While visiting an ASA member shop in Easthampton this week I was asked how the labor rate on a supplement written in another state should be treated.
Apparently some insurer estimators were changing the labor rate on the supplemental portion to what the carrier would have written in Massachusetts.
It seemed like forever ago that we had that very discussion during several meetings of the Auto Damage Appraisers Licensing Board (ADALB) in the early 2000 era. After doing a little research we found an Advisory ruling from the ADALB that addressed that very issue. It was written by Steve Veiga and dated January 24, 2002.
The ruling states that “”a supplemental appraisal is limited to additional damage parts or damage that could not have been reasonably anticipated at the time of the initial appraisal.”” The words “”limited to”” is very important. It further states that “ “when the initial appraisal has been written in another state with a different labor rate an insurance company appraiser doing a supplemental appraisal request shall not affect the initial appraisal in any material manner”..” Finally it says “the “appraiser must focus only on the additional damaged parts and the damage not reasonably anticipated…”
If you find yourself in a situation when an insurer’s appraiser is trying to change the labor rate on the original estimate portion or supplemental portion of the appraisal then we recommend you print copies of the ADALB Advisory Ruling and show it to the appraiser you are negotiating with. Below is a link to the full Advisory Ruling.
If you have a question or concern about a similar issue or any issue please feel free to contact our staff at ASAMARI.