RECOMMENDED VENDOR MANUAL - Travelers Canada Dominion Recommended Vendor Manual – Collision Repair Facilities (06/2010) 4 THE DOMINION OF CANADA GENERAL INSURANCE COMPANY The Dominion

RECOMMENDED VENDOR MANUAL

COLLISION REPAIR FACILITIES

The Dominion Recommended Vendor Manual – Collision Repair Facilities (06/2010) 2

THE DOMINION OF CANADA GENERAL INSURANCE COMPANY RECOMMENDED VENDOR MANUAL – COLLISION REPAIR FACILITIES

Field Inspection Report – Collision Repair Facilities .................................................................... 4 Inspection Rating Report – Collision Repair Facilities ................................................................. 8 Field Inspection Report – Definitions For Rating Categories ....................................................... 9

• Location • Building Exterior • Customer Reception Area • Appraiser’s Work Area • Production Area

Vendor Agreement – Collision Repair Facilities ........................................................................... 15

• Representations and Warranties • Shop Appearance, Equipment and Software • Covenants and Additional Agreements • Inspection and records • The Dominion – No Representations • Term and termination • The Dominion’s Intellectual Property • General Provisions • Privacy Terms of Agreement • Schedule “A” – Estimating Performance Guidelines • Schedule “B” – Labour and Material Rates

Standards of Business Conduct ..................................................................................................... 23

• Introduction • Standards of Service • Conflict of Interest • Personal Standards • Conclusion

Appraiser’s Code of Conduct ....................................................................................................... 26

• Introduction • Code of Conduct • Qualifications and Competency • Duties and Responsibilities

Appraisal Procedures ................................................................................................................... 30

• General • Administration Information • Vehicle Information • Repair Facility • Damages • Time to Repair • Total Losses • Estimated Salvage Returns • Stolen & Recovered Vehicles – Unsettled Claims


Estimating Standards .................................................................................................................... 35 • Original Equipment Manufacturer (OEM) Parts • Like Kind and Quality (LKQ) Parts • Non-OEM (Aftermarket) Parts • Re-Manufactured Parts

Depreciation / Betterment Guidelines ........................................................................................... 37 Dominion Recommended Vendor Folders .................................................................................... 38 Appendix A Contact Numbers at The Dominion ....................................................................... 39 Appendix B The Dominion Recommended Shop Guide (01/2010) ........................................... 40


THE DOMINION OF CANADA GENERAL INSURANCE COMPANY

The Dominion Recommended Vendor Program Field Inspection Report – Collision Repair Facilities

Shop Name: ____________________________________________________ Address: _________________________________________________ City, Prov., P. Code: ___________________________ _________ _________ Main Intersection: _________________________________ Telephone #: ( ____ ) ________________ Fax #: ( ____ ) ________________ E-mail: _________________________________ Web site: _________________________________ Shop Contact: _________________________________ Programme Administrator: _________________________________ Type of Facility: Independent Dealer ____________________ Franchise ____________________ Years in Business: _______ yr. At this location: _______ yr. Business insured with: _________________________________ Broker: _________________________________ If The Dominion, policy #: _____________________ Effective dates: _________ to __________ General Comments: __________________________________________________ __________________________________________________ __________________________________________________


Employees: Office staff (excluding estimators) # ________ Estimators (excluding office staff) # ________ Licensed Bodymen # ________ Apprentice Bodymen # ________ Painters # ________ Painter’s Helper # ________ General Labourers # ________ TOTAL STAFF # ________ I-CAR Training: Ongoing Training: Yes No Gold Class: Yes No Welding Certificate: Yes No Computer estimating System(s): Yes No Audatex Mitchell Other ________________ Waterborne Base Coat Conversion: Yes No Date of conversion: ________________ Paint Supplier: Akzo Nobel BASF Dupont PPG Sherwin Williams Other ________________ Storage Compound: Yes No Approximate # of cars: ________ Fenced and locked: Yes No 24 hour accessibility Yes No


24 Hour Towing: Own Sublet _____________ Production Area: Approximate size: __________ Sq. Ft. Number of body stalls: __________ Number of prep stalls: __________ Equipment: Spray Booth: Down draught Cross draught Combination Make: _______________________ Model: _______________________ (2nd unit if applicable) Down draught Cross draught Combination Make: _______________________ Model: _______________________ Vacuum Prep Station: Yes No Make: _______________________ Model: _______________________ Frame System: Yes No Make: _______________________ Model: _______________________ (2nd unit if applicable) Make: _______________________ Model: _______________________ Measuring system: Yes No Make: ______________________ Model: ______________________ (2nd unit if applicable) Make: ______________________ Model: ______________________


Mig welder: Yes No # ______ Arc welder: Yes No # ______ Gas welder: Yes No # ______ Plazma cutter: Yes No # ______ Hydraulic Hoist: Yes No # ______ GUARANTEES: Labour: Lifetime Yes No ________ yr. Paint: Lifetime Yes No ________ yr. LABOUR RATES: Posted Insurance Labour: Frame $ ________ / hr. $ ________ / hr. Body $ ________ / hr. $ ________ / hr. Paint $ ________ / hr. $ ________ / hr. Mechanical $ ________ / hr. $ ________ / hr. Materials: Body $ ________ / hr. $ ________ / hr.

Paint $ ________ / pt hr.$ ________ / pt hr. Hazardous $ ________ / est. $ ________ / est. Overall Comments: ___________________________________________________ ___________________________________________________ ___________________________________________________ ___________________________________________________ Inspection Completed by: _______________________________ _______________________________ Date: ________________


INSPECTION RATING REPORT – COLLISION REPAIR FACILITIES The Dominion Recommended Vendor Program Shop Name (location):

Excellent Very Good Good Poor SHOP LOCATION

Accessibility BUILDING EXTERIOR

Overall appearance Exterior signing Parking area Lighting Building entrance Compound CUSTOMER RECEPTION AREA: Overall appearance Condition of furniture Customer washrooms No parts, paint or supplies visible No distasteful signs, pictures, etc visible Office personnel neatly attired APPRAISER’S WORK AREA: Separate, private Amenities (desk, telephone, etc.) Reference materials (manuals, red Book etc) Inside inspection bay PRODUCTION AREA: Overall layout Floors clean, swept Tools & supplies in proper location Parts storage area Separate paint mixing & storage area No distasteful pictures, calendars etc visible Shop personnel neatly attired

Totals RATING:

Total Points (out of 96) Excellent 4 points Rating % Very Good 3 points

Good 2 points Poor 1 point

Prepared by:

Date:


FIELD INSPECTION REPORT - DEFINITIONS FOR RATING CATEGORIES

SHOP LOCATION: Accessibility

Excellent Location of shop is on a major street or artery, directions are very straight forward and shop is very easy to find.

Very Good Shop located on a secondary street off of a main intersection or

artery, directions are still fairly straight forward and shop is relatively easy to find.

Good Shop located on feeder street to a secondary street or on a

residential side street. Directions are more complicated and shop is somewhat difficult to find.

Poor Shop is not readily accessible and directions complicated.

BUILDING EXTERIOR: Overall Appearance

Excellent Exterior is clean, well kept, up-to-date, modern, landscaped.

Very Good Needs some minor work to achieve Excellent rating.

Good Needs major work to achieve Excellent rating.

Poor Non-professional, very uninviting, requires major overhaul. Exterior Signing

Excellent Modern, easily visible, well-lit signage, recognizable from either

direction.

Very Good Modern, easily visible signage but not illuminated at night, recognizable from either direction.

Good Signage is present but unlit and not easily visible from both

directions.

Poor Signage, if present at all, is unlit and difficult to see as approaching the shop.

Parking area

Excellent Paved, clean, marked (lined) lot. An abundance of space with clearly

defined areas for customer parking. There is no evidence of employee vehicles or total losses visible.

Very Good Clean, spacious lot but there are no specifically defined areas for

customer parking. The presence of employee or total loss vehicles


would also downgrade an otherwise Excellent rating to Very Good or lower.

Good Clean lot, but limited customer parking as well as evidence of

employee or total loss vehicles.

Poor Parking lot is generally untidy and congested making it difficult for a customer to find somewhere to park reasonably close to the entrance.

Exterior Lighting

Excellent All exterior areas including entrances, parking lot and storage

facilities are well lit.

Very Good Exterior lighting available for 2 of 3 areas listed above, one of which must be the front entrance.

Good Exterior lighting is limited to the front entrance.

Poor No exterior lighting evident.

Customer Entrance

Excellent Customer entrance is clearly marked, easily accessible and close to

customer parking. In addition, there is an after-hours drop box.

Very Good Entrance clearly marked, easily accessible and close to customer parking but lacks after-hours drop box.

Good Entrance to the office is not clearly marked or near to customer

parking area.

Poor The repair facility / office is not at the main entrance to the facility or close to the customer parking. Consequently, a customer not familiar with the shop may be confused as to where to go.

Storage Compound

Excellent Outdoor storage compound is fenced, lockable, paved and well

organized.

Very Good Storage compound is fenced, lockable, well organized but is unpaved.

Good Fenced and lockable storage area but access to vehicles is limited

due to poor organization.

Poor Outdoor storage area is unfenced or non-existent.


CUSTOMER RECEPTION AREA: Overall Appearance

Excellent Clean, neat, bright, and spacious with a defined sitting area for customers. May also have complimentary coffee and magazines available for customers.

Very Good Clean, neat and bright, but limited customer seating. Good Reception area is clean but has no defined customer sitting area.

Poor Reception area is untidy and unappealing.

Condition of Furniture

Excellent Modern, furniture is in excellent or new condition.

Very Good Modern, furniture is slightly worn.

Good Modern, furniture is beginning to show signs of advanced wear.

Poor Furniture is showing signs of advanced wear and should be repaired or replaced.

Customer Washrooms

Excellent Used by office staff and customers only. Located in the reception area. Separate washrooms for both men and ladies. Facilities were clean and tidy at the time of inspection.

Very Good Used by office staff and customers only. Located in the reception

area. Single washroom for both men and ladies. Facilities were clean and tidy at the time of inspection.

Good Separate washroom(s) for office staff and customers only located in

the reception area but somewhat untidy at time of inspection. Poor There are no separate facilities for customers and or they are not

conveniently located. Facilities found to be dirty or in need of a major facelift would also fall into this category.

No Parts, Paints or Supplies Visible

Excellent No parts, paint or other supplies visible. Very Good One or two small parts/paints/supplies visible, causing no

impedance.

Good A limited number of parts/paints/supplies visible, causing the reception area to look somewhat cluttered.

Poor There are numerous parts/supplies/paints visible, resulting in the

reception area looking very cluttered and/or causing there to be impedance to the normal traffic flow.


No distasteful photos, calendars, signs visible

Excellent None visible (zero tolerance).

Poor Visible to some degree.

Office personnel neatly attired

Excellent Business wear or uniforms.

Very Good Business casual wear. Good Casual wear.

Poor Leisurewear, jeans, overalls or dirty/untidy appearance.

APPRAISER’S WORK AREA: Separate, Private

Excellent Separate area assigned for use by insurance staff appraisers or

independent appraisers only. Area is clean and tidy.

Very Good Separate area assigned for use by insurance and staff appraisers but untidy and cluttered.

Good Area shared with office staff. Area is clean and tidy.

Poor Area shared with office staff. Area is untidy and cluttered.

Amenities

Excellent Desk, calculator, telephone and dedicated modem line available.

Very Good Similar to above, but no dedicated modem line available.

Good Only one of above available.

Poor Desk, telephone or modem line not available.

Reference Materials

Excellent Shop has access to the appropriate reference material to determine if

a vehicle is a total loss and to calculate an approximate A.C.V. Also has access to parts pricing, frame measurements and a computer estimating system(s). Shop also has access to the Internet.

Very Good Shop has the above mentioned reference materials but lacks Internet

access.

Poor Shop does not have the appropriate reference materials or access to the Internet.


Inside Inspection Bay

Excellent The shop has a separate bay, away from the normal production area, which is dedicated to vehicle inspections. The bay has it own hoist, adequate lighting and is clean and tidy.

Very Good The shop has a separate bay dedicated to vehicle inspections. The

bay has adequate lighting and is clean and tidy but lacks a hoist.

Good The shop has a separate bay dedicated to vehicle inspections but was cluttered and untidy at the time of inspection.

Poor There is no dedicated vehicle inspection bay. The shop however will

bring vehicles into the production area upon request.

PRODUCTION AREA: Overall Layout

Excellent Layout is conducive to facilitate vehicle workflow and movement.

The shop has incorporated such features as “Quick Repair” lanes etc to increase the shop efficiency.

Very Good Layout is conducive to facilitate vehicle workflow and movement.

The shop has not incorporated such features as “Quick Repair” lanes etc to increase the shop efficiency.

Good Flow of traffic is somewhat restricted due to layout.

Poor Flow is very restricted due to shop layout.

Floors Clean and Swept

Excellent Floors are clean and spotless, no dirt

Very Good Floors are slightly dirty and untidy

Good Floors are dirty and tools, paper etc strewn about.

Poor Floors are very dirty and cluttered, making mobility by foot or vehicle, difficult.

Tools and Supplies in Proper location

Excellent All tools and supplies currently not in use are stored in proper

locations. Very Good Some tools /supplies are out of place, but not enough to restrict work.

Good Tools and supplies are not in proper place causing some restriction

on movement/work.

Poor Many tools/supplies are not in their proper place making it difficult to move around or work.


Parts Storage Area

Excellent The shop has a separate, well organized clean parts storage area. The parts have be separated and sorted by job.

Very Good The shop has a separate clean and neat area devoted solely for

parts storage.

Good The parts storage area is cluttered, untidy and unorganized.

Poor The shop does not have a separate parts storage area. Parts are delivered either to the reception area or directly to the production area.

Separate Paint Mixing/storage area

Excellent Separate paint mixing room. The area is clean, explosion proof and

has its own ventilation system.

Very Good As above but somewhat untidy.

Good Paint mixing area is not closed off but is clean and tidy.

Poor Paint mixing room or area which is extremely dirty to the point of being hazardous.

Distasteful pictures, trade calendars or signs visible

Excellent None visible (zero tolerance).

Poor Visible to some degree.

Shop Personnel neatly attired

Excellent Production staff is uniformed, with nametags. Uniforms are clean

and neat in appearance.

Very Good Production staff is uniformed but uniforms are untidy and need cleaning.

Good Production staff have mismatched or no uniforms but there

appearance is neat and tidy.

Poor Production staff does not have uniforms and their appearance is untidy.


THE DOMINION OF CANADA GENERAL INSURANCE COMPANY RECOMMENDED VENDOR PROGRAM

VENDOR AGREEMENT - COLLISION REPAIR FACILITIES

In consideration of being selected as a recommended vendor for The Dominion of Canada General Insurance Company (“The Dominion”) and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, “Name” (herein after referred to as (the “Shop”) hereby agrees with The Dominion as follows: Representations and Warranties 1. The Shop hereby represents, warrants and agrees that:

a) it meets the licensing requirements of all Federal, Provincial and Municipal authorities and it

will continue to meet such requirements during the term of this Agreement;

b) it employs fully trained and licensed technicians, capable of performing high quality repairs and will continue to do so during the term of this Agreement. The Shop further recognizes the need and represents and warrants that it is active in making available, to its employees, training and professional development in both technical and business management disciplines on an ongoing basis;

c) it is not involved or associated with “Chaser” or “Bandit” tow truck operators and/or companies, and it does not solicit or pay commissions for accident vehicles, nor will it do any of the foregoing during the term of this Agreement; and

d) it is aware of its responsibilities under the Personal Information Protection and Electronic Documents Act and similar applicable legislation, further acknowledges receipt of and agrees to abide by the attached protocol provided by The Dominion.

Shop Appearance, Equipment and Software 2. At all times during the term of this Agreement:

a) the customer reception area of the Shop shall be clean and presentable, consistent with first class industry standards;

b) the Shop shall have inspection facilities to properly conduct damage assessments consistent with first class industry standards;

c) the Shop shall have proper unibody and conventional frame straightening equipment consistent with first class industry standards;

d) the Shop shall have a proper gauging and measuring system consistent with first class industry standards;

e) the Shop shall have a down draught spray booth consistent with first class industry standards;

f) the Shop shall have MIG welding equipment, operated in a manner consistent with first class industry standards; and


g) the Shop shall have Audatex Estimating software and shall have the Electronic Data Interface (EDI) capability to communicate with The Dominion, subject to The Dominion’s reasonable requirements from time to time.

Covenants and Additional Agreements

3. The Shop shall honour The Dominion’s “Satisfaction Repair Guarantee” on all repairs.

4. The Shop shall follow the estimate/performance guidelines attached as Schedule “A”.

5. The Shop shall adhere to and apply the estimating standards and depreciation guidelines as set out in this Agreement and further detailed in The Dominion’s “Recommended Vendor Manual - Collision Repair Facilities” (Manual), as amended from time to time.

6. The Shop agrees to the mutually agreed upon labor rates as set out in Schedule “B” and further agrees not to modify these rates without prior consultation and written acknowledgement from The Dominion.

7. The Shop shall abide by such instructions and directives that may be issued by The Dominion from time to time during the term of this Agreement. Although the Shop may be a recommended vendor for The Dominion, there is no exclusivity of services given to the Shop by The Dominion.

8. The Shop agrees that it shall disclose any conflict of interest to The Dominion in connection with the provision of its services contemplated under this Agreement. The Shop shall not enter into any oral or written agreement with policyholders/claimants of The Dominion providing any concessions or favors to any such persons out of the ordinary course of business, without the prior written consent of The Dominion.

The Dominion does not object to the Shop providing repairs to vehicles of policyholders/claimants for matters outside of specific collision damage, provided that such repairs are made on a bona fide basis at reasonable rates in the ordinary course of business.

9. The Shop hereby agrees to indemnify and save harmless The Dominion from any and all claims or demands made by any policyholders/claimants of The Dominion as a result of any repairs or other services performed by the Shop in favor of policyholders/claimants.

10. The Shop shall not attempt to bind The Dominion nor make any representations or warranties or covenants on behalf of The Dominion to any policyholders of The Dominion or any third parties.

Inspection and Records

11. The Shop agrees to allow staff and/or representatives of The Dominion access to the Shop prior to, during and after repairs are completed to determine that estimates are being prepared accurately, that repairs are being completed as per the estimate and that the quality of the repairs meets first class industry standards. The Shop further agrees to maintain complete and accurate records of all transactions and agrees to permit representatives of The Dominion to review such documents, and the Shop will provide supporting documentation to The Dominion upon request.

The Dominion – No Representations

12. The Shop agrees that no representations and warranties have been made by The Dominion regarding any minimum volume of work.


13. The Shop agrees that The Dominion is not responsible for any costs associated with the Audatex Estimating software and that all costs for implementation and maintenance, including hardware costs, are to be borne by the Shop directly.

Term and Termination

14. This Agreement may be terminated by either party upon 90 days written notice to the other. The Dominion may terminate this Agreement immediately upon the bankruptcy or insolvency of the Shop, or in the event that any representations or warranties or covenants of the Shop under this Agreement are untrue or incorrect or is not complied with, in any material respect.

15. The Shop agrees that in the event that the Agreement is terminated, for any reason whatsoever, the Shop will indemnify and save harmless The Dominion from any claims howsoever arising as a result of having installed the Audatex Estimating software and the EDI capability to communicate with The Dominion.

16. Upon termination of this Agreement and upon request by The Dominion, the Shop shall provide The Dominion with all records of services performed by the Shop in favor of policyholders/claimants of The Dominion, and such other information as The Dominion may reasonably require.

The Dominion’s Intellectual Property

17. The Shop agrees to obtain the approval, in writing, of a representative of The Dominion prior to the production and/or use of any literature, promotional material or advertising which identifies The Dominion of Canada General Insurance Company.

18. The Shop acknowledges that any and all literature, advertisement material or similar documentation provided to the Shop which identifies The Dominion of Canada General Insurance Company is the sole property of The Dominion and as such will be immediately returned to The Dominion upon termination of this Agreement.

General Provisions

19. The Shop acknowledges having read and understands all terms of this Agreement, including Schedules A, Schedule B and the Manual, and further agrees to abide by all terms and conditions contained therein.

20. All information regarding The Dominion or its policyholders/claimants that is reasonably confidential or proprietary or confidential to The Dominion shall be kept confidential by the Shop and not disclosed to any third party, without the prior written consent of The Dominion.

21. The Shop may not assign this Agreement without the prior written consent of The Dominion.

22. This Agreement, together with the schedules hereto, constitute the entire Agreement between the parties and supersedes all agreements, oral or written, all previous negotiations and all other communications between the parties with respect to the subject matter hereof.

23. Time shall be of the essence in this Agreement.

24. This Agreement shall be governed and construed by the laws of Ontario and the federal laws of Canada applicable therein.

25. The parties hereto have requested that this Agreement and all documents relating to this Agreement be written in the English language. Les parties aux présentes ont convenu que cette convention et tous les documents qui s’y rapportent soient rédigés en langue anglaise.


26. Nothing in this Agreement nor any acts of the parties shall be deemed to constitute the parties as partners of each other or to create a joint venture between them. The duties to be provided and the obligations assumed by the Shop hereunder shall be as an independent contractor of The Dominion.

27. The provisions of Sections 1(d), 12, 14, 15, 16, 18, 19, 20, 21 and 23 of this Agreement shall survive termination of this Agreement.

28. No modification of or amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by both of the parties hereto and no waiver of any breach of any term or provision of this Agreement shall be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided, shall be specifically limited to the specific breach waived.

29. If any provision contained in this Agreement shall, to any extent, be determined to be invalid or unenforceable, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected, and each provision of this Agreement shall be separately valid and enforceable to the fullest extent permitted by law.

30. This Agreement shall ensure to the benefit and be binding upon the parties hereto and their respective successors and assigns.

SIGNED THIS ______ DAY OF ____________________ , __ __ __ “Name” PER “Program Administrator” THE DOMINION OF CANADA GENERAL INSURANCE COMPANY PER AVP Regional Claims THE DOMINION OF CANADA GENERAL INSURANCE COMPANY PER Manager Vendor Programs


PRIVACY TERMS OF AGREEMENT For the purposes of the Recommended Vendor Program, The Dominion will disclose personal information to You (Recommended Vendor) under the following Terms of Agreement. Compliance with Privacy Legislation You represent to The Dominion that at the time this Agreement is entered into, You are in compliance with the federal Personal Information Protection and Electronic Documents Act and similar provincial legislation (collectively, “Privacy Legislation”) governing “personal information,” as defined in the respective Acts. You undertake to maintain compliance with all applicable Privacy Legislation as long as You are a Recommended Vendor of The Dominion and as long as You retain personal information collected or used for the purposes of the Recommended Vendor Program. Confidentiality of Personal Information You agree to protect the confidentiality of personal information and will not disclose personal information collected or used for the purposes of the Recommended Vendor Program, unless as provided by the Privacy Terms of Agreement or as required by law. You will not use personal information provided by The Dominion except as required for the purposes of the Recommended Vendor Program. Sending Personal Information Outside of Canada If You send personal information collected or used for the purposes of the Recommended Vendor Program outside of Canada, You agree that the personal information will remain protected with the same standards as required under Canadian Privacy Legislation. Outsourcing Personal Information You warrant that you do not and will not outsource the collection, use or disclosure of personal information to another service provider without prior written authorization from The Dominion. Security Breach You shall promptly notify The Dominion of any breach or suspected breach of security involving any personal or confidential information collected or used for the purposes of the Recommended Vendor Program. Any breach of security includes unauthorized access or potential unauthorized access to any personal or confidential information collected or used for the purposes of the Recommended Vendor Program. Hold Harmless You agree to indemnify and hold harmless The Dominion from all costs, damages, fines, penalties or other liabilities arising out of a breach of security with respect to personal or confidential information collected, used or disclosed by You or your non-compliance with any applicable Privacy Legislation or the terms of the Recommended Vendor Program, or any matter arising out of your negligent handling of personal or confidential information. “Name” PER SIGNED THIS DAY OF _________________, __________ “Program Administrator”


SCHEDULE “A”

ESTIMATING PERFORMANCE GUIDELINES: 1. When a new claim is assigned to the Shop, the Shop will contact the policyholder/claimant, and

make arrangements to inspect and appraise the vehicle. If the vehicle is non drivable, the Shop will arrange to have the vehicle towed to the Shop. If the policyholder/claimant does not respond, the Shop is to notify The Dominion on a timely and regular basis.

2. The Shop will make a careful examination of the damaged vehicle, prepare a preliminary estimate using Audatex Estimating and will transmit a copy of the estimate using Audatex Claims Manager to The Dominion as soon as possible. The Shop will include the policyholder/claimant’s name, policy number and date of loss, along with the make, model, serial number and mileage of the damaged vehicle on the estimate.

3. Digital images clearly showing the damaged areas and overall condition of the vehicle are to be submitted with the estimate in Audatex Estimating.

4. When feasible, the Shop should always attempt to repair over replacement.

5. The Shop should locate and apply recycled (Like Kind and Quality - LKQ) parts whenever warranted. LKQ parts are to be considered on vehicles three model years and older. LKQ parts are to be from the same model year or newer as the vehicle being appraised.

6. Exchange and certified Non-OEM (aftermarket) parts should be utilized whenever practical. Non-OEM parts to be considered on vehicles three model years and older.

7. The use of LKQ and Non-OEM parts must be clearly indicated on the appraisal and disclosed to the policyholder/claimant before repairs begin.

8. Appropriate deduction should be made when repairs and/or refinishing are required on two or more adjacent panels.

9. The Shop should use the Audatex Estimating system generated paint times taking into consideration blending and/or spot painting and zone refinishing whenever possible.

10. An allowance for a front or four wheel alignment should be made when there is damage to wheels, suspension, steering mechanism, or frame/unibody which would cause misalignment of control arms. The Shop is to follow the depreciation guidelines outlined in the Manual. Non accident related damages, such as worn ball joints etc are the responsibility of the policyholder/claimant.

11. The Shop is to apply depreciation to batteries, tires, exhaust systems, body rust, paint, upholstery etc. as per the guidelines in the Manual and will collect the depreciation, if applicable, from the policyholder/claimant.

12. Where appropriate, the Shop will recommend cash allowances on minor marks or scratches on bumpers, tires, vinyl roof etc. These adjustments may be subtracted from the deductible after approval has been received from The Dominion.

13. Old or prior damage is not to be included in the estimate. The Shop should make note of any such damage in the remarks section of the Audatex Estimating and in Audatex Claims Manager.


14. The estimate should reflect the Shop’s professional opinion of the necessary type(s) of repairs. Any policyholder/claimant demands for new parts, replacement of repairable parts etc. should be separately noted, but not included in the estimate.

15. If the estimate indicates that the vehicle is a total loss, do not start repair. Indicate in Audatex Estimating and Audatex Claims Manager that the vehicle is a total loss, complete an Audatex Autosource Pre-Damage Appraisal (PDA) Sheet, a Disposition of Salvage Report (DOS) and send them to The Dominion within 48 hours of inspecting the vehicle. In the event that the vehicle is a borderline total loss an appraiser may be assigned to inspect the vehicle.

16. When an assignment is received in Audatex Claims Manager from The Dominion, the Shop may proceed immediately with repairs, provided:

i. The assignment was not sent on a “Without Prejudice” basis, ii. The vehicle is not a total loss, iii. The gross estimate of repairs is less than $5,000, iv. The shop has obtained proper authorization from the owner of the vehicle to

undertake repairs, reviewed the estimate of repair with the policyholder/claimant; and

v. A copy of the estimate and images has already been sent to The Dominion in Audatex Claims Manager.

17. Repairs are to be carried out exactly as per the final estimate submitted for payment.

18. If additional damage, which exceeds the supplement allowance of $300, is discovered during the course of repairs, the Shop will notify The Dominion immediately and provide a second estimate complete with digital images showing the additional damage and estimated costs. At the discretion of The Dominion, a company representative may be assigned to inspect the vehicle and subsequent damage.

19. Payment for repairs will be made payable directly to the Shop once repairs have been completed and upon receipt of the final estimate in Audatex Claims Manager.

20. The Dominion’s Satisfaction Repair Guarantee is to be completed by the Shop, included in the Recommender Vendor Folder, along with a copy of the final estimate, and given to the policyholder upon completion of the repairs.

21. All legitimate repair complaints should be resolved by the Shop to the satisfaction of the policyholder/claimant.

22. The Shop will maintain the highest standard of customer service to meet the needs of The Dominion and its policyholders/claimants.

23. The Shop will maintain a reliable professional reputation and obtain proper written or documented verbal authorization from the owner for all work.

24. The Shop will not waive or bury the policyholder’s deductible.

25. The Shop will maintain a harmonious working relationship with company adjusters, appraisers, other personnel and appointed representatives.

26. Business related promotion or entertainment with The Dominion claims staff is prohibited unless prior approval is granted by Claims Management.


SCHEDULE “B”

LABOUR AND MATERIAL RATES:

Labour: Frame: $________ / hr. Body: $________ / hr.

Paint: $________ / hr. Mechanical: $________ / hr.

Body Materials: $________ / labour hr. (excl. paint hours)

Paint Materials: $________ / paint hr.

Hazardous Waste: $________ / estimate

Mark Up on LKQ Parts: 25 %

Storage Charges: $ 25.00 / day After ten (10) working days grace period

Rental Cars: Discount Car & Truck Rentals

SIGNED THIS ______ DAY OF ____________________, ________

“Name”

PER

“Program Administrator”


STANDARDS OF BUSINESS CONDUCT: Introduction: The Dominion of Canada General Insurance Company is proud of its long tradition of integrity and credibility. Our industry imposes distinct responsibilities and clear expectations regarding the individual and collective business conduct of those who participate in it. It is important that both our staff and our Recommended Vendors understand those responsibilities and expectations in order to protect our highly valued reputation and to help us attain our goal to serve the best interests of our mutual customers, brokers and shareholders, and to provide “Outstanding Claims Service”. As a Recommended Vendor it is by your actions that we are known. The following guidelines are designed to help both staff and our Recommended Vendors to meet the Standards of Business Conduct established by The Dominion. They define your accountability to our customers and to our company, and they uphold the laws that regulate financial institutions. These principles, combined with good judgement and common sense will enable each of us to carry out our responsibilities in a way that demonstrates integrity and shows respect for all stakeholders. Standards of Service: Our record of service excellence must be upheld by fairness, courteousness and responsiveness on the part of every staff member and Recommended Vendor. Our commitment to service excellence is to be displayed in the following ways:

a) Every staff member and Recommended Vendor must provide clear, accurate and timely information to everyone with whom they interact: shareholders, brokers, policyholders, fellow staff, etc.

b) All customers and potential customers have equal rights to fair and equitable treatment, without

regard to race, colour, religion, marital status, sex, sexual orientation, national origin, age or physical ability.

Conflict of Interest: We must work to ensure that at all times our staff members and Recommended Vendors act in the best interests of The Dominion, its brokers and customers. It is important, therefore, that real or perceived conflicts of interest be avoided.

a) Staff members and Recommended Vendors must not engage directly or indirectly in any activity that competes or conflicts with the interests of The Dominion.

b) Staff members and Recommended Vendors must conduct their personal affairs so as to avoid

any situation that could create a conflict or perceived conflict with The Dominion.

c) It is recommended that staff members, Recommended Vendors or members of their respective immediate families not have a financial interest in a customer or broker of the company. If such interest exists, it must be disclosed immediately.

d) Staff members and Recommended Vendors who engage in other employment, other business

activities or have other business interests, or anticipate doing so, are obliged to inform their managers and/or The Dominion who can determine whether a conflict of interest, real or perceived, is present.


e) The Dominion's services are to be rendered fairly and equitably and no customer, broker or other party is to be favoured. It is improper for any staff member or Recommended Vendor to solicit or accept financial favours, costly entertainment or gifts from suppliers or customers. The giving and receiving of common courtesies associated with sound business practice is permitted (examples include promotional items, occasional meals, or reasonable entertainment appropriate to the business relationship). Staff members and Recommended Vendors must not be influenced in business dealings by friendships or other personal associations.

f) Staff members and Recommended Vendors must not solicit corporate directorships or

appointments as executors, administrators or trustees of estates of brokers. Any such appointment must be disclosed in writing.

g) No charitable or political donations may be made on behalf of The Dominion without prior

approval of The Dominion. Political and community activity by staff members and Recommended Vendors acting privately is encouraged provided that it does not interfere with work duties.

Personal Standards: It is expected that all staff members and Recommended Vendors will demonstrate high personal standards of honesty, integrity and sound judgement. The following principles relate to these personal standards:

a) Every staff member and Recommended Vendor shall be treated without discrimination, harassment, intimidation or humiliation.

b) Staff members and Recommended Vendors, as personal representatives of The Dominion, must act in a professional manner at all times.

c) It is important that all staff members and Recommended Vendors adopt a standard of dress and hygiene that is befitting a professional business environment.

d) Any requests from the media for information must be forwarded immediately to The Dominion’s Assistant Vice President, Corporate Communications. Staff members and Recommended Vendors should avoid any inferences or specific remarks that may disparage the company, its products or its staff.

e) Resources belonging to The Dominion such as cars, telephones, internet access or electronic

mail facilities are business tools and must be used in a responsible and professional way. The following are examples of unacceptable use of these resources:

i) The retrieval, downloading, transmission, or storage of any material of an obscene, pornographic, discriminatory, or harassing nature as well as visiting World Wide Web sites or Usenet newsgroups of this sort;

ii) transmitting abusive, profane or offensive language;

iii) sending communications that in any way may offend, threaten, deceive, or discriminate;

iv) engaging in any purpose which is illegal or against company policies or contrary to the best interests of The Dominion;

v) frivolous use of company resources, such as the transmission of chain-letters by e-mail;

vi) solicitation of non-company business; and


vii) any use of company resources for personal commercial gain.

f) Staff members and Recommended Vendors must not use the company's material, equipment or personnel for other than company purposes without prior approval.

At any time and without prior notice, The Dominion retains the right to monitor phone calls, examine e-mail, directories and files. This allows The Dominion to ensure compliance with internal policies, conduct internal investigations, and manage its information systems.

Any attempt to defraud The Dominion or flagrant violation of these standards is cause for immediate dismissal. Conclusion: These standards are fundamental to the business and reputation of The Dominion and our Recommended Vendors. They are not intended to be exhaustive in terms of determining individual or collective behaviour but are guidelines to assist in the use of good judgement by all parties in representing our respective companies. Adhering to these standards will ensure that we serve the best interests of our mutual customers.


APPRAISER’S CODE OF CONDUCT: Introduction:

The following Code of Conduct is intended to augment the “Standards of Business Conduct” established by The Dominion of Canada General Insurance Company as it relates specifically to automobile appraisers. Code of Conduct: All appraisers employed or retained by The Dominion or a Recommended Vendor shall:

a) Conduct themselves personally and professionally in such a manner as to inspire public confidence,

b) Carry out the appraisal without prejudice against or favouritism towards any party,

c) Prepare their appraisal before referring to any other estimates,

d) Disregard any efforts on the part of owners, repairers, insurance personnel, third parties,

attorneys or others to influence their appraisal in any way in the interest of any of the parties involved,

e) Inform the customer, as the case may be, of the amount and status of the appraisal, advise

them of any applicable deductible, depreciation, betterment charges, appearance allowances or use of Non-OEM parts and make a copy of the appraisal available to them,

f) Keep fully informed of changes in the automobile industry as they relate to motor vehicle

values, the cost of repairs, and procedures affecting repairs.

g) All appraisers employed or retained by The Dominion or a Recommended Vendor shall not:

h) Engage, directly or indirectly, (outside their normal employment at The Dominion or a

Recommended facility) in activities for personal profit or reward related to any of the following businesses:

i) Automobile repairs, mechanical or body, ii) Automobile dealerships iii) New or used automobile sales or rentals iv) Automobile salvage operations

v) Automobile part sales or distribution, whether new or used

i) Bid on, or purchase vehicles acquired by The Dominion, or its agents, as a result of a

claims settlement,

j) Appraise property for which they have any direct or indirect financial or potential financial interest,

k) Procure any profit or acquire any interest other than salary on any vehicle that they

appraise or re-inspect,


l) Prepare an appraisal without personally inspecting the damaged vehicle,

m) Knowingly provide for parts to be replaced if the parts are known to be repairable in a satisfactory and safe manner (except under extenuating circumstances where thorough documentation is provided), or to agree to or connive such acts with any other party,

n) Knowingly increase repair times beyond that needed to make acceptable and safe repairs

to the vehicle,

o) Act beyond the scope of their authority,

p) Accept any kind of inducement to provide a specific claims result. We ask all appraisers to carefully review the standards and procedures and to consult with their immediate supervisor if the correct cause of action in any situation remains unclear. It is essential that all of The Dominion’s employees and Recommended Vendors adhere to these standards. Failure to do so could lead to disciplinary action, which could include termination of employment or cancellation of any contract or agreement with The Dominion. Qualifications and Competency: An appraiser shall be expected to demonstrate a thorough knowledge of automated computerised estimating systems (specifically Audatex Estimating) and have a practical knowledge of auto repair methods, techniques and procedures including but not limited to:

a) Component reparability versus replacement,

b) Sheet metal repairs,

c) Frame repairs, both conventional and unibody construction,

d) All types of refinishing techniques including base coat / clear coat, three stage, etc.,

e) Evaluation of total losses,

f) Application of betterment and depreciation,

g) Relevant insurance coverages and applicable endorsements,

h) Be enrolled in or have completed the I-Car Gold Class, Platinum Class or equivalent training programmes(s) and have successfully completed the applicable exams.

i) Have a neat and presentable appearance (business casual dress code applies), j) Strive to provide “Outstanding Claims Service” to all of our customers,

k) Adhere to The Dominion Recommended Vendor Manual – Collision Repair Facilities and

l) Have and exercise strong verbal and written communication skills.


Duties and Responsibilities: Appraisers are expected to:

a) Promptly appraise and establish an agreed cost of repair to the customer’s vehicle, which will ensure safe and effective repairs while maintaining an appropriate level of loss costs.

b) Determine a preliminary ACV, using such tools as the Canadian Red Book, Audatex

Autosource, autotrader.ca etc to establish whether heavily damaged or older vehicles are repairable or not.

c) Confirm that the point of impact is consistent with the cause of loss and advise The

Dominion immediately of any discrepancies.

d) Where possible, inspect and appraise vehicles within twenty-four hours of receipt of the assignment. Subsequent reports are to be submitted, using Audatex Estimating, within forty-eight hours of the vehicle being seen.

e) Obtain proper written or documented verbal authorization, from the owner, prior to tearing

down or doing any repairs, including temporary repairs, to the vehicle.

f) Once the vehicle has been inspected and the damages assessed review with the customer the status of the vehicle and the amount of damages.

i) If the vehicle is repairable:

• Confirm where the vehicle is to be repaired,

• Advise the customer that they must authorize the repair facility to proceed with

repairs,

• Review any amounts to be paid by the customer upon completion of repairs (e.g. deductible, betterment…), review any use of Non-OEM parts and

• Make a copy of the appraisal available to the customer.

ii) If the vehicle is a total loss, this contact with the customer is the ideal time to obtain

all the information, which will help to establish an appropriate ACV.

The appraiser should:

• Advise the insured of the process to be followed,

• Obtain and consider the vehicle history with them regarding the purchase of the vehicle and / or recent repairs etc. that would affect the value of the vehicle,

• Arrange for the customer to remove their personal belongings and license plates.

These discussions with the customer are to be documented in writing and communicated to The Dominion “Review Desk” within two working days of the inspection, as per the “Appraisal Procedures”, so that they can be subsequently entered into Audatex Estimating and/or Claims Centre.

g) Provide support and act as a resource to The Dominion “Review Desk”, our Adjusters and our Staff Appraisers to resolve any issues.


h) For vehicles being repaired at a The Dominion Recommended Collision Repair Facility, conduct periodic re-inspections during the course of repairs, to ensure repairs are being carried out exactly as per the estimate and that the quality of repairs is to industry standards.

i) Upon completion of repairs provide the customer with a final estimate detailing the repairs that were performed including any supplements.

j) Follow up with the customer, after the fact, to ensure that the repairs have been completed to their satisfaction.


APPRAISAL PROCEDURES General:

a) Prior to writing of any appraisal, the appraiser will conduct a preliminary inspection of the entire vehicle. This will allow the appraiser to:

i) Verify that the identity of the vehicle matches the appraisal assignment,

ii) Evaluate the overall condition of the vehicle,

iii) Analyze points of impact in relation to the loss description and

iv) Identify any prior damage

b) Appraisers are not to accept or attempt to write appraisals on vehicles (e.g. tractor-trailers,

heavy equipment, motorcycles, recreational vehicles, etc) unless they are fully qualified to do so. In such circumstances The Dominion “Review Desk” is to be notified immediately to have the task reassigned.

c) The appraiser should notify The Dominion immediately if there is any evidence that the loss

is suspicious or if a defective part or faulty workmanship is suspected as the cause of loss,

d) All appraisals, regardless of the amount of damage, are to be written using Audatex Estimating.

e) While preferable, reaching an agreed cost of repair with the customer is not mandatory. In

those unusual cases where the appraiser and the customer cannot agree, the appraisal is to be written using professional judgement with a request for assistance from a representative of The Dominion.

f) In all cases, upon inspection of the vehicle, the customer should be contacted and the

status of their vehicle and their options explained. In addition, The Dominion’s “Review Desk” should be contacted immediately with a status report.

g) All appraisals are to be completed within twenty-four hours of receipt of the assignment and

a report submitted to the “Review Desk” within two working days of the inspection. The “Review Desk” is to be notified and provided a reason for any deviation from this standard.

h) All assignments must be uploaded to the Audatex host computer and returned to the

“Review Desk” within two working days of the initial inspection. In cases where the appraiser feels there is hidden damage, which will require dismantling of the vehicle prior to completing the appraisal, photos are to be taken and a preliminary appraisal prepared based on the visible damage only. Where the vehicle will be dismantled and the estimate completed within twenty-four hours, the additional damage maybe treated as a “correction”. In all other situations, appropriate notes are to be made in Audatex Estimating and the assignment is to be uploaded and returned to the “Review Desk” as outlined above and the additional damage treated as a “supplement” at a later date. In the event that the hidden damage may render the vehicle a total loss, the initial appraisal is to be written on a “Without Prejudice” basis. Under no circumstances is the appraiser to authorize disassembly or repairs to any vehicle. The repair facility must obtain proper prior authorization from The Dominion “Review Desk” and the vehicle owner. In the event that after disassembly, the vehicle is determined to be a total loss, the appraiser should prepare a separate Audatex estimate for the dismantling of the vehicle and submit it to the “Review Desk” for payment to the repair facility directly.


i) Photographs are required on all losses:

i) Repairable Losses - a minimum of one photograph showing the license plate and an overall view of the vehicle and damage is required.

ii) Theft Recoveries – in addition to an overall view, photographs showing the point of forced entry and damage to the ignition, or lack thereof, should also be included.

iii) Total Losses – a minimum of four photographs, one from each corner of the vehicle are mandatory.

iv) Additional Photographs – at the appraiser’s discretion and when appropriate, additional photographs may be provided to show such things as: a close up view of the point of impact, inner structural damage, interior damage, unrelated prior damage, additional damage discovered during the repair process, etc.

For photographs to be of any value and to avoid unnecessary delays they need to be clear, have comments attached as required and be taken at an appropriate resolution.

Administration Information: Each appraisal shall include the following:

a) The name of the company associated with the claim (The Dominion),

b) The claim number (with the appropriate prefix added),

c) The name and phone number of the ADJUSTER associated with the claim,

d) The date of loss,

e) Loss type (collision, comprehensive, liability…),

f) The name, address and phone number of the insured,

g) The name, address and phone number of the claimant if different from the insured,

h) The name of the loss payee, if different from the insured,

i) The deductible if applicable,

j) The name of the appraiser who inspected the vehicle,

k) The date the vehicle was inspected,

l) Inspection type (using one of the following only)

i) DRP - DIRECT REPAIR PROGRAM – vehicles appraised and to be repaired at a

Dominion Recommended – Collision Repair Facility.

ii) DAP - DIRECT APPRAISAL PROGRAM – vehicles appraised at a Dominion Recommended – Collision Repair Facility but the customer is undecided or has decided to have it repaired at another facility.

m) The name, address and phone number of the owner of the vehicle if different from the

insured.


Vehicle Information:

a) The vehicle identification number (VIN), mandatory on all losses and to be verified from two

(2) locations on the vehicle,

b) The year, make, model, engine size and transmission type of the vehicle,

(These items will be entered in Audatex Estimating automatically if a correct VIN is entered.)

c) A listing of all standard, optional and aftermarket equipment and accessories,

(Audatex Estimating will automatically enter only those options that are standard for the vehicle. To ensure the accuracy of the appraisal, regardless of the severity or point of impact, all options must be entered.)

d) The Point of Impact.

e) To ensure the accuracy of statistical data, it is imperative that the “Total Loss” indicator be

used whenever applicable. On vehicles initially thought to be reparable and subsequently determined to be a total loss, the appraiser should confirm that this option has been selected prior to uploading the appraisal.

f) The colour of the vehicle,

g) The mileage on the vehicle at the time of the inspection, h) Licence plate number,

i) Province / State of registry.

Repair Facility:

a) The name, address, phone number and contact person of the repair facility where the

vehicle is to be repaired (if known),

b) The labour rates and material costs charged by the repair facility for insurance related work (if the repair facility is unknown, the average rates charged for insurance related work for the given area are to be used),

Damages:

a) All appraisals are to be written using Audatex Estimating and shall:

b) Include an itemized listing of all damages related to the loss,

c) Include an itemized list of any unrelated or prior damage,

d) Include only visible damage,

e) Favour repair over replacement whenever appropriate (even in the case where replacement

cost endorsements are in effect),

f) Include appropriate descriptions on any allowances for frame or unibody damage (e.g. sway, buckle, twist, diamond, etc.),


g) Reflect consideration for Non-OEM parts (Aftermarket / PXN New), Like Kind and Quality

parts (LKQ) and Remanufactured parts as per the “Estimating Standards”,

h) Reflect consideration for betterment, depreciation and appearance allowances as per the “Estimating Standards”,

i) Include a copy of the bill whenever towing and payouts are charged by the repair facility.

Time to Repair:

Regardless of whether or not loss of use coverage is provided, the appraiser is to include a note in the appraisal as to where the vehicle is to be repaired and an indication as to the reasonable amount of time required to repair the vehicle based on the “point three” formula (see The Dominion “Car Rental Program”). If the vehicle is not driveable, consideration should be given for the time required to obtain the parts and should be included in the total.

Total Losses:

a) The following general formula should be used to determine if a vehicle is a total loss:

The vehicle is considered to be a total loss if:

The estimated repair cost (including all applicable taxes)

plus Any hidden damage reserve (including all applicable taxes)

Is greater than or equal to

The Actual Cash Value (including all applicable taxes) of the vehicle

minus The anticipated salvage return (including GST only) for the area (see attached rates)

The above formula is provided as a guide only and it is acceptable, for appraisers to use their own professional judgement provided it is fair, reasonable and is properly documented. For example, if it is the opinion of the appraiser that the vehicle being appraised has been so extensively damaged that even if repaired there would still be some doubt as to whether or not the vehicle was fit for safe operation or use on the highway, it should be declared a total loss regardless of the economics.

b) In the event that the appraisal renders the vehicle a total loss, the appraiser should:

i) Take the necessary photographs as detailed above, ii) Confirm that “Total Loss” indicator has been selected as the “Point of Impact”,

iii) Contact the customer to advise them of the status of the vehicle and the process to

be followed,

iv) Obtain and consider the vehicle history with them, regarding the purchase of the vehicle or recent repairs etc. that would affect the value of the vehicle,

v) Arrange for the customer to remove their personal belongings and licence plates,


vi) Obtain permission from the customer to move the vehicle to a storage free facility preferably one of our salvage partners.

vii) Complete an Audatex Autosource Pre-Damage Appraisal (PDA) sheet,

viii) Complete a Disposition of Salvage Report,

ix) Make the appropriate comments in Audatex Estimating that the vehicle is a total

loss,

x) Submit the estimate and necessary reports to the “Review Desk” within two working days of inspecting the vehicle.

Estimated Salvage Returns: For the purposes of determining if a vehicle is a total loss, the following estimated salvage returns (as of April 1, 2010) should be used;

2010 2009 2008 2007 2006 2005 2004 & Older

Average Return 33% 26% 21% 20% 18% 16% 14%

Stolen & Recovered Vehicles – Unsettled Claims:

a) If possible, the appraiser should meet with, or at the very least talk to, the customer to review the damages claimed as a result of a total theft.

b) If there is no evidence of forced entry to the vehicle, all appraisals are to be done on a

“Without Prejudice” basis and sent in Audatex Estimating. A comment should be included requesting further direction from The Dominion.

c) Appraisals for stolen & recovered vehicles shall:

i) Include an allowance for a grease, oil and filter change,

ii) Include an allowance for a mechanical inspection, including a check of all fluids, a road test and a written report of any deficiencies. This inspection and report should be completed prior to any other repairs being undertaken to ensure that any of the damages found during the inspection are covered under the loss and that the cost to repair the damage does not render the vehicle a total loss.

iii) Subject to the mechanical report and/or evidence of physical damage, include an

allowance to change the transmission fluid and filter and a two or four wheel alignment as required.

iv) Include an itemized listing of all interior and exterior damages related to the loss,

v) Include an interior shampoo if required,

vi) Include an itemized list of any unrelated or prior damage,

vii) In addition to the normal requirements, include photographs of the point of forced

entry and damaged ignition, or lack thereof.


ESTIMATING STANDARDS: Original Equipment Manufacturer (OEM) Parts:

a) If required, OEM parts must be used on vehicles that are two model years old or newer, or

if purchased new by the insured / claimant, vehicles that are within twenty-four months of the date of manufacture. Exception; the use of Non-OEM parts on vehicles that are two model years or newer may only be considered with authorization from both The Dominion and the owner.

b) The manufacturer’s suggested retail price (MSRP) is to be used when pricing OEM parts.

When establishing the MSRP, the manufacturer already takes into account fluctuations in shipping and handling costs incurred to deliver these parts to various dealers across the country and therefore, no markup over and above the suggested list price is permitted.

Like Kind and Quality (LKQ) Parts:

a) LKQ parts maybe considered on vehicles three model years old or older.

b) LKQ parts are to be from the same model year or newer as the vehicle being appraised. Exception; LKQ parts that are from a vehicle that is older than the one being repaired may only be considered if the LKQ parts are in pristine condition and with authorization from both The Dominion and the owner.

c) LKQ seat belts, air bags or air bag sensors are not to be used under any circumstances. d) Safety related items such as front suspensions and steering mechanisms may be

considered but an allowance must be made to clean and inspect the parts and all load bearing wearable components (e.g. ball joints, wheel bearings etc.) must be replaced with new parts. This additional cost must be taken into consideration by the appraiser when considering whether LKQ parts are a viable and cost-effective alternative.

e) Regardless of the source of LKQ parts, the appraiser should be sure that the quote is for “real steel” so as to eliminate unnecessary and quite often lengthy delays while the supplier tries to locate and deliver the parts to the repair facility. The name and telephone number of the source of the LKQ parts must be included on the appraisal.

f) Availability, delivery times and additional rental costs, if any, are to be taken into account by the appraiser, when considering whether LKQ parts are a viable and cost-effective alternative.

g) For all LKQ sheet metal parts and other major components, the serial number (VIN) from the originating vehicle is to be included on the invoice from the salvage yard.

h) LKQ parts are subject to a standard 25% markup.

i) Whenever LKQ parts are included on an appraisal, an allowance should be included to clean, inspect and trim the parts as required. While this allowance will vary depending on the type and number of LKQ parts utilized, it is anticipated that this allowance will typically fall into the range of 0.5 to 4.0 hours.

j) No betterment charges are to be applied to LKQ parts. k) When repairs are completed by a Dominion Recommended Vendor, LKQ parts are subject

to The Dominion Satisfaction Repair Guarantee.


Non-OEM (Aftermarket) Parts (referred to in Audatex Estimating as PXN or Parts Exchange New):

a) Non-OEM parts maybe considered on vehicles three model years old or older.

b) Only CAPA (Certified Auto Parts Association) certified body parts are to be used. Parts manufacturers and suppliers must provide a certificate, warranty or guarantee with the part. Structural components, as defined by I-CAR (unirails, rad supports, strut tower assemblies, hinge pillars, centre pillars, rear suspension cross members etc.) when required, should be replaced with OEM parts.

c) Where Non-OEM parts, such as radiators, condensers, lamp assemblies etc. are available

which are not subject to CAPA certification, consideration maybe given to their use provided they have proven to be reliable, quality parts.

d) Availability, delivery times and additional rental costs, if any, are to be taken into account by

the appraiser, when considering whether Non-OEM parts are a viable and cost-effective alternative.

e) The appraiser should use their own experience and that of the repair facility to avoid

including poor fitting or inferior quality parts on the appraisal. To do so only compromises the integrity of the repair and adds unnecessary delay to the repair process. Notes to this effect should be included in the appraisal.

f) An allowance may be included in the appraisal to pre-fit Non-OEM parts. This will enable

the repair facility to colour edge panels or components prior to installation and will also help to eliminate delays to the repair process. While this allowance will vary depending on the type and number of Non-OEM parts utilized, it is anticipated that this allowance will typically fall into the range of 0.5 to 1.5 hours.

g) Non-OEM parts should only be utilized when there is at least a $25 and/or 20% or greater

savings based on the OEM price.

h) Use of Non-OEM parts must be clearly indicated on the appraisal and disclosed to the customer before repairs begin.

i) No betterment charges are to be applied to Non-OEM parts.

j) When repairs are completed by a Dominion Recommended Vendor, Non-OEM parts are

subject to The Dominion Satisfaction Repair Guarantee. Re-Manufactured Parts:

a) Re-Manufactured parts maybe considered on vehicles three model years old or older.

b) Use of Re-Manufactured parts must be clearly indicated on the appraisal and disclosed to the customer before repairs begin.

c) No betterment charges are to be applied to Re-Manufactured parts with the exception of

major replacement component assemblies (e.g. engines, transmissions etc.).

d) When repairs are completed by a Dominion Recommended Vendor, Re-Manufactured parts are subject to The Dominion Satisfaction Repair Guarantee.


DEPRECIATION / BETTERMENT GUIDELINES: Vehicle damage may require replacement of parts that wear out or depreciate during the normal expected life of the vehicle. Replacement of these parts results in the owner of the vehicle being in a better position after the repair, than prior to the loss and consequently, subject to the following conditions, betterment may be applicable.

a) Betterment is usually applied to wear items such as: tires, batteries, convertible tops, radiators, shock absorbers, brakes, steering parts etc.

b) Betterment will not be applied unless the part(s) being repaired or replaced show obvious

signs of wear or deterioration.

c) LKQ parts and Non-OEM parts are not subject to betterment charges.

d) With the exception of paint and rust repairs, betterment is to be applied to the cost of the part(s) only.

e) Betterment on paint repairs is only to be applied when it is necessary to refinish the vehicle

completely. In general, the rates below should be used but may be increased appropriately in extreme cases.

f) Betterment on any part(s) is not to exceed 50% of its replacement cost.

g) Betterment is not to be applied to parts on vehicles less than two years old, from the date of

manufacturer, unless the odometer reading is greater than 40,000km.

h) When repairs are completed by a The Dominion Recommended Vendor, if the total betterment on any one claim is less than $50 it shall be waived. Notes are to be included in Audatex Estimating.

i) Where betterment is applied, the appraiser will contact and inform the customer of the

charges, prior to the commencement of repairs. Factors which need to be taken into consideration when determining the amount of betterment to be charged include such things as: age (from date of manufacture), kilometers traveled, condition, measurable wear and judgment. Betterment is to be applied at the higher of the following percentages:

AGE (from date of manufacture)

KILOMETERS

BETTERMENT

0 – 2 years old 0 – 40,000 km 0 % 2 – 3 years old 40,001 – 60,000 km 20 % 3 – 4 years old 60,001 – 80,000 km 30 % 4 – 5 years old 80,001 – 100,000 km 40 %

5 – 6 years & older 100,001 km plus 50 %


THE DOMINION RECOMMENDED VENDOR FOLDERS: The Dominion Recommended Vendor folders are to be provided to all customers of The Dominion upon completion of insurance related repairs whenever a vehicle is repaired at a The Dominion Recommended Collision Repair facility. The folders come pre-stuffed with one brochure;

“AUTO CLAIMS _ General Information” (Form 837 (01/2010))

as well as a blank copy of

The Dominion’s Repair Satisfaction Guarantee (Form 996 (05/2008)

Recommended repair facilities are asked to complete The Dominion’s Repair Satisfaction Guarantee, indicating the name and phone number of the insured, the claim number, the date of loss, and the date that the guarantee was issued. A copy of the final estimate is also to be provided and inserted in the right hand pocket behind the completed guarantee. Repair facilities may also include a copy of their own guarantee(s) and any other related and appropriate promotional material. Repair facilities should also take advantage of the die cuts in the right hand pocket flap to include one of their business cards. An initial supply of folders has been provided to all The Dominion Recommended facilities. Additional copies can be requested through the local Unit Manager (see Appendix A). When ordering, please allow a reasonable amount of time for delivery. As per the Vendor Agreement, all literature, advertisement material or similar documentation provided to the Recommended Vendor which identifies The Dominion of Canada General Insurance Company is the sole property of The Dominion of Canada General Insurance Company and as such will be immediately returned upon request.


3B 0H9 eneen Remmele, Unit Manager Claims

Calgary) 02)492-5714

Appendix A

Contact Numbers at The Dominion Physical Damage (Auto) Unit

Atlantic Regional Centre300 – 100 Venture Run Dartmouth NS B(800)565-1322 (902)429-6813 (902)492-1742 (Fax)

Dave Chelack, AVP Regional Claims D

(403)231-6685 ((9

Ottawa Regional Centre

6L1 er

om Holland, Unit Manager Claims

Oakville) 13)780-6515

300 - 155 Queen St Ottawa ON K1P(800)268-4172 (613)233-1998 (613)230-9086 (Fax)

Doug Cox, AVP Regional Claims David Paul, Regional Claims ManagT

(905)825-6585 (Oakville) (905)825-6575 ((6

Metro East Regional Claims

6G 1B3

r teve Griffith, Unit Manager Claims

Oakville) 89)333-2047

Centre 500 - 8133 Warden Ave Markham ON L(800)265-4408 (289)333-2000 (800)267-9057 (Fax)

Doug Cox, AVP Regional Claims David Paul, Regional Claims ManageS

(905)825-6585 (Oakville) (905)825-6575 ((2

Metro West Regional Centre

M 3M3

(905)825-5303 (Fax)

r

gram)

(905)825-6510

1275 North Service Rd WOakville ON L6(800)268-5371 (905)825-6400

Doug Cox, AVP Regional Claims David Paul, Regional Claims ManageRobert Calitri, Unit Manager Claims Ralph Tassone, Unit Manager ClaimsDonna Hampton, Claims Processor Greg Andrews, Program CoordinatorSpecial Lines (Dealership Pro

(905)825-6585 (905)825-6575 (905)825-6629 (905)825-6751 (905)825-6616

Western Regional Centre

3R5 Unit Manager Claims

ridgit Bourque

03)231-6621

1700 - 777 8th Av SW Calgary AB T2P(800)363-1072 (403)231-6600 (403)237-5085 (Fax)

David Chelack, AVP Claims Rebecca Collins,B

(403)231-6685 (403)231-6671 (4

Pacific Regional Centre 2400 - 1055 West Georgia St

tre V6E 3P3

)

Fran Osen, Unit Manager Claims Calgary)

04)691-1107 PO Box 11114 Royal Cen

Vancouver BC (800)663-9319 (604)684-5811 (604)685-8515 (Fax

David Chelack, AVP Claims (403)231-6685 ((6

Claims Operations 165 University Avenue Toronto ON M5H 3B9

(416)362-1223 (Fax)

n, Senior VP Claims

dinator Autor

ector

Morris Chensue, Review Desk

16)350-3710 (Toronto)

)

(905)825-6619 (Oakville)

(800)268-8447 (416)362-7231

Nora HohmaOperations Joanne Carmody, AVP Claims Operations Ken Boulton, Manager Vendor Programs Martin DaSilva, Program CoorAndre Lepage, Re-InspectoTerry Brock, Re-Inspector Murray Dent, Re-Inspector Cam Lawrence, Re-InspIan Scott, Re-Inspector Mel Derksen, Re-Inspector

(4 (416)350-6861 (Toronto) (905)469-7206 (Oakville) (289)333-2004 (Markham(613)884-7838 (Ottawa) (416)662-1762 (Markham)(416)662-6177 (Oakville) (905)330-8267 (Oakville) (416)904-6381 (Oakville) (403)835-4870 (Calgary)


Appendix B

The Dominion Recommended Shop Guide (01/2010)

Rustproofing $20 Replaced Panel or $10 repaired Panel $60.00 Maximum per vehicle

LKQ Parts LKQ parts must be same model year or newer at shop cost plus 25% markup. If in doubt contact the Image Desk

Hazardous Waste $5 per vehicle Tire Fit & Balance $20.00 Max Windshields Kits $60 each Max

SAFETY ITEMS- Do not use LKQ-- Air Bags & Components, Seatbelts and Tires. If in doubt contact the Image Desk LKQ Suspension can be used when wear items are replaced such as wheel bearings, ball joints ect. If in doubt contact the Image Desk

Color Sand & Buff High end only ( to be approved by Image Desk (At Sheet metal labour))

Sublet Items 25% markup (excludes wheel alignments and Towing)

Spray Mask 0.5 Sheet Metal labour(per vehicle) Flex Additive $15 per cover $20 two covers

Aftermarket Parts All sheet metal parts to be CAPA Certified. Repair OEM where possible. Dry Fit Aftermarket Parts 0.5 SM Try to repair alloy wheels when possible

Wheel Alignments $59.95 Front wheel align $89.95 four wheel align

Recondition & Rebuilt Parts Steering racks, steering boxes, steering columns ect. If in doubt contact the Image Desk OEM Parts If required use QEM parts on vehicles that are two model years old or newer

Paint 2 Stage Paint Cap 2.5 Max 3 Stage Paint Cap 5.0 Max Paint Material Cap @ $650.00 (soft cap) Color Tint 1.0 (Max No Blend)

Mechanical Failure and Fire Insured to pay for cause of loss

Caulking $20 Max Drill Time 4.0 Max AC Recharge $180 Max includes Freon

Rental On the initial upload please add if your shop is repairing the vehicle, if the vehicle is drivable and if your shop is controlling rental and what rental vendor is to be used. The Dominions preferred Vendor is Discount Car & Truck Rentals

Clear Code Diagnostics 1.0 Mechanical Max Clean for Delivery 0.5 Sheet Metal Labour

Towing Place towing cost in the towing section of the estimate and add a clear photo of the towing invoice. Contact Adjuster if invoice exceeds $500 prior to upload Final Estimates Must be marked as “Final Bill” Discount rental invoice is to be attached to the final estimate

Unibody Frame 1.5 Hrs Floor pull 2.5 Hrs Rack (set up & measure) 3.0 Hrs Full Frame Vehicles (set up & measure) Betterment to be applied to the higher of the following %

Age Kilometers Betterment 0-2 years old 0-40,000 km 0%

Photos Add clear photos of damage area and VIN license plate and any supplemental damage 2-3 years old 40,001-60,000 km 20%

3-4 years old 60,001-80,000 km 30% 4-5 years old 80,001-100,000 km 40%

Unrelated Damage Do not put any damage on the estimate that is not related to the claim. If in doubt contact Image Desk prior to upload 5 years old & older 100,001 km 50% Appearance Allowance Consider a $ allowance for minor damage that the vehicle owner agrees not to repair. Contact the image desk to confirm appearance allowance amount Pinstripes 1 panel $25 Max Complete Side $55 Max Contact Image desk for further confirmation

Image Desk MERC Contact: Martin DaSilva (289) 333-2004 Metro East Ottawa Atlantic Regions

Image Desk MWRC Contact: Morris Chensue (905) 825-6619 Metro West Calgary