CAADE Supplement and Reinspection Procedures 2

Question 1

What is a 'concurrence' in supplement procedures?

Accepted Answer

An agreement between the repair facility and the insurance appraiser on the supplemental items and amounts

Answer

A disagreement between the shop and insurer over repair methods

Answer

A court order to proceed with repairs

Answer

The vehicle owner's written authorization to begin work

Question 2

When a supplement is submitted electronically via an estimating platform, which of the following is typically required to finalize the process?

Accepted Answer

Appraiser review and digital authorization within the system

Answer

A notarized statement from the vehicle owner

Answer

A physical signature on paper from the insurer's field adjuster

Answer

Approval from the state insurance commissioner

Question 3

A repair shop discovers that a vehicle's frame rail is more severely buckled than originally noted. This finding should result in:

Accepted Answer

A supplement that includes additional straightening, sectioning, or replacement labor and materials

Answer

Closing the claim immediately as a total loss without a supplement

Answer

No change to the original estimate since frame damage was already noted

Answer

Contacting the vehicle owner only, bypassing the insurer

Question 4

Which of the following best describes 'parts price adjustments' in a supplement?

Accepted Answer

Correcting part prices that changed between the original estimate and the time of ordering

Answer

Reducing the cost of parts below the insurer's maximum allowable amount

Answer

Replacing OEM parts with aftermarket parts to reduce costs

Answer

Adding a markup above MSRP for rare parts

Question 5

In a supplement, what does 'related damage' mean?

Accepted Answer

Damage that is causally connected to and resulted from the covered loss

Answer

Damage that is older than the current loss event

Answer

Damage that the insurer agrees to cover regardless of cause

Answer

Damage noted in a prior claim on the same vehicle

Question 6

An insurer's appraiser disagrees with a repair shop's supplement on a specific repair operation. What is the appropriate process to resolve this?

Accepted Answer

Both parties review technical references, OEM procedures, and estimating guidelines to reach agreement

Answer

The shop proceeds with repairs and bills the customer for the disputed amount

Answer

The insurer automatically denies the entire supplement

Answer

The vehicle owner must sue the insurer to resolve the dispute

Question 7

What is a 'desk review' in the context of supplement processing?

Accepted Answer

A remote review of the supplement by an appraiser using photos and documentation without visiting the vehicle

Answer

A physical reinspection performed at the repair facility

Answer

A legal review conducted by the insurer's attorney

Answer

An audit of the repair shop's financial records