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Letter to the Editor

Joint Position Statement from Industry Associations in Missouri and Kansas on American Family Audatex Requirement

The following statement has been issued by SCRS MOKAN, AASP of Missouri, and ASA MOKAN, in the states of Kansas and Missouri:

SCRS MOKAN, AASP of Missouri, and ASA MOKAN believe it is in the best interest of the free enterprise system for businesses to be able to transact business as individual decisions dictate. In line with this belief, we recognize American Family Insurance’s desire to select a provider to handle itsr claims process, and to use any automated information system of its choosing.

We find it disturbing that American Family Insurance would choose to require repair facilities to use a specific information provider system, and then change its requirements in the middle of repair facilities’ contracts with the former information provider. Furthermore, no arrangements were made with the new provider to effectuate a system of incorporating those shops that are in contractual arrangements with other providers also at American Family Insurance’s requirement.

It is not the changing of the requirements that is alarming, but the lack of forewarning or concern for the repairer. Also, acceptable business practice would suggest that an immediate change in the middle of an agreement would provide for several options up to and including:

• Adequate warning to the repairer, or arrangements negotiated with the new provider to absorb the existing contracts or phase in the new system
• Allowing the contracts on previously required provider to run their course
• Either the information provider or the insurance company requesting the immediate change to buy out the remaining contracts of repair facilities.

Only after Collision Industry leaders challenged the business practices required by the agreement required between Audatex’s and the repairer, is Audatex re-thinking some provisions that placed burdens on the collision repairer.

SCRS Missouri/Kansas, AASP of Missouri and ASA MOKAN believes that a very unprofessional approach has been taken that is injurious not only to the individual repairers but to the Collision Repair Industry as a whole. It is our belief that business should be conducted in such a professional way so as not to create hardship for either of the parties in an agreement.

For additional information on the associations contact Sheri Hamilton at ASA MOKAN 816-781-5801, Ron Reiling at AASP of Missouri at 636-949-5990, or Bob Smith of SCRS MOKAN at 816.254.9900. Through these three associations the collision repairers of Missouri and Kansas are represented in issues that impact their businesses in a unified professional manner.

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