Anti Fraud Committee

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Anti Fraud Committee

• Collision Industry Conference
• Baltimore, MD
• July 2001

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Mission Statement
Address issues of ethical and professional
business practices within the collision industry
and heighten the level of awareness for all
participants
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Committee Participants

Alex Vencenzi Boyd Dingman Bill
Eveland Bruce Lebow Chad Sulkala Dan
Greenwald Dan Klatt Dick Strom Ed
Dollar Karen Fierst Kathy Forrey Rod
Enlow Mike McCormick
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Co-Chairman Contact

• Gary Wano gwano2_at_swbell.net
• Bob Smith storm-pro_at_worldnet.att.net

• CIClink.com
• Complete listing of contact
• For all committees Particpants

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Old Business

• Guides to Ethical Business Conduct
• Paper has been presented 3 times
• Has been word smithed by the committee
• Has been word Smithed by the body
• The bullets relate to the definitions in brochure
• Over two years of working wording and form
• Acceptance by the body is being asked for

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New Business

• Third party administrators
• Interest has been shown
• Shops have been interviewed
• Insurance contacts need to be interviewed
• Committee will do more research
• How do they add to the Cost shifting problem
• Possible focus at next meeting
• Input from industry

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Cost Shifting

• Definition
• Occurs during the process of writing an auto
  damage appraisal or a final bill for repairs when
  all or some of the cost of one line item is
  transferred to another. This may involve adding
  unnecessary procedures by exaggerating labor
  times/costs in one area of repair to offset costs
  not included elsewhere in the damage appraisal or
  final bill. It may also involve using a less
  expensive part than one listed on the appraisal
  or final bill (or repairing a part that is listed
  as replaced) in order to cover labor times/costs
  or parts not included elsewhere in the appraisal
  or final bill.
• CIC Anti Fraud Booklet Brochure Industry
  consensus definition

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Old but New Term

• Does the word estoppel mean anything to you?
• Estoppel is a legal word that in laymans terms
  means When you have an agreement to perform a
  function or job and you act, starting the job or
  beginning to do what was agreed on the rules
  cannot be changed.
• Peter Bartlett

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DEFINITION

• Estoppel A rule of law that when person A, by
  act or words, gives person B reason to believe a
  certain set of facts upon which person B takes
  action, person A cannot later, to his (or her)
  benefit, deny those facts or say that his (or
  her) earlier act was improper. A 1891 English
  court decision summarized estoppel as "a rule of
  evidence which precludes a person from denying
  the truth of some statement previously made by
  himself".
• Duhaime.org website

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Who, Me Worry

• Why should a repair facility worry
• Why should an adjuster/appraiser worry
• No big deal, right?

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Las Vegas December 2001

• New issues from the CIC body
• Possible further look into third party Admins
• Further development of Estoppel
• Coordination with other committees

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A Parting Thought

• Oh, Great Spirit, grant me the serenity to
  accept the things I cannot change, the courage to
  change the things I can, and the wisdom to know
  the difference.
• Native American Author Unknown

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Thank You

• The members of the Anti Fraud Committee wish to
• Thank everyone for taking time from their
  schedules
• to come and participate in the CIC Forum.

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Remember

• Just do the right thing