Posts Tagged safelite network

Just Sayin’ Blog – Network Participation Agreement – “Special Update”

  Cartoon courtesy of TomFishburne.com

 

“Can’t tell the players without a scorecard”… an old school expression but those words seem particularly relevant today, as one looks at recent events surrounding the subject of auto glass networks.

In my recent blog titled “Network Participation Agreement” from August 6, 2012, I discussed the ADDENDUM announced by Safelite® on July 20, 2012 regarding its www.SGCNetwork.com Network Participation Agreement.  It stated in the last sentence of Section 1.10 of the ADDENDUM, “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.” 

In that post, I also asked “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 guess that question entered the spotlight sooner than I could have imagined with the publication of the glassBYTEs.com™ article from August 23, 2012 titled “Safelite Funds Allstate Windshield Repair Marketing Material” written by Casey Neeley.

In that story, an Allstate consultant is quoted as saying, “Safelite approached us about creating marketing material for our agents to distribute and the first run of such materials was funded entirely by Safelite and provided to our agents”.

Now we get to the scorecard part because I have to wonder “which” Safelite it is that is funding promotional materials. Would that be Safelite® Solutions LLC, the self-proclaimed “third party administrator” of glass claims, or Safelite Auto Glass®, the self-proclaimed “largest vehicle glass repair and replacement organization in the U.S.” After all, both those entities are involved – but as noted in the prior blog, it is just not very clear about the role that Safelite® Auto Glass plays in the equation, either with the insurance carrier or its agents. If you follow the link at the end of this sentence, Safelite® refers to all of its organizations as “A Family of Companies” (*referenced from http://scheduling.safelite.com/companies.jsp).  

While this distinction, or lack thereof, is not at all apparent from any public information I find on this subject, one thing becomes crystal clear – the auto glass repair and replacement (AGRR) industry could certainly use a whole lot more transparency. In fact, one could make the case that much of the recent legislation efforts have been focused on creating such transparency in auto glass claims transactions, with particular attention, rightly or not, on Safelite® and its “Family of Companies”.

From the view of this blog, transparency only serves to benefit consumers in making informed claim decisions, making their policy dollars work to their fullest, and identifying safe auto glass replacement services.

I guess I have to rephrase my original blog question to now ask, “Do you think that Safelite® [Auto Glass] is also a participant, having signed the Network Participation Agreement and having to follow all of the sections of the agreement?”

One can only hope that in the interest of transparency and consumer informedness, the players involved make it quite clear about the roles and participation as pertain to Safelite® Auto Glass, an entity portrayed as separate and distinct from Safelite® Solutions LLC. And there is one organization that could answer that question today.

For the rest of us, the best course of action might be to continue to focus on the customer and provide exceptional value with outstanding transparency.

In the meantime, not a bad idea to keep the scorecard close by to recognize the players on the other team, and act accordingly.

Just sayin’……

 

 

 

 

 

 

 

 

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Just Sayin’ Blog – Network Participation Agreement

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.

Just sayin’……

 

 

 

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