CAADE Automotive Industry Standards & Practices 3 — Questions and Answers
Question 1: What is the purpose of a 'sublet' operation on a damage estimate?
- Work performed by the estimator that is billed separately
- Work sent to a specialized outside vendor and billed to the repair facility (Correct answer)
- Parts sourced from a salvage yard
- Additional hidden damage found after teardown
Correct answer: Work sent to a specialized outside vendor and billed to the repair facility
A sublet is work outsourced to an outside vendor (e.g., glass shop, frame straightening specialist, upholstery shop) whose charges are passed through on the estimate.
Question 2: According to standard industry practice, what is 'diminished value' in automotive appraisal?
- Reduction in value due to high mileage
- Loss in market value a vehicle suffers after being repaired from accident damage (Correct answer)
- Depreciation calculated over the vehicle's useful life
- Reduction in value due to deferred maintenance
Correct answer: Loss in market value a vehicle suffers after being repaired from accident damage
Diminished value refers to the reduction in a vehicle's market value that persists even after a proper repair, because the vehicle's accident history negatively affects buyer perception.
Question 3: What is the 'blend' operation in auto refinishing, and when is it typically allowed?
- Mixing two paint colors to create a custom shade
- Feathering new paint into adjacent panels to achieve a color match (Correct answer)
- Applying a clear coat over a base coat
- Removing overspray from a neighboring panel
Correct answer: Feathering new paint into adjacent panels to achieve a color match
Blending involves extending new paint into an adjacent panel to achieve an imperceptible color match, and is allowed when a direct match cannot be guaranteed on the repaired panel alone.
Question 4: Under the ASE certification system, which designation specifically covers collision repair estimating?
- ASE B2
- ASE B5
- ASE B6 (Correct answer)
- ASE P2
Correct answer: ASE B6
ASE B6 is the certification specifically designed for damage analysis and estimating in the collision repair field.
Question 5: What is a 'betterment' charge in an insurance repair context?
- A fee for using OEM parts instead of aftermarket
- A deduction applied when new parts improve a vehicle beyond its pre-loss condition (Correct answer)
- An additional charge for repairing pre-existing unrelated damage
- A surcharge for hazardous material disposal
Correct answer: A deduction applied when new parts improve a vehicle beyond its pre-loss condition
Betterment is a deduction insurers apply when replacement parts (such as new tires or a new battery) leave the vehicle in better condition than it was before the loss.
Question 6: Which paint formula system uses alphanumeric codes stamped on the vehicle (often on the door jamb sticker) to identify the exact color?
- Pantone Color Matching System
- OEM color code system (Correct answer)
- RGB digital color spectrum
- Munsell color notation
Correct answer: OEM color code system
Vehicle manufacturers assign unique alphanumeric OEM color codes (e.g., NH-578 for Honda Taffeta White) that paint suppliers use to mix an exact formula match.
Question 7: In a standard auto damage appraisal, what does 'R&I' stand for?
- Repair and Inspect
- Remove and Install (Correct answer)
- Replace and Inspect
- Restore and Improve
Correct answer: Remove and Install
R&I (Remove and Install) refers to removing an undamaged part to access a damaged area and then reinstalling the same part after repair — no replacement occurs.
CAADE Automotive Industry Standards & Practices 3
What is the purpose of a 'sublet' operation on a damage estimate?