pocket for part of the costs to repair their car. The insurance companies say they don't have to pay the hourly labor rates charged by the body shops. The body shops say their rates are reasonable, and the insurance companies have no reasonable basis for negotiating a lower rate. The consumers, the policyholders, are caught in the middle," read a statement prepared by the plaintiff's
attorneys.

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