State Farm Auto EXAM Questions AND Correct Answers
Certified Crash Related Non-OEM Parts - ✔✔such parts are
subject to certification standards developed by an organization approved by
State
Farm*:
•Bumper
components
•Lighting components
•Radiator supports/tie bars and associated mounting components
•Outer sheet metal and plastic/composite parts
The vehicle owner may request a new non-OEM crash part that is not certified.
In
this situation, we should pay the claim based on the part being utilized
Claims Summary - ✔✔State Farm will pay claims based upon reasonable,
competitive prices for repairs necessary to
repair the vehicle in a quality manner. The policy contract and law of dam
ages will assist us in
determining whether certain operations are payable
Competitive Bids - ✔✔The competitive bid process requires that two or more
repairers submit competitive estimates or
"bids" for a specific repair job. The amount of the low, complete bid is generally
considered to
, be the "competitive" price and is used as the basis for settlement. In all cases,
the vehicle owner
selects the facility that will perform repairs.
Contracts with repairers - ✔✔We do not enter into contracts with repairers on
individual repair jobs on a fixed or "contract"
repair job basis. We pay for the estimated cost of repair based on physical
damage caused as a
result of the loss.
Determining Repair Costs - ✔✔The prices we pay for most repair operations will
be determined from printed or electronic
collision estimating guides and repair facility survey results. However, it is not
possible to
determine the cost of every repair operation from these sources. For example,
when estimating a
sheet metal
or other repair operation, the labor estimate is based on judgment time. When
estimating judgment time, it should follow what is competitive in the local
market to repair the
vehicle in a quality manner.
Estimats are based on - ✔✔Estimates written or approved by
State Farm are based on labor rates and repair costs not to exceed what is
charged by a majority of the repair market in a given area.
Certified Crash Related Non-OEM Parts - ✔✔such parts are
subject to certification standards developed by an organization approved by
State
Farm*:
•Bumper
components
•Lighting components
•Radiator supports/tie bars and associated mounting components
•Outer sheet metal and plastic/composite parts
The vehicle owner may request a new non-OEM crash part that is not certified.
In
this situation, we should pay the claim based on the part being utilized
Claims Summary - ✔✔State Farm will pay claims based upon reasonable,
competitive prices for repairs necessary to
repair the vehicle in a quality manner. The policy contract and law of dam
ages will assist us in
determining whether certain operations are payable
Competitive Bids - ✔✔The competitive bid process requires that two or more
repairers submit competitive estimates or
"bids" for a specific repair job. The amount of the low, complete bid is generally
considered to
, be the "competitive" price and is used as the basis for settlement. In all cases,
the vehicle owner
selects the facility that will perform repairs.
Contracts with repairers - ✔✔We do not enter into contracts with repairers on
individual repair jobs on a fixed or "contract"
repair job basis. We pay for the estimated cost of repair based on physical
damage caused as a
result of the loss.
Determining Repair Costs - ✔✔The prices we pay for most repair operations will
be determined from printed or electronic
collision estimating guides and repair facility survey results. However, it is not
possible to
determine the cost of every repair operation from these sources. For example,
when estimating a
sheet metal
or other repair operation, the labor estimate is based on judgment time. When
estimating judgment time, it should follow what is competitive in the local
market to repair the
vehicle in a quality manner.
Estimats are based on - ✔✔Estimates written or approved by
State Farm are based on labor rates and repair costs not to exceed what is
charged by a majority of the repair market in a given area.
