FMS Assignment Diary
Automated Appraisal
Two (2) photos, color 35MM or digital color as available
FMS Condition Report - listing any old damages
Office charge
Local phone calls
Mileage within a 25 mile radius (50 miles total)
Driving time within a 25 mile radius (50 miles total)
Two salvage bids
NADA, Red or Blue Book value

. Client will be notified by PDA franchisee prior to an inspection being made outside of the client procedure radius.
. Agreement will take effect seven (7) days after inception date. This will allow proper distribution to ensure compliance with the procedures outlined in this agreement.
. All client procedure agreements will be reviewed: After first ninety days (90) days, then annually unless requested by the client or PDA.
. All professional service fees are due upon receipt unless requested by the client or PDA.
. PDA's goal is for all files to meet a 24 hour contact, 48 hour inspection, and 72 hour turnaround time. If this does not occur, an explanation (FMS Status Report) will be provided to the client.

Contact with insured/claimant within 24 hours of assignment. If unable to make contact within 72 hours, client adjuster notified.

. Vehicle Inspection/48 Hours

Report includes date, location of inspection, complete VIN, license number, condition report including any unrelated damage, repairs and/or parts replacements listed will be made in strict accordance with the manufacturer's specifications and recommendations.

. Turnaround of Complete File/72 Hours

PDA's complete, final closed file, including PDA's service invoice, will be mailed to client within 72 hours of assignment date. If this does not occur, a status report explaining the facts and circumstances will be forwarded to the client every 72 hours until the assignment is completed.

Color 35MM or Color digital photos will be provided on all assignments and will clearly depict damage indicated on appraisal. A brief description for each photo will be made on the photo mount sheet. Where damage is not clearly shown in photos, notation in the file summary will be made.

Where ever possible, exchange bumpers (chrome and material) and bumper reinforcements will be utilized.

Where ever possible, sectioning or repaneling procedures, as opposed to complete replacement operations, will be utilized.

Front-end corrections will be allowed only in those cases where there is obvious or related damage to the frame, suspension, wheels or the steering apparatus. If an alignment is allowed on the appraisal without the indication of one of the above being damaged, a detailed explanation will be included in the file summary as to why the alignment was allowed.

Where ever possible, LKQ replacement parts will be utilized in repairs and/or replacement of nonfunctional sheet metal parts on all model vehicles. Where LKQ parts are not available this will be noted on the FMS Condition Report/FMS Total Loss Report.

Accurate time allowances will be established (in hours) on all items to be repaired or replaced, and overlap or included operations will be removed; this also applies to paint times.

Recommended depreciation will be shown on: 1) paint 2) tires 3) batteries 4) roof coverings 5) electrical items 6) engine components 7) exhaust components 8) floor coverings 9) interior upholstery 10) shock absorbers 11) sound equipment 12) transmissions & any other items that the appraiser feels are applicable.

Whenever possible, outside specialty shops (glass shops, trim shops, vinyl top replacement centers) will be utilized. Glass prices based on flat rate and NAGS will not be acceptable unless they are competitive with area glass companies. All sublet items will be indicated on the appraisal including the name and telephone number of the facility.

The following items will be clearly shown: (1) the repair facility's labor rate being applied; (2) the parts discounts being allowed; (3) the local tax rate and to what sum of money it is being applied; (4) all towing and storage bills will be verified and copies will be obtained for the adjuster.

Other than parts price increases, additional damage will be verified by actual inspection. During second shop visit, appraiser will determine whether all items allowed for replacement on original estimate have in fact been replaced. A copy of the parts invoice will accompany all supplements involving parts price increases. If photos are necessary to document supplement, they will be provided.

All appraisals will be agreed with a reputable body shop in the area, preferably a shop of the owner's choice. Any honest element of doubt concerning an appraisal item should be indicated on the appraisal showing the amount and an explanation of the circumstances. When a dispute cannot be reasonably resolved, it may be necessary to secure an agreed price with another reputable shop and relay this information to the staff adjuster immediately by phone.

Under no circumstance will authorization be given to a shop to make repairs or to disassemble a unit. The owner must authorize repair or disassembly at the shop of his/her choice.

Client will receive an FMS Assignment Diary, FMS Condition Report or FMS Total Loss Evaluation, agreed price appraisal and photos on all losses. One copy of the appraisal will be provided to the insured/claimant or repair facility. Vehicle owner will be informed that the appraisal is subject to approval of the claims adjuster.

An FMS Automated Condition Report will be provided on all repairable vehicles, this report will include: (1) mileage; (2) all vehicle equipment, standard or optional; (3) condition of paint and interior; (4) tire tread depth including spare; (5) unrelated damage, excessive wear and tear, rust or other reconditioning necessary.

On all total losses, a detailed FMS Total Loss Evaluation including: (1) mileage; (2) all vehicle equipment, standard or optional; (3) condition of paint and interior; (4) tire tread depth including the spare; (5) unrelated damage, excessive wear and tear, rust or other reconditioning necessary will be made to substantiate the actual cash value of the vehicle. Appraisals are required on all total losses to the point of ACV.

On all total losses, the exact location of the salvage, including telephone numbers and daily storage rates, will be included.

Call client about any unusual circumstances and/or for clarification of instructions.

Compliance with all local and state regulations will be adhered to.

FF REVISED 04-29-97