On July 20, 2012 Safelite® announced through its www.SGCNetwork.com an ADDENDUM to its Safelite Network Participation Agreement/Safelite® Solutions Network Participation Agreement which effectively lays out the rules between Safelite Solutions LLC (Safelite®) and what they call the “notified party” or “participant” (participant). A participant refers to auto glass repair and replacement (AGRR) companies that repair or replace damaged or broken auto glass for insurance policyholders whose insurance companies or fleet companies use Safelite® to administer auto glass losses. The addendum is fairly straightforward and if you are a “participant” it is binding upon you unless you notify Safelite® within 10 days that you object to the changes in the new addendum. Of course, if you object to the addendum you effectively terminate your participation in the Safelite® network.
As reported in glassBYTEs on July 31, 2012 in an article titled “Safelite Releases Addendum to Network Participation Agreement”, Section 1.10 of the ADDENDUM states:
“1.10 Participant shall comply with each applicable insurance and/or fleet company’s program requirements or marketing guidelines, whether communicated by the company or by Safelite Solutions orally or in writing. Notwithstanding, Participant agrees and acknowledges that unauthorized use of insurance or fleet company trademarks, logos, or other intellectual property is prohibited. Further, Participant shall not offer, directly or indirectly, to any insurance agent or its personnel anything of value in consideration for the referral of work paid for from the proceeds of an automobile insurance policy.”
The section seems reasonable. If a participant wants to do work for either insurance or fleet companies that utilize Safelite® for handling glass losses, the participant shall comply with the “requirements or marketing guidelines, whether communicated by the company or by Safelite Solutions orally or in writing” for those companies that Safelite® provides administrative control over glass losses. How would Safelite® ever prove “requirements or marketing guidelines” that were communicated “orally” to a participant? It’s the last sentence in the addendum that I’m writing about today.
I find it interesting that the last sentence of Section 1.10 appears limited only to “any insurance agent or its personnel” by stating:
“Further, Participant shall not offer, directly or indirectly, to any insurance agent or its personnel anything of value in consideration for the referral of work paid for from the proceeds of an automobile insurance policy.”
My first question is do you think that Safelite® is also a participant, having signed the Network Participation Agreement and having to follow all of the sections of the agreement? If yes, then Safelite® has to follow the same rules as everyone else. That seems fair right?
I was also just wondering why the language of Section 1.10 refers only to “any insurance agent or its personnel”. Does the last sentence mean that you can provide something of value to an employee of a fleet company? Perhaps I’m missing something.
What I don’t understand is why Section 1.10 is limited only to insurance agent(s) and those who work for an insurance agent if what the section is attempting to do is to stop influencing auto glass repairs and replacements for insurance companies. Does Safelite® operate under the same rules that are laid out in Section 1.10?
Section 1.10 of the new addendum just doesn’t seem all that clear. Or maybe it is.