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| ABAC Code of Ethics
Auto Body Association Of Connecticut Code of Ethics The collision industry and collision repairers have the lives and safety of the motoring public in their hands. Recognizing that consumers typically have no experience with these repairs, they place their trust and confidence in the professional collision repairers to ensure that vehicles are safe and properly repaired. It takes knowledge, skill and expertise to properly repair a damaged motor vehicle. To ensure that consumers receive high quality repairs and to promote consumer confidence in those repairs, collision repairers must conform their practices to ethical standards. Definitions 1. “Auto Body Association of Connecticut” or “ABAC” is an auto repair trade association consisting of qualified members of the collision repair industry with the common purpose of promoting industry excellence and protecting the motoring public. 2. “ABAC Board of Directors” is defined as a board consisting of members of the collision repair industry and members of the Auto Body Association of Connecticut that have met the qualifications to serve as an oversight authority for members of the Auto Body Association of Connecticut and licensed collision repairers in the State of Connecticut. 3. “Collision repair” shall mean any act of disassembling, diagnosing, reconstructing, refinishing, and repairing damaged motor vehicles. Each separate act listed is considered collision repair whether performed singly or in connection with other listed activities. 4. “Collision repairer” shall mean any person or business engaged in collision repair. 5. “Collision repair facility” shall mean any business that receives compensation for the activities of collision repairers. 6. “Consumer” is defined as any individual that has purchased or leased a motor vehicle. 7. “Customer” is defined as the consumer or registered owner of the motor vehicle, or the specifically designated representative of either. 8. “Damage analysis” is defined as the documentation of a thorough review of the damage sustained by a vehicle and the proposed plan to repair the vehicle. 9. “Damage analyst” is defined as any person employed by a collision repair facility technically qualified in the practice of preparing damage analyses, but is not otherwise a collision repairer. 10. “Estimate” is defined as a preliminary identification of vehicle harm and expected repair costs. 11. “Like, kind, and quality”, is defined as used original equipment manufacture parts that are undamaged parts obtained from a motor vehicle of the same manufacture, same year or newer (and same body style if applicable), and from a motor vehicle driven the same number of miles or fewer than the vehicle from which the parts are to be replaced. Due to the potential inherent safety risks associated with such installation, no used motor vehicle suspension, steering, restraint, or safety part may ever be considered as like, kind, and quality. 12. “Parts” is defined as OEM (Original Equipment Manufacture) as defined by the vehicle manufacturer. 13. “Specifically designated representative” is defined as any person who has been given the right to act on behalf of the motor vehicle consumer or registered owner. Unless this person has a familial relationship to the consumer, a person may only be deemed a specifically designated representative upon presentation of an original, duly executed, and notarized power of attorney recognized by the repair facility’s state law as required, as creating a fiduciary relationship between the customer and the representative, which contains language expressly authorizing the representative to act as the consumer’s agent for purposes of collision repair. 14. “Third party” is defined as any person, representative, or organization which is not a party to the repair contract. Auto Body Association of Connecticut Board of Directors The ABAC Board of Directors shall be responsible for regulating and encouraging self-regulation of the collision repair industry as well as encouraging best practices. The ABAC’s Board of Directors shall govern the professional activities of collision repairers, investigate complaints against repairers, and act upon complaints or violations of the ABAC Repair Code of Ethics. The ABAC & ABAC Board of Directors shall work in concert with the State of Connecticut Department of Motor Vehicles, State of Connecticut Attorney General’s office, law enforcement and/or other appropriate state agencies. 1. A requirement for membership to the Auto Body Association of Connecticut is acceptance of and adherence to the ABAC Code of Ethics. Officers and Members of the Board of Directors pledge to support, live by, and cooperate in the enforcement of the ABAC Code of Ethics. 2. The ABAC Board of Directors meets monthly, usually on the first Tuesday of each month. The ABAC Board of Directors shall be responsible for hearing complaints, investigating complaints and imposing sanctions on a collision repairer for violations of the ABAC Code of Ethics. The ABAC reserves the right to request that representatives from the Attorney General’s office, the State of Connecticut Department of Motor Vehicles and/or any other appropriate state or federal entity attend any meeting or hearing involving a complaint or violation of this Code of Ethics. The ABAC also reserves the right to make any such hearing or meeting open to the general membership and/or to the public. 3. ABAC Board Members must have a minimum of five (5) years of collision repair experience before becoming eligible to serve on the Board. 4. Collision repair experience for ABAC Board of Directors and/or ABAC membership means “hands on” experience in a collision repair facility, with proof of ongoing training and industry-recognized certification credentials to verify professional qualifications. 5. ABAC Board of Directors shall have the ability to investigate and review complaints pertaining to workmanship, safety, and any issues governed by this Code of Ethics. 6. In its sole discretion, the ABAC Board of Directors may issue decisions and recommended sanctions to the Department of Motor Vehicles, The Office of the Attorney General, or any other appropriate entity or state or federal agency. 7. ABAC Board of Directors’ decisions may be appealed to the ABAC Appeal Review Panel. All appeals must be filed within thirty (30) days of the date of the issuance of the decision being appealed. The Appeal Review Panel shall consist of at least three (3) ABAC members with equivalent experience of an ABAC Board Member; however, no ABAC Board Member may simultaneously sit on the ABAC Appeal Review Panel and the ABAC Board. 8. The Board should establish rules governing the complaint process, hearing process, appeal process, and sanctions appropriate for misconduct. The Board should also establish rules governing the selection process for Board and Panel membership, provisions for ensuring impartiality of any Board or Panel, and guaranteeing the adequacy of the adjudicatory process. Ethical Considerations 1. Education and Training a) Collision repairers should ensure they have the training, education, certification, and experience to begin undertaking the repair of motor vehicles. This training and certification may consist of:
2) I-CAR training; 3) ASE certification; 4) training provided by internships with collision repair facilities and/or experienced and certified individual collision repairers; 5) training and certification programs offered by motor vehicle manufacturers, equipment manufacturers or paint suppliers; 6) training and/or education programs offered by recognized collision repair organizations; and/or 7) training and/or education programs offered by external organizations whose programs are approved by collision repair organization. c) Collision repairers with substantial experience and demonstrated competency, but no formal education or training, may earn education and training credentials for themselves by participating in the education and training of other repairers. 2. Facility and Equipment Collision repairers should ensure they have the proper facilities and equipment to engage in the safe and appropriate repair of motor vehicles. Collision repairers or repair facilities that do not have specialized equipment necessary for the safe and proper repair of the damage to any given motor vehicle should not undertake such repair. Examples of specialized equipment include, but are not limited to:
b) three dimensional structural measuring devices; c) metal inert gas (MIG) welding and brazing; d) paint booth; e) separate tools and space for aluminum work; and f) tools to repair and weld ultra-hard, boron, or other types of specially formulated steel. Collision repairers are encouraged to join one or more collision repair-related associations. This will assist repairers to share knowledge and expertise, promote the professionalism of the industry, increase the industry’s public presence, and increase public confidence in the collision repair industry. 4. Plain Language The purpose of laws requiring customer consent for the use of particular parts in a repair and for the anticipated cost of repair are to enable those customers to make informed decisions about the repair. Some repair estimates provided to consumers are written in a coded fashion that is similar to a foreign language and not readily understandable by an ordinary person. To better serve customers, is it strongly recommended that any documentation provided to a customer should be written in plain language that is capable of being understood by an ordinary person. This will enable consumers to make truly informed choices about repairs to their motor vehicles. Disciplinary Rules 1. Vehicle Owner is the Customer a) A collision repairer shall always recognize that only the consumer, registered owner, or individual selected by either as a specifically designated representative is the customer. b) Irrespective of any authority conferred by the customer on a specially designated representative, a collision repairer shall not engage in any repair that compromises vehicle safety or activities that interfere with or compromise the repairer’s exercise of professional judgment, as set forth in DR 3. c) A collision repairer owes a duty of professional care to the customer and shall act in the best interests of the customer in all repair decisions and recommendations. Nothing in this section, however, shall be interpreted as prohibiting a repairer from charging for goods and services, collecting for goods and services rendered, including initiating or defending any action permitted by law or equity, or acquiring or enforcing a possessory lien upon a customer’s vehicle. 2. Damage Analysis a) A collision repairer or collision repair facility’s damage analyst must prepare and provide the customer with a written analysis of the damage caused, plan of repair, and as nearly as practicable - the expected cost to repair the vehicle.
2) A collision repair facility must only utilize an estimate or damage analysis for the repair prepared by a person employed by or directly affiliated with the repairer or repair facility for the purpose of engaging in repairs to a vehicle. An estimate or damage analysis prepared by any person not directly affiliated with the repairer or repair facility may be used solely for administrative purposes.1 c) A pattern of preparing a damage analysis that does not include damage reasonably expected to require repair, which substantially exceeds the initial analysis, shall be presumed to be deliberate and unethical.
2) A repairer can rebut the presumption of a pattern of deliberately undervaluing estimates by presenting evidence of the specific circumstances and or complexity involved in each situation that contributed to the undervaluation. Greater weight may be given to evidence rebutting undervaluations involving new or newly altered models of vehicles. 3) Allegations of a pattern of writing undervalued estimates may be submitted to the Peer Review Board for adjudication. A collision repairer or collision repair facility shall exercise professional judgment and utilize repairer’s expertise in all aspects of collision repair. a) On issues of safety, a repairer shall not relinquish professional judgment as to the repairs necessary in favor of any external interest, including the customer’s. b) On non-safety issues, the repairer may only consider the express wishes of the customer in addition to the repairer’s professional judgment in the repair of the vehicle. In the exercise of due care, the repairer has the final determination of the appropriate method of repair or parts to be used in the repair. The repairer, however, has a duty to act in the best interests of the customer. c) The repairer shall always make the final determination of whether an issue is safety-related. d) The repairer shall consider the vehicle manufacturer’s use and repair position statements, and/or recommendations for the repair. If the repairer does not follow the manufacturer’s standards, position statements, and/or recommendations in the repair, the repairer must document and disclose in writing to the customer the reason why the repairer did not follow a manufacturer’s standards, position statements, and/or recommendations existing at the time of repair. 4. Affiliations and Compensation a) A repairer shall have the customer sign an acknowledgement that the customer is responsible for payment of the cost of repairs. b) A repairer may accept payment from a third party on behalf of the customer. However, a collision repairer shall not accept payment from any third party if the payment suggests it compromises any claim, or portion of a claim, on behalf of the customer. c) A repairer shall not agree with any third party to perform repairs for the amount the third party is willing to pay. Only the customer has the right to make the determination of and agree to the type and cost of repair to be performed. d) No collision repair facility repairing vehicles for customers shall be owned by, controlled by, or unduly influenced by any person or entity whose financial interests could interfere with a repairer’s exercise of professional judgment on behalf of, and in the best repair interest of, a customer. Allowing representatives of another company preparing vehicle damage appraisals or estimates of repair to maintain a work location at the collision repair facility is unduly influential. Additionally, ownership of a collision repair facility by an insurer is an “inherent conflict of interest” as set forth in Allstate Ins. Co. v. Abbott, 2006 U.S. Dist. LEXIS 9342 (N.D. Tex., Mar. 9, 2006), affd., 495 F.3d 151 (5th Cir. 2007), cert. denied, 2008 U.S. LEXIS 1297, 76 U.S.L.W. 3439 (U.S. Feb. 19, 2008), and is unduly influential. Nothing in this section shall be interpreted as prohibiting a repairer or repair facility to be “certified” by an original manufacturer of a motor vehicle, or exist as a department within a new car dealership. This section is not intended to prohibit repairers or a repair facility from engaging in normal business relations with product suppliers. It is intended to prohibit actions on the part of the repairer or repair facility from allowing the interests of the product supplier to interfere with the best interests of the customer. 5. Licensure, Registration, and Insurance a) No collision repair facility or individual repairer required by state law to be licensed or registered shall operate or engage in any activities constituting collision repair without being licensed or registered pursuant to the mandates of the state’s law. No collision repair facility or individual repairer shall fail to maintain compliance with the licensure or registration requirements mandated by state law. b) No collision repair facility or individual repairer, if not employed by a repair facility, may undertake the repair of any customer’s motor vehicle for compensation without first acquiring and maintaining in effect a garagekeeper’s and/or garage liability insurance policy. c) A collision repair facility or individual collision repairer shall maintain a minimum of $100,000 of garagekeeper’s and/or $100,000 of garage liability insurance, unless state law requires higher minimum amounts. These limits may be reset by the ABAC Board. d) No collision repair facility or individual repairer may enter into any agreement that requires the repair facility or individual repairer to indemnify the other party relating to a vehicle repair., Nothing in this section, however, shall be construed as prohibiting a repair facility or individual repairer from entering into a contract for vehicle repair with a governmental entity that requires indemnification. 6. Negotiating on Customer’s Behalf Unless authorized by state law, no repairer shall negotiate the repairs necessary or amount to be paid for the repair of a motor vehicle with any person or business other than the customer.2 7. Motor Vehicle Titles as Compensation a) No collision repair business or individual repairer may accept a salvage motor vehicle title from an insurer as payment for any services rendered, unless the collision repair business or individual repairer is licensed as a salvage motor vehicle dealer, salvage parts seller, or salvage yard as defined by state law. b) No collision repair business or individual repairer may accept from an insurer or consumer as payment for any services rendered, any motor vehicle title which the collision repairer knows or should have known was deemed to be a total loss by the insurer. c) No collision repair business or individual repairer may accept from an insurer or consumer as payment for any services rendered, a motor vehicle title for any motor vehicle the repairer reasonably believes in the exercise of professional judgment should have been declared a total loss. 8. Misconduct It is professional misconduct for a collision repairer or collision repair facility to do any of the following in the conduct of collision repair activities: a) violate or attempt to violate the Collision Repair Code of Ethics, knowingly to assist or induce another to do so, or do so through the acts of another; b) commit an illegal act that reflects adversely on the collision repairer or collision repair businesses’ honesty or trustworthiness; c) engage in conduct involving dishonesty, fraud, deceit, or misrepresentation; d) engage in conduct that constitutes “bidding” for collision repair work that is arranged, controlled, or influenced by a third party; e) engage in conduct that involves completion of collision repair work that is initiated by, or results from, a third party’s deliberate dismantling of one or more parts of a motor vehicle3; f) engage in conduct, including a failure to act, that adversely affects the safety of any member of the motoring public, including passengers; g) falsely report that a collision repairer or collision repair facility has engaged in professional misconduct. 9. Reporting Professional Misconduct a) A collision repairer who possesses knowledge of a collision repairer’s or repair facility’s violation of the Collision Repair Code of Ethics shall inform the ABAC Board or other disciplinary authority empowered to investigate or act upon such a violation. b) A collision repairer who possesses knowledge of a collision repairer’s or repair facility’s violation of any state or federal consumer protection statute shall inform a regulatory authority empowered to investigate or act upon such a violation. c) A collision repairer who possesses knowledge of a collision repairer’s or repair facility’s violation of any state or federal vehicle code or safety regulation or statute shall inform a regulatory authority empowered to investigate or act upon such a violation. Amendments This Code of Ethics may be modified or amended upon the agreement of twothirds (2/3) of the ABAC Board of Directors. ------------------------------------------------------------------ 1 Examples of administrative activities include vehicle identification upon delivery, supply ordering, scheduling and resource allocation. 2 Unless expressly required by state law, no repairer shall negotiate the repairs necessary or amount to be paid for the repair of a customer’s motor vehicle with any insurer or insurer’s representative. Negotiating or otherwise compromising a customer’s claim is, or may be construed as, the unauthorized practice of law and is expressly prohibited. 3 This section is not intended to interfere with vehicle restorations, such as those performed for collectors, but is limited to vehicles used for ordinary transportation that have sustained property damage. |
The ABAC
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