State Farm Independent Auto Exam: Questions & Answers: Updated A+ Solution

Select Service Program (Ans- In some market areas, repairers have been selected to participate in State Farm's Select Service Program. The program is designed to enhance claim service, increase efficiency, and afford customers an opportunity to select qualified repairers to inspect and estimate vehicle damage Paintless Dent repair (Ans- Paintless Dent Repair (PDR) is an industry recognized repair process that involves the removal of hail dents or other types of damage from metal exterior surface panels without disturbing the vehicle's finish. In most cases, this procedure involves the use of specialized tools to apply pressure to the backside of the panel to remove surface imperfections. Other techniques may be used to repair damage from the topside of the panel, depending on the size and location of the damage. By using either of these techniques, the technician is able to restore panel appearance which eliminates the need for refinishing the panel's surface area. The PDR process is often used to repair hail damage or other similar dents that occur when an outer panel strikes (or is struck by) an object that has not compromised the finish of the panel. Since the outer finish of the panel has not been disturbed, it eliminates the refinishing process and may allow for repairs to be completed in a more timely and cost effective manner. Determining Repair Costs (Ans- 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 (Ans- 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. Contracts with repairers (Ans- 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. Freight Charges (Ans- Similarly, if freight charges are submitted to State Farm for payment, payment should normally be resisted. Freight charges are not considered as part of actual repair costs and are generally aligned with an expense a repairer or dealership may incur as a result of operating the repair facility business. If a circumstance arises that may warrant additional consideration, local management should contact their assigned Estimatics consultant. Minimum Cost (Ans- Establishing minimum costs or authority levels can provide a realistic measure of repair costs for items such as the number of hours allowed for a complete refinish job, material costs, or similar items. Publication of survey information (Ans- We will not knowingly violate that confidentiality by publicizing individual survey data to persons outside our organization Claims Summary (Ans- 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 damages will assist us in determining whether certain operations are payable Non original equipment and recycled parts (Ans- State Farm promises satisfaction to the vehicle owner when new non-original equipment and/or recycled parts are specified on an estimate that is written or approved by State Farm or a Select Service repair facility. The State Farm promise of satisfaction relative to non-original equipment or recycled parts does not replace any quality or warranty provisions we require from repairers, non-original equipment, or recycled part suppliers. The State Farm promise of satisfaction for non-original equipment and recycled parts extends to fit, corrosion resistance, and performance qualities Non-OEM (Ans- Non-Original Equipment Manufacturer OEM Quality (Ans- Used, rebuilt, or reconditioned parts must be of sufficient quality relative to the part being replaced Certified Crash Related Non-OEM Parts (Ans- 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 Non-OEM Delay (Ans- No unusual delay must occur as a result of considering non-original equipment and/or recycled parts for use in repairs If Non-OEM and Recycled parts are used in estimates (Ans- The vehicle owner should be notified when the prices of non-original equipment and/or recycled parts are included in the estimate as outlined in CPG 2700-275 If The non-OEM part is included on the list of suspended parts and not requested by the vehicle owner (Ans- The estimate should not include such part (Part Does not have to be certified) (page 22)