PCTG Consumer Complaint Report Record ID#: 2041417517

November 29, 2007 Pennsylvania Department of Insurance 1341 Strawberry Square Harrisburg, PA 17120 Re: State Farm Insurance Company - Unsafe Claim Practices On behalf of our consumer, our facility is in dispute with State Farm Insurance Company regarding the use of reconditioned wheels and unibody / frame analysis. Our consumer's 2003 Nissan 350Z sustained serious accident damages to its front end. State Farm assigned staff appraiser Mr. George Galczynski to inspect the claim and prepare an appraisal of damages. Included in State Farm's appraisal are replacement wheels that have been reconditioned. We advised Mr. Galczynski the wheels included did not meet the state guidelines for replacement parts and would not meet the original manufacturer's guidelines to repair our consumer's vehicle to the manufacturer's standards. Also included with State Farm's appraisal is a line item for 2.0 hour COLLISION PULL however, State Farm will not allow for unibody set-up and measurement labor which is necessary for a proper analysis of damages.' Law Title 63, Chapter 22B (b) The appraiser shall leave a legible copy of his appraisal with that of the repair shop selected by the consumer to make the repairs and also furnish a copy to the owner of the vehicle. This appraisal shall contain the name of the insurance company ordering it, if any, the insurance file number, the number of the appraiser's license and the proper identification number of the vehicle being inspected. All unrelated or old damage should be clearly indicated on the appraisal which shall include an itemized listing of all damages, specifying those parts to be replaced or repaired. Because an appraiser is charged with a high degree of regard for the public safety, the operational safety of the vehicle shall be paramount in considering the specification of new parts. This consideration is vitally important where the parts involved pertain to the drive train, steering gear, suspension units, brake system or tires. Regulation Pa Code Title 31, Chapter 62 9) The location where the listed parts are available in a condition equivalent to, or better than, the condition of the replaced parts prior to the accident. 10) If the appraisal includes aftermarket crash parts, a statement that the appraisal has been prepared based on the use of aftermarket crash parts, and that if the use of an aftermarket crash part voids the existing warranty on the part being replaced or any other part, the aftermarket crash part shall have a warranty equal to or better than the remainder of the existing warranty. § 62.3. Applicable standards for appraisal. (5) A description of repairs, known at the time of appraisal, necessary to return the vehicle to its predamaged condition, including labor involved, cost of all parts, necessary painting or refinishing and all sublet work to be done. While representing our consumer we reviewed the State Farm appraisal and advised Mr. Galczynski of the safety concerns and non-warranted status of reconditioned wheels. We requested State Farm to utilize proper parts for the repair process however Mr. Galczynski stated that if the wheels are available in the marketplace his estimating guidelines are to use them on his appraisal. Mr. Galczynski stated "everyone else uses them" and he does not understand the problem with our company's refusal of reconditioned wheels. We advised State Farm we could not warrant the usage of unsafe wheels however Mr. Galczynski advised State Farm will in fact warrant the wheels. I explained that State Farm does not guarantee or warrant any part replacement or repairs utilized by Crawford's Auto Center, Inc. nor does our facility have a contractual relationship with State Farm Insurance Company placing us under any obligation to force our consumers to accept unsafe parts and repairs. Utilizing wheels that have been damaged in automobile accidents, then modified to appear cosmetically acceptable and returned to the marketplace may create an unsafe repair and potential liability situation for our consumers and / or our company. The matter of frame damage and State Farms refusal to reimburse diagnosis labor creates another compliance issue as it is a necessary repair process to analyze and measure frame and unibody damages prior to the actual repairing process. State Farm denies reimbursement for the diagnosis process by refusing to acknowledge the requirement on their appraisal. Not identifying an appraisal line item for the actual cost to cover the labor procedure is a violation of state appraisal requirements.' On our consumer's behalf we have contacted State Farm Insurance Company to inspect and reimburse our consumer for safe replacement parts and repairs. State Farm has sent Mr. Galczynski to our facility on three separate occasions however the insurance company has refused stating they will guarantee the parts and repairs. We requested State Farm Insurance Company to provide our consumer with a written statement that supports their position on reconditioned wheels and frame analysis and they have refused. We have no other choice but to request the PA Department of Insurance to intervene and demand State Farm Insurance Company act responsibly and reimburse for safe auto parts replacement and repair procedures. This situation with State Farm has taken place over the past several months and has interfered with the normal repair process moving forward in a professional manner. In fact, the repairs are delayed indefinitely until a dispute resolution is agreed upon.'' Thank you very much, Stephen Behrndt Crawford's Auto Center, Inc.