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Here’s to 241 years of combined service excellence
This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.
Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.
Thank you for your many years of loyalty.
626 E. Elizabeth Ave., Linden, NJ 07036 Phone: (908) 925-6133
6 | A Bright Future for AASP/MA: Together We Drive Excellence by Douglas Begin
DIRECTOR’S MESSAGE
8 | What’s in It for Me? by Evangelos “Lucky” Papageorg
12 | ADALB Throws Negotiations Out the Window by Chasidy Rae Sisk
16 | Authentic Auto Body Acquires APC Auto Body to Launch First Family-Run MSO by Alana Quartuccio
20 | Retired Shop Owner Tom Rawson Cruises Through Retirement by Chasidy Rae Sisk
24 | CIC Conducts Conversations Centered on the Consumer by Alana Quartuccio
| Insanity at the ADALB: Are the Inmates Running the Asylum? by Chasidy Rae Sisk
32 | Kevin J. Gillespie of Langonet Auto Body
A Bright Future for AASP/MA: Together We Drive Excellence
AASP/MA has always stood as a pillar of support and advocacy for auto body professionals and consumers across the state. As we embark into this new year, I am both honored and humbled to take on the role of vice president and continue my duties as the Vendor Affinity Program (VAP) chair. My heartfelt gratitude goes out to each member who placed their trust in me through their votes.
Reflecting on the journey we’ve shared, it’s evident that AASP/MA’s strength lies in our unity and proactive stance. Over the past year, despite the myriad of challenges we faced, our association has shown remarkable resilience through our role in passing key legislation. We’ve navigated through insurance company infractions and ADALB inactions, always emerging
In 2024, our Vendor Affinity Program (VAP) saw extraordinary growth. By fostering strategic partnerships and cultivating mutually beneficial relationships with our vendors, we’ve not only enhanced our service offerings but also ensured that our members have access to top-tier resources and support. This growth is a testament to the collaborative spirit that defines AASP/MA. As we look forward to 2025, continuing this momentum is paramount. We must remain committed to nurturing these relationships, seeking new opportunities and ensuring our members receive unparalleled value.
However, the success of our association hinges on more than just strategic partnerships. It requires the collective effort of every member. The collision repair industry is in a constant state of flux, driven by technological innovations, changing consumer preferences and evolving regulatory landscapes. To stay ahead, we must be proactive. Each member’s active participation – whether through attending membership meetings, sharing insights or engaging in discussions – is crucial. It’s this proactive mindset that will enable us to anticipate challenges and seize opportunities.
Moreover, our association’s growth and sustainability depend heavily on our ability to recruit new members and sponsors.
continued on pg. 38
Jayce
Gregg
Membership Application 2025-2026
P.O. BOX 850210
Braintree, MA 02185
Phone: 617-574-0741
Email: admin@aaspma.org
Please complete this form and return to our office via mail or email with your dues payment. Thank You!
As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.
Yes � Please send me information regarding the following MONEY SAVING BENEFITS: � Healthcare plan � Dental, Vision plan � PFML savings program � Credit card processing � Grant writing/training � Google presence optimization � All benefits
PLEASE ENCLOSE PAYMENT WITH YOUR MEMBERSHIP APPLICATION
Check# : ____________ (IF collision shop please note your RS# on the memo line of the check) OR
CC #: ______________ EXP: ________/___________ CID: _________________
Name On Card: _____________________________________________ Signature: _____
Check here � to opt out of auto renewal using this credit card information for future renewal
Note: A 4 percent convenience fee will be charged for membership renewal via credit card transaction I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2025-2026 as provided for in this contract. *Membership Dues are for a twelve-month period commencing on your anniversary month of membership
REV 12/24 REFERRED BY _________________________ COMPANY_______________________________
SCAN TO JOIN!
Well, if you’re anything like me, you’re probably wondering where January and February have gone! AASP/MA hit the ground running and is gearing up for another successful year. More shops are moving forward from “Breaking Free in ‘23” to “Getting More in ‘24” and positioning themselves to “Thrive in ‘25.” These goals are no longer just hopes and aspirations for many member shops in Massachusetts. They’ve become a mantra – a vision of attainable success for collision repairers who apply the knowledge and make use of the support, benefits and camaraderie provided through membership and participation.
2025 truly holds the potential to be a turning point for hundreds of shops across the state that understand joining an association shouldn’t be driven by the shallow “What’s in it for me?” mentality. Membership is the vehicle that facilitates continuous improvement by fostering mutually beneficial relationships – the
What’s in It for Me?
foundation of thriving success. Our association connects individuals who wouldn’t normally interact, creating opportunities for idea-sharing that lead to collective success.
AASP/MA does a lot for both consumers and collision repair shops, as well as affiliated industries. However, it’s important to remember that it’s a twoway street. Those who join the association solely driven by their concern for “What’s in It for Me?” don’t truly reap the full benefits of the relationships developed with colleagues who genuinely want everyone to succeed. Real success stems from education – staying current on technological advances, repair procedures, legislative changes that benefit consumers and collision repairers and actively supporting such legislation when needed. Shops that participate and implement what they’ve learned see the benefits more quickly. They understand that their responsibility is to contribute, rather than
continuously ask, “What’s in it for me?”
I’ve heard time and again that the knowledge and relationships gained by attending local and regional meetings are key reasons why many shops are seeing steady improvement in their businesses.
AASP/MA provides valuable resources, not only through local interactions, but also by participating with other state and national associations. This network helps filter important information and makes it accessible in ways that can lead to meaningful changes – changes that positively impact your business, your life and the lives of your employees. That’s an invaluable answer to “What’s in it for me?”
For those who need more tangible, financial examples of membership benefits, consider the programs that can nearly eliminate the cost of your yearly membership. We offer a cost-effective healthcare program, dental and vision care, IT and consulting services through our Vendor Affinity Program (VAP) sponsors and money-saving discounts on credit card processing, just to name a few. As a member, your shop is also listed on our website’s map, making it easier for potential customers to find you.
Ultimately, we all understand that it’s about the money. Whether it’s labor reimbursement rates, parts discounts, P&M issues or procedural reimbursements, AASP/MA will continue to address these issues on behalf of all shops – members or not. There’s a saying: “If you’re not part of the solution, you’re part of the problem.” Being an “ALLIANCE” member is a crucial part of the solution. Every shop that renews their membership in 2025 understands the importance of adding their voice to
by Chasidy Rae Sisk
ADALB Throws Negotiations Out the Window
Merriam-Webster defines the word negotiate as “to bring about through discussion and compromise,” yet some members of the Auto Damage Appraiser Licensing Board (ADALB) appear uncertain what constitutes a negotiation, despite the fact that these two terms appear a half dozen times in Regulation 212 CMR 2.00 et seq.
Although the ADALB’s January 21 meeting included a brief review of the proposed amendments to the regulation, that discussion focused on revisions to 2.02(7) Conflict of Interest and 2.02(8) Revocation or Suspension of a License.
The apparent uncertainty over what constitutes a negotiation arose during the review of six complaints filed by auto body shops against insurance appraisers, a portion of the meeting that also elicited confusion related to what constitutes a complaint and what it means for the Board to move forward with a complaint.
One complaint accused the appraiser of failure to negotiate, and when Smith indicated that the appraiser’s refusal to pay the amount requested by the shop did not constitute a failure to negotiate, Johnson objected that “Nope, I’m not paying for that” is not a negotiation. Board member Carl Garcia (Carl’s Collision Center; Fall River) suggested that “part of the conversation is a better description of ‘negotiation.’”
As the Board discussed a complaint related to an appraisal being altered without negotiation after it had been “written and locked,” Attorney Michael Powers veered completely off topic from the issue at hand. He noted that the vehicle owner had paid the difference between the shop’s invoice and the insurer’s short pay, questioning why a complaint was even filed.
“So, if an appraiser doesn’t pay properly to repair a car or does not negotiate properly, and I back charge the customer and get the money, that means the appraiser did not break the law?”
Board member Bill Johnson (Pleasant Street Auto; South Hadley/ Belchertown) asked. ““You’re saying the I [licensed insurance appraiser] didn’t break the CMR because I [the shop] got paid all of
my money [from the vehicle owner]?” Getting paid doesn’t negate the fact that the appraiser shouldn’t have done what he did.”
Chairman Michael Donovan expressed the belief that the complaint was related to the monetary issue and therefore had no place being brought before the Board. “Everything we do is a money issue – the crux of the matter is the appraisal was changed,” Johnson vented his exasperation. “Somebody wrote an appraisal, locked it and then changed it with no prior negotiation. That’s a violation of the CMR.”
At several points during the review of complaints, Board member Peter Smith (MAPFRE) expressed the need to “get the other side of the story.”
“That’s what moving forward means,” Johnson agreed. “We notify the employee and ask questions to get the other side of the story.”
The Board voted unanimously to move two complaints forward, and one was tabled due to confusion surrounding the issue presented within it. The remaining three complaints were dismissed with the two auto body representatives effectively voting to move forward, while the insurers voted to dismiss; in all three instances, Chairman Michael Donovan sided with the insurers.
The ADALB is tentatively scheduled to reconvene on March 25 at 11am in the DOI’s new location at One Federal Street on the 7th floor. Information pertaining to the ADALB’s meeting schedule and planned agenda is typically posted by the Friday prior to the meeting at bit.ly/ADALBagendas
AASP/MA members are strongly encouraged to listen to the recording of the January 21 meeting in the Members Only section of aaspma.org for a glimpse into the inner workings of the ADALB. View the meeting agenda at bit.ly/ADALB012125. More detailed coverage of this meeting appears in the February issue of Damage Report, AASP/MA’s members-only newsletter.
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by Alana Quartuccio
Authentic Auto Body Acquires APC Auto Body to Launch First Family-Run MSO
Authentic Auto Body owners Steve and Gabrielle Proia believe strongly in delivering nothing less than quality, integrity and customer care. That passion is instilled in everything they have done with their body shop business since they opened its doors in 2016.
Now, they have strengthened Authentic Auto Body’s (Holliston) position in the auto body repair industry further with the acquisition of APC Auto Body (Dartmouth), a shop that has been a leading name in precision auto body repairs and exceptional customer service. Sharing strong family values and a commitment to quality were just some of the reasons the Proia family felt APC Auto Body, along with its stellar reputation, loyal employee and customer base, was such a good match.
“With the growing demand for high-quality collision repair services, this acquisition allows us to combine resources, expertise and technology to better serve our customers,” states Steve Proia, president of Authentic Auto Body. “APC Auto Body’s strong foundation and talented team make this partnership a seamless fit.”
“This acquisition represents more than a business decision –it’s a commitment to continuing the legacy of excellence that both Authentic Auto Body and APC Auto Body have upheld,” adds Gabrielle Proia, co-owner of Authentic Auto Body. “Together, we are creating the first family-run MSO that prioritizes quality, integrity and customer care.”
Proia first got his hand in the collision repair world when he was 13 years old. He started sweeping floors and worked his way through each and every position into management. He obtained his appraisal license and managed a few shops before he and his wife decided to take a leap of faith, purchasing a small shop manned by one person which they turned into the successful business it is today – a family-run premier shop specializing in OEM-certified repairs committed to delivering top-quality collision repairs, exceptional customer service and unmatched craftsmanship.
Proia reflects on their humble beginnings. “The former shop owner was probably doing about two or three cars a week and roughly $100,000 in annual sales. Believe it or not, our plan was to just try to double that amount. When we were closing on the business, we had about seven cars in the lot. In our first month, we did close to $100,000 in sales. We realized we were on to something, and we grew from there.”
Within two years, Authentic Auto Body blossomed from a small 4,000 square foot shop into a new, 14,000-square-foot building with a team of 12 employees.
The Proias remained open to further growth opportunities and began to explore strategic options. This led to an introduction to their financial partner, Patrick Keefe, managing partner of Envest Capital.
Keefe recognized Steve’s entrepreneurial spirit and the opportunity he saw in the business and the Massachusetts market.
“We are thrilled to support Authentic Auto Body in this strategic acquisition of APC Auto Body,” shares Keefe. “Both companies share a deep commitment to quality, integrity and customer satisfaction – values that define a true family-run business. While we might help financially, Steve and Gabrielle are truly the
brains behind the operation. Their vision, dedication and leadership drive this organization forward, and we stand behind them with full support as they continue to grow their family-built business. This acquisition not only strengthens Authentic Auto Body’s market position but also preserves the legacy of excellence that APC Auto Body has built over the years. We are excited to be part of this journey and look forward to seeing their continued success.”
APC Auto Body will maintain its current name and brand as Steve believes it’s critically important to maintain the brand and the legacy of the company that its former owners spent decades building.
Al and Lisa Correia, former owners of APC Auto Body, shared their thoughts on the acquisition.
“After years of building APC Auto Body into a trusted name in the community, we are confident that Authentic Auto Body is the perfect partner to carry on our legacy. This transition is bittersweet, but we take comfort in knowing that the values we’ve upheld –quality craftsmanship, exceptional customer service and integrity – will remain at the forefront. Steve and Gabrielle’s leadership and vision align perfectly with what we’ve built, and we’re excited to see how they will continue to grow and elevate the business. We are grateful to our loyal customers and employees who have been a part of this journey and look forward to seeing the next chapter for APC Auto Body under their care.”
Both Authentic Auto Body and APC Auto Body are longtime members of AASP/MA, and Steve intends for it to stay that way. Being part of the association helps them stay in touch with industry members in the community, learn about what is currently taking place, what the goals are and how shops can work as a community to get there. Steve commended AASP/MA for the work they’ve been doing to push for labor reimbursement rate increases, but he knows there is much more still to come and is excited to be a part of it.
(From L-R): Gabrielle Proia, Steve Proia, Al Correia and Lisa Correia.
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by Chasidy Rae Sisk
Retired Shop Owner Tom Rawson Cruises Through Retirement
Over the years, a multitude of collision repair professionals have left their mark on the Massachusetts auto body industry through their work with associations, their dedication to performing proper repairs and their devotion to their customers. New England Automotive Report resumes its mission to catch up with retired repairers to find out what they’ve been doing since they turned over their shop keys. This month, we caught up with Tom Rawson, former owner of Rawson Auto Body in Wakefield.
New England Automotive Report: When did you first get into the industry?
Tom Rawson: I was into cars as a kid, but I got into the field professionally by accident – not literally. I was working as a tow truck driver, and one day when business was slow, I asked my friend, a co-worker, to fix a dent. He said, ‘Knock yourself out,’ and the rest was history. This was around 1971 shortly after I got married. I worked in two shops for short periods of time before I started wondering why I was working so hard for someone else when I should be doing it for myself. My wife, Beverly, and I talked it over and decided to take the plunge.
NEAR: Tell us about your shop. How long did you own it?
TR: With Beverly’s support, I borrowed a couple thousand dollars to open a three-bay shop, Rawson’s Auto Body, with no customers. Fortunately, I was active with the Wakefield Elks Lodge, so I started taking on side jobs and building a reputation for myself. We grew out of that spot and moved to a larger place, but it wasn’t the right opportunity; the building itself was old and rundown, plus it was too expensive, so we moved to the location on Broadway Street in Wakefield around 1982 and stayed there until we retired 12 years ago. We started with nothing and grew the business into a family-operated shop where my younger son worked when he became an adult.
Over the years, we built an impressive customer base. By the time we retired, our customers included the grandkids of some of our original customers. My sister managed a dance studio in town, and when her students grew up, they came to us for repairs too. We also took on about 95 percent of the municipal work in town; we repaired vehicles for the fire department, the police cruisers, the Department of Public Works’ trucks… Being in business that long was an amazing experience.
NEAR: How did you get involved with the association (MABA at the time)?
TR: I got involved with MABA from the very beginning – we actually started the North Shore chapter in my shop. My friend Chris Muise became the executive director and asked what I thought, so I said, ‘Let’s set it up at my shop.’ And we got a couple local businesses involved, and the rest is history. Every month, we’d hold a meeting and get anywhere from 20 to 50 people showing up, and we were all singing the same song: we need more money.
NEAR: An insufficient labor reimbursement rate is still a hot topic. How did that motivate MABA back then, and what did the association do about it?
TR: We were sick of working for nothing! When I started in the business, labor rates were around $22 an hour…and then they only moved up to $26-28 over the next 15 to 20 years. In the beginning, we gave things away that we were entitled to be paid for. It was unheard of to ask for time for p-pages, and every shop I knew was losing money on paint and materials. The insurers would only pay $100 for what cost us $200 or $300, but I think what upset a lot of us the most was that, although we were running body shops, we were also mechanics capable of changing suspension parts and other items, not just quarter panels, fenders and doors. And if a car was towed into a mechanical shop, they would pay them $75 to $100 an hour for doing the same thing. It wasn’t right, and something had to change.
We knew we had to do some lobbying and get the government involved. Unfortunately, the insurance industry has deeper pockets. We had some good lobbyists, but the bills would only get so far on the floor before being thrown
CIC Conducts Conversations Centered on the Consumer
Industry professionals make their way to the Collision Industry Conference (CIC) multiple times a year for many reasons. But one thing is for certain – everyone who takes the time intends to serve the industry and ultimately, the “empty chair” – a symbol for the vehicle owners and families who this industry serves to protect.
CIC Chairman Dan Risley reminded the audience of that message as he kicked off the first event of 2025 in Palm Springs, CA in January.
“It’s a constant reminder to us that the consumer is the end-user,” he said of the “empty chair,” a shining symbol that has been the heart of this conference since former CIC Chairman Jeff Peevy hauled a chair onto the stage five years earlier to make that very point.
The sessions that followed were centered around educating for the sake of the “empty chair.”
The Repair Process and Procedures Committee (of which AASP/MA Executive Director Lucky Papageorg is an active participant) recognized the obstacles that lie in the way of measuring for liability, resulting in an engaging panel hosted by co-chairs Kye Yeung (European Motor Car Works; CA) and Barry Dorn (Dorn’s Body & Paint, VA).
Perhaps the largest challenge lies in the
fact that people older than 45 still practice the imperial measuring systems, while many under the age of 45 have embraced the metric system.”The problem that we see here is some of the older technicians have not adapted to the metric system,” stated Yeung. “There may be errors as a result of them not understanding the system.“ Rulers and measuring tape are extremely accurate and aid in repairing a car if used properly, but “there’s a huge amount of time savings and documentation” via the enhanced tools available today.
The issue isn’t just with having a proper way to measure; “one of the struggle points that we have is the pushback of compensation,” according to Yeung. “I find it amazing that all of a sudden the industry accepts pre-scanning, but they don’t embrace pre-measuring a vehicle. I’m encouraging all to understand that before you start a repair, it needs to be measured so you can comprehend what the damage is. That’s how you can ensure the ‘empty chair’ is taken care of.”
Technology has come a long way in assisting with this task, so there’s “really no reason a shop owner today does not document a measurement, whether it’s before or after the repair has been done,” according to Yeung.
Ensuring a proper repair gets done lies in pre-measuring, according to panelist Justin Lewis (Accurate Auto Body; WA) who suggested that OEMs consider issuing a position statement. “You might be disguising structural damage that you may not be aware of if you are going by the technician’s eyeball” and could potentially be returning an unsafe vehicle back to its owner.
Lucid Motors plans to make having a visual measuring system a requirement and will be issuing a position statement this May, according to panelist Matt Pitta. “It would be helpful to the shops to have some guidance in how to put things back to preloss condition,” adding that he hopes other OEs will follow suit.
Dorn continued to stress the liability factor. “I don’t think any of us want to be the cautionary tale. In order to fix [something properly], you have to know what the dynamic was and how we got there.”
Air quality management is a major concern to the south coast. As a result, the South Coast Air Quality Management District (AQMD) has proposed a two-part plan to phase out the use of specific solvents in low-VOC paint manufacturing in that area of California. Although it’s an issue
CIC Chairman Dan Risley
by Alana Quartuccio
specific to a local region, “this is something that everybody needs to understand,” Parts and Materials Committee Chair Aaron Schulenburg stated as he introduced a panel of experts to educate the audience on what these changes could mean for the industry.
Low-VOC products used in this region contain t-BAC and pCBtF, which means residents are exposed as a result of the 3,000 automotive body shops in the area,
according to Heather Farr of the South Coast AQMD who shared the two-phase timeline for when coating manufacturers and the pCBtF are allowed to be sold and used through with both phases to be completely implemented by 2030.
Panelist Gene Lopez (Seidner’s Collision; West Covina, CA) foresees that changing refinish technology will bring challenges and benefits. “There could be some issues around the equipment that we’re currently using, as much as on the spray gun and some of the spray gun technology.” He believes painters may have to relearn “how to use the higher VOC limit [materials]. But many of you may be happy because that material was really easy to spray.” Lopez expressed concern that 2030 isn’t very far off and the technology that will be used then is not available now.
As panelist Jeff Wildman (BASF) explained, “Paint companies do make different products for different parts of the
country to meet the regulations, and that’s really what we focus on when we develop these products. We have to make sure they meet regulations for that country or that state. Because not only do we have different products by state here in North America, but we also have different products locally. We try to standardize those as much as possible, but we have to meet the local regulations. So, as we see the changes coming in Southern California, we will have different products coming in. For phase one, we’re going to be able to use products that exist in other markets today – whether it be other parts of North America or those coming from Europe, we’ll bring them in just for Southern California. Phase two will bring all new products.”
The next CIC is set for April 30-May 1, 2025 in Richmond, VA. Learn more about the next event and how to register at ciclink.com.
What a recent auto repair shop client had to say:
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Heather Farr of the South Coast AQMD
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It’s commonly said that “insanity is doing the same thing over and over again and expecting different results,” but how crazy is it to repeat the same actions and yield NO results? Yet, that’s exactly what happens at the Auto Damage Appraiser Licensing Board (ADALB) meetings time and time again!
Seated under the Division of Insurance (DOI), the ADALB is charged with the regulation of motor vehicle damage appraisers in the Commonwealth. Although the Board is charged with a laundry list of duties, the bulk of its agenda in recent years seems to be consumed with two specific responsibilities: maintaining standards for appraisers’ conduct and reviewing complaints filed against Massachusetts appraisers; however, the effectiveness of their activities is certainly worth closer scrutiny.
While the ADALB has disseminated a handful of advisory rulings, the process is arduous and circular. For example, in December 2023, Board member Bill Johnson (Pleasant Street Auto; South Hadley/Belchertown) first suggested that a notice be sent to all insurance companies and independent appraisal firms reminding them that they are allowed three days to inspect and complete the paperwork, else they’ll be subject to review by the Board. He presented a draft of an advisory ruling on the topic to the Board in March 2024.
When Johnson requested an update on the advisory ruling during the May meeting, Attorney Michael Powers warned, “It’s a whole process, and it’s going to take a while; advisory opinions don’t come back immediately. It usually takes months before you
hear back.” The draft, with Powers’ edits, was finally added to the September 2024 meeting agenda, and during the Board’s discussion, Board member Peter Smith (MAPFRE) raised objections to “the language around exceptions and delays,” creating a delay of his own as he promised to provide written questions to be reviewed at the next meeting. The topic has yet to be revisited in the two meetings that have since occurred.
But that’s just a minor example of the ADALB’s ineffectiveness.
Since its meeting on January 23, 2024 – for over a year – the Board has spent a significant amount of time reviewing proposed amendments to 212 CMR 2.00 et seq, the Board’s regulation which dictates licensing requirements and standards for appraisers, duties of insurers and repairers and procedures for appraisal conduct, in addition to identifying the penalties for violations, but that doesn’t seem overly bizarre until one looks backward and realizes that previous iterations of the Board have already discussed and debated this document at length. How can a document containing less than 4,500 words take over NINE YEARS to revise?
The exhaustive review began in January 2016 (which was the first time that revision to the CMR had been considered in eight years), and the ADALB members seated at the time carefully critiqued the regulation, suggesting revisions to update language to make it relevant to the times, such as replacing “manual” with “database,” removing the word “written” in the definition of appraisal and adding definitions for Board, insurer, repair shop and repair shop appraiser.
More extensive language changes were proposed for the sections pertaining to conflicts of interest (specifically related to drive-in claims centers) and temporary licensing, but the most substantial revisions impacted 2.04(1)(e). Here, the Board stressed the importance of adhering to OEM repair procedures by proposing a change from “may” to “shall.” Additionally, verbiage was added regarding the parts used in a repair to specify “that certain parts, including but not limited to; used suspension and steering parts that contain wearable components may affect the operational safety of the vehicle” and assigning responsibility to the insurer for paying for and returning those parts; it also explicitly stated, “Costs associated with the shipping and handling or parts, including cores, shall not be considered overhead costs of the repair shop either and shall be listed on the appraisal and negotiated.”
To 2.04(1)(j), they also added “When a completed work claim form is utilized, the appraiser representing the insurer and the appraiser representing the repair shop shall negotiate all costs without regard to the direct payment plan/referral shop program.”
Ultimately, the then-seated Board cast a unanimous vote to move forward with submitting their final recommended changes for review at the DOI on October 4, 2016. (The entirety of the 2016 Board’s proposed changes can be viewed on those meeting minutes, available at bit.ly/CMRrev2016.)
…And then nothing happened for nearly half a decade.
After multiple inquiries, an update on the Board’s suggestions finally arrived on February 8, 2021 via a letter addressed to current ADALB Chairman Michael Donovan in which the Office of the Secretary of Administration and Finance (A&F) cited “administrative oversight, the transition of several attorneys […]
by Chasidy Rae Sisk
and the extreme operational burdens” of COVID-19 as the causes for the lengthy delay. The Board was instructed to consider four key issues raised by the Division of Insurance in an allegedly-misplaced December 2016 letter, but the correspondence also indicated that since three ADALB members (both insurance representatives and the Board’s chair) had been replaced since the previous vote, it was necessary for the current ADALB to revisit the original amendments and submit updated recommendations.
Interestingly, the DOI’s objections to some of the language within the recommended changes appear to have been made at the behest of the Automobile Insurance Bureau (AIB) and Massachusetts Insurance Federation (MIF), which contended that the “ADALB lacks the statutory authority to regulate the claims handling procedures of insurers as that is the responsibility of the DOI. The Division agrees with both the AIB’s and MIF’s comments in this regard and does not recommend the proposed changes,” the letter stated.
In response, then-Board member Rick Starbard (Rick’s Auto Collision; Revere) made an astute observation that clearly demonstrated where the DOI’s loyalties lie: “The DOI’s comments continually reference the MIF and the AIB, but nowhere in here do they reference SCRS, AASP, I-CAR or anyone that actually fixes or manufactures vehicles. The only people that seem to have had any input into this are the people who pay to repair the cars, not anyone who has anything to do with making or repairing them.
“If we go through that process again, we could have another Board by the time this thing actually gets voted on and then have it kicked again,” Starbard unwittingly foretold the future. “Are we going to be 10 years out before anything gets done?”
And thus the hashing out of minutiae and arguments about semantics began anew with discussions rife with contention, disputes and “compromises” during the second review. Although the group originally agreed to simply review and resolve the DOI’s four questions, when a consensus was reached on that regard, Smith and then-Board member Samantha Tracy (Arbella Insurance) issued a series of questions and concerns related to the proposed changes, thus essentials sending the Board back to the drawing board.
Similar decisions were made throughout the process, although the conflict of interest verbiage regarding drive-in claims centers and the addition to the completed work claim form were removed.
Additionally, the language surrounding payment for used parts was tweaked to only require payment by the insurer “when an insurance company specifies the use of used, rebuilt or aftermarket parts, in keeping with the provisions of 211 CMR 133.04 and these parts are later determined by both parties to be unfit for the use in the repair,” also adding the caveat “unless the repair shop is responsible for the part(s) being unfit.”
During the 15-month review period, those small changes added up to a big difference, causing AASP/MA Executive Director Lucky Papageorg to exclaim, “You’ve taken the teeth out of what was a decently written piece of regulation. It had to have the ambiguity taken out, but you’ve gutted it!”
Notably, the 2022 Board’s proposal included an increase in the
claim amount up to which an insurer could exclude a claim from requiring an appraisal, raising the amount from $1,500 to $2,500 via 2.04(1)(a), a move discussed by the 2016 Board who could never reach a consensus on a reasonable amount. These debates lasted from May 2021 until July 2022 when a three-to-one vote allowed the Board to submit. (The entirety of the 2022 Board’s proposed changes can be viewed on those meeting minutes, available at bit.ly/CMRrev2022.)
“This thing has been hanging around long enough. Isn’t five years long enough to delay the process?” Johnson asked during the process. Apparently not!
Although a year passed without a response from the DOI regarding the proposed amendments, the replacement of two Board members elicited an update at the second meeting in which Board members Carl Garcia (Carl’s Collision Center; Fall River) and Vicky Wei Ye (Bos Insurance Agency) replaced Starbard and Tracy. General Counsel for the DOI was quick to inform Attorney Powers that the ADALB’s past efforts were merely an exercise in futility.
This never-ending song and dance would be enough to drive anyone mad, and the timing of the DOI’s feedback seems less-than coincidental, as Johnson observed upon learning that the ADALB would need to go back to the drawing board: “This is the third time the Board is reviewing these proposed amendments, and each time we approve them and submit them to Administration and Finance, we never receive a response until the composition of the Board
changes again. I don’t know if that’s by design or if that’s just a coincidence, but by my recollection, there really isn’t anything earth shattering in these CMRs; they were just more of a reflection of changing with the times and upgrading definitions.”
While the largest portion of the current Board’s time has been spent revisiting the definitions thus far, it’s worth noting that, at the most recent ADALB meeting in January, Johnson objected to Smith’s suggestion to strike 2.02(8) which indicates that an appraiser’s license can be suspended or revoked for “failure to comply with 212 CMR 2.00.” Although Smith indicated that it’s simply stating the obvious, Johnson agreed, “It’s 100 percent restating the obvious, but I think we need to keep restating the obvious. That’s why we’re here. We wouldn’t need this Board if everyone followed the rules.”
Will the third time be the charm for Regulation 212 CMR 2.00 et seq? Perhaps, but all the time spent reviewing the proposed amendments ad nauseam is nonsensical if the ADALB refuses to actually enforce the standards it is meant to uphold in the first place! Its handling of complaints suggests that this review may be a moot point – even if the DOI ever actually approves the Board’s suggested revisions.
Stay tuned to next month’s New England Automotive Report as we continue our analysis of the ADALB’s actions (and lack thereof) through their complaint handling process.
Kevin J. Gillespie of Langonet Auto Body
The Massachusetts auto body community was saddened to learn of the passing of Kevin J. Gillespie of Langonet Auto Body (Agawan) who passed away suddenly January 11 at the age of 56.
Gillespie dedicated 36 years of his life to Langonet Auto Body (a longtime AASP/ MA member shop), where he was not only a skilled professional but a cherished member of the team. He was known for his work ethic, his kindness and sense of humor. He touched the lives of many with his genuine heart and warm smile.
Langonet Auto Body issued the following statement on the loss of their team member:
“Since 1993, Kevin has worked for Langonet. He was incredibly intelligent, compassionate and strong-willed. Naturally, Fridays were his favorite day since that’s
when he would think of his clever jokes. All in all, he was a highly gifted body guy who taught many of us during his time here. His capabilities were unparalleled with
his ability to handle any job, any vehicle or any issue. Without him, things won’t be the same. He undoubtedly belonged to the Langonet family. Saying he will be missed is an understatement.”
Gillespie is survived by his daughter Nicole Gillespie, as well as his siblings Robert Gillespie, Jr and wife Annmarie; Kenneth Gillespie and fiance Penny; Karen Gillespie; Denise (Redin) Gagnon; Charles “Chuck” Redin and wife Jessica; and Kristin Goss, nieces, nephews and an extended family of friends.
AASP/MA and New England Automotive Report send their deepest condolences to the Gillespie family and Langonet Auto Body team.
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Dear Victor: Shutting Down Insurer Misinformation on Paint & Materials Reimbursement for Good
Three insurers – MAPFRE, Hanover and Safety Insurance – are alleged to be sending a November 29, 2006 letter from the Auto Damage Appraisers Licensing Board (ADALB) to repair shops as justification for refusing full paint & materials (P&M) reimbursement. The letter claims that shops must prove that the “dollars times hours” formula does not adequately cover their P&M costs before they can use an alternative method.
This argument is completely baseless. First, the 2006 letter was never an official advisory ruling or regulatory change. It was never formally adopted as binding guidance, yet insurers have taken this document and are using it as a weapon to suppress legitimate P&M reimbursement claims. Second, and more importantly, the language of 212 CMR 2.04(e) has changed since 2006, making this letter even less relevant than it was before. Insurers who continue to cite it are either willfully ignoring the updated law or relying on misinformation to shortchange shops.
The Language Has Changed – The 2006 Letter is Irrelevant
The 2006 language insurers are relying on stated:
“With respect to finishing material, if the formula of dollars times hours does not adequately reflect the cost of a particular repair, a published manual or other form of documentation shall be used.”
By contrast, the current version of 212 CMR 2.04(e) reads: “With respect to paint, paint materials, body materials and related materials, if the formula of dollars times hours is not accepted by a registered repair shop or licensed appraiser, then a published manual or other documentation shall be used unless otherwise negotiated between the parties.”
This change is critical. The phrase “if the formula does not adequately reflect the cost” has been completely removed, meaning that shops no longer have to “prove” the formula is inadequate. The updated language makes clear that if the formula is not accepted by the shop or appraiser, they simply move to a published manual or other documentation – no burden of proof is required. Insurers citing the 2006 letter are pushing a legal argument that no longer exists in the current regulation. The bottom line is simple: The 2006 letter has no legal standing under today’s regulation, and no shop should be pressured into proving what the law no longer requires.
Getting Paid Fairly for Paint and Materials
The first step is to know the law. The rule 212 CMR 2.04(e) clearly states that shops do not have to accept the insurer’s formula. If a shop does not accept it, they can use other documentation. There is no requirement to prove that the formula is wrong. If an insurer says otherwise, they are ignoring the law.
Next, challenge the false burden of proof. Insurers may say that shops have to prove the formula is not enough, but that’s not true anymore. The Advisory Ruling ADALB #97-98-1 (November 5, 1997) says that P&M must be listed at full retail price and must include sales tax. The law no longer indicates that shops may have to prove the insurer’s formula is wrong. The shop can choose not to use it – end of story.
Then, use your own documentation. If a shop does not accept the formula, they can use:
• Industry-recognized guides like MOTORS or Mitchell.
• Invoices from paint and material suppliers that show real costs.
• Paint manufacturer recommendations that detail the proper materials needed.
• P&M invoices from body shop management systems, such as: PMCLogic™, 3M RepairStack™ and EagleMMS™.
There is no rule that says a shop must use the insurer’s preferred guide. If an insurer says only one guide is allowed, they are wrong. A shop’s documentation is just as valid as what the insurer uses and two shops don’t have to use the same guide or accept the same rates.
Shops must also demand full retail pricing. Paint and materials are goods that are sold as part of the repair, not just a service. This means:
• They are taxable at full retail price under Massachusetts law.
• Insurers cannot force shops to take a lower rate just because they want to save money.
It is also important to hold appraisers accountable. 212 CMR 2.04(e) says that appraisers must list all materials needed to bring the car back to its pre-accident condition. If an insurer tells an appraiser to ignore this rule, the appraiser may be breaking the law. Shops can file a complaint with the ADALB or seek legal remedies against the appraiser and/or insurance carrier under M.G.L. c. 93A.
Finally, use the final bill to the customer as proof. The most important document for P&M reimbursement is the final invoice because it shows what was actually used on the repair and passed onto the customer. Shops should:
continued from pg. 35
• List all P&M charges clearly at retail price.
• Help customers demand full payment from their insurer. Insurance companies are more likely to quickly settle with the vehicle owner rather than pay the shop correctly. This is why supporting the customer in getting the right payment is critical.
With the law on their side, repair shops should not allow insurers to manipulate outdated documents to deny proper P&M reimbursement. The November 29, 2006 letter from the ADALB holds no legal weight under today’s regulations, yet some insurers continue to misuse it in an attempt to shift the burden of proof onto shops. The reality is simple: shops do not have to prove that the “dollars times hours” formula is inadequate. If they don’t accept it, they can use a published manual or other documentation – end of discussion.
To provide historical context and legal clarity, we turned to Victor Fanikos, former legal counsel to the ADALB and a key figure in shaping 212 CMR 2.04(e). With decades of experience navigating the evolution of P&M reimbursement, Victor breaks down the real history behind these regulations, debunks the insurers’ false arguments and explains exactly how shops should respond when faced with these bad-faith tactics.
Dear Victor,
Some insurers – Hanover, MAPFRE and Safety – are apparently circulating a 2006 letter from the ADALB to argue that repair shops must prove the “dollars times hours” formula is inadequate before using alternative Paint & Materials documentation. One glaring issue? The language it relied on in 212 CMR 2.04(e) has since been amended.
Given this, could you clarify how the ADALB became involved in P&M reimbursement and how this issue developed over time? Now that the regulation has been updated, does this 2006 letter hold any relevance today? Looking forward to your thoughts.
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Victor Fanikos: The Board should have never gotten involved in P&M outside of their scope in regulating the appraisal process. In my opinion, it was a mess then, and it’s still a mess now. The ADALB’s role is to regulate appraisers, not to dictate pricing or reimbursement methods. But shops were getting short-paid, and insurers weren’t keeping up with rising costs, so the issue kept coming back to the Board.
It all started over sales tax. Back in the 90s, shops were being told that P&M weren’t taxable, which made no sense. There was a push, and the Board issued Advisory Ruling 97-98-1, which clarified that P&M had to be listed at full retail price and taxed accordingly – because they weren’t just a cost of doing business; they were a product being sold. That ruling was revised in 1998, but the principle stayed the same.
And let’s be honest. Those three insurers, MAPFRE, Hanover and Safety, have always been a problem when it comes to P&M. They’ve been fighting reimbursement increases for decades. Back in the 1990s, they used an arbitrary $25-per-paint-hour formula, completely ignoring how material costs were changing. Shops were dealing with the shift from single-stage paints to two- and three-stage refinishing, plus higher costs for toners, clear coats, blending, and regulatory requirements that they upgrade their spray practices. But insurers kept using outdated numbers and refusing to adjust.
Now, looking at this 2006 letter – I’ve never seen that letter in my life. I’m familiar with the other two rulings, but this? This is not an advisory ruling. There is no CMR change. If it had been a real regulatory change, it would have gone through public hearings and been properly documented. It wasn’t. And yet now, these same insurers are waving it around like it has authority. It doesn’t.
The best thing shops could do back then – the only thing they really could do – was take their invoices and prove that the amounts they were getting paid were insufficient.That still might be the best thing you can do today, shops should be saving all their receipts and invoices. Show what you actually pay for
materials. The insurers have never liked it, but the law is on your side.
Shops need to educate the Board. That’s how the Board has historically been able to guide the regulations. If shops don’t push back, these issues won’t get addressed. That’s why it’s important to file complaints, submit documentation and make sure the Board sees what’s really happening.
But as for this 2006 letter? It was never an official ruling. And even if it had been, it’s meaningless today. The language of 212 CMR 2.04(e) has changed. Shops do not have to prove anything. If they don’t accept the insurer’s formula, they can use a published manual or their own documentation – end of story.
Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or via email at spreston@coveralllaw.com
continued from pg. 6
The benefits of AASP/MA membership are manifold, ranging from educational resources and networking opportunities to advocacy and industry representation. Yet, these benefits can only be amplified with a growing and diverse membership base. I urge every member to be steadfast in their recruitment efforts. By sharing the value of AASP/MA with peers and potential sponsors, we can expand our reach, enrich our community and amplify our voice within the industry.
The future of AASP/MA is indeed bright. As we navigate 2025, several key initiatives are set to shape our trajectory. First, we will invest in the newly-formed AASP auto damage appraisers licensing training course to equip our future members and member shops alike with the knowledge and skills needed to excel in a rapidly evolving industry. From hands-on classes to future digital training modules, our offerings will be diverse and tailored to meet the unique needs of our members.
Secondly, we will amplify our advocacy efforts. The collision repair and auto body industry is subject to numerous regulations, and it’s imperative our members’ voices are heard. Through strategic lobbying and active engagement with policymakers, we will strive to influence decisions that impact our industry, ensuring a favorable
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Finally, we will focus on fostering a sense of community. By organizing events, we will create spaces for members to connect, share experiences and build lasting relationships. These connections are the lifeblood of our association, driving collaboration and innovation.
In conclusion, the state of AASP/MA is strong, and our outlook for 2025 is overwhelmingly positive. Together, as a united and proactive community, we will continue to drive excellence, navigate challenges and seize opportunities. I extend my deepest appreciation to every member for their unwavering support and dedication. Let us embrace the future with optimism, knowing that together, there is nothing we cannot achieve.
Here’s to thriving in 2025!
continued from pg. 20
out. I learned a lot about the political lobbying system and how hard people have to work to get very little movement. But we did everything we could. I would travel to Boston alongside many other shops, so we could flood the halls of the State House and lobby our representatives and senators to try to make a difference for our businesses. Fortunately, my wife was the backbone of our shop. There was nothing she couldn’t do except straighten frames; she ran the office, ordered parts and held it all together while I was out rallying with the association.
NEAR: When did you decide to retire, and why?
TR: Things were changing. After I turned 62, I took a hard look at what I was doing and realized how much it was going to cost to invest in new tools and equipment. Although we were on referral lists for a lot of insurance companies, it was getting harder and harder to make a living and be profitable, especially for a mom-and-pop shop like ours. Fortunately, Bob Williams from 1st Class Auto Body in East Boston heard that I might be interested in selling. He was interested in buying the shop because we owned the property and because of the impressive customer base we’d built. After some negotiations, we sold the shop to him, and I worked with him for two years after that.
Now, the shop is called Rawson’s 1st Class Auto Body. It’s still in the same location, but Bob had the funds to enlarge it. He bought two acres of land next door with a big garage in the back, and he’s expanded the shop by threefold. He’s tripled the business; it’s just amazing what he’s done with it.
have overhead just like they do, yet insurers want to pay us less. It’s just not a fair situation. I still talk to people in the industry, and a lot of them suspect that cars are going to be totaled all the time if they raise their labor rates. Well, so be it. They have to be profitable, and they deserve to make a fair rate for the work they do. Repairing cars today is totally different than it was even 12 years ago, and we can’t have these little backyard shops slipping them out because it’s just not safe.
NEAR: What have you been doing since you retired?
NEAR: What do you miss the most? The least?
TR: By being a part of this industry, I met a lot of great people around the state, and I miss my customers, vendors and colleagues. A bunch of us shop guys would go to conventions together and have a great time.
But I don’t miss the headaches, investments and financial struggles. I don’t regret retiring, but I had planned to work another 10 years and would have liked to stay in the business if it required less investment and the cash flow was better. It just wasn’t worth it to invest all that money, knowing how little I’d get back. You can spend thousands on equipment, only for it to be obsolete a few years later.
TR: It’s hard work, and the business end is particularly tough. You really have to watch your pennies and make sure you get everything you’re entitled to. If you don’t ask for it, they’re not going to give it to you! [WHERE ARE THEY] NOW?
NEAR: Do you think the industry has changed since you stepped away?
TR: The labor rate has gone up a bunch, to nearly $50, but it’s still not enough when mechanical shops and dealerships are making $120-150. Auto body shops
TR: Beverly and I spend our winters in Orlando, FL and our summers in Hollis, NH. We were lucky that we bought our retirement townhome in the 1980s when costs were more reasonable. We really enjoy taking cruises; we’ve been to Hawaii, and I’m really looking forward to the cruise we have scheduled in August. We’ll fly to Toronto and cruise the Great Lakes for 12 days, ending up in Milwaukee, WI. The ship only hosts 190 guests, so it’s like a riverboat on the lakes. I also enjoy a different type of cruise. I’ve had Harley Davidsons my entire life, and I just bought a ‘03 silver anniversary Classic with only 7,000 miles on it. I won’t ride a motorcycle in Florida because the drivers down here are reckless, but I look forward to cruising through the mountains every summer.
NEAR: What is the one thing you think you got out of this industry you would not have gotten if you didn’t pick this career?
TR: We were in business for over 40 years, and there’s nothing like the independence of being your own boss. I also enjoyed the community; because we had such a loyal customer base, we knew an immense number of people in town. We’d see someone we knew every time we went out.
NEAR: Do you have any thoughts or advice you’d like to share with those still working in the field?
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the strongest - and ONLY! - group in Massachusetts fighting for both consumers and the collision repair industry. Every renewing shop and new shops who join the membership strengthen our collective influence. For each shop that joins, we add an average of 13 members through the employees we serve. Multiply that by the families of those employees, and our growing numbers help amplify our impact. This collective strength was instrumental in the creation of the Auto Body Labor Rate Advisory Board (ABLRAB) – an incredible achievement. For the first time, we will have a seat at the table when fair and reasonable labor reimbursement rates are discussed. That is HUGE!
If you’re not yet a member (and no, this isn’t an attempt to shame you, but maybe it is), don’t sit back and wait for others to do the work from which you’ll ultimately benefit. DON’T ask “What’s in it for me?” Instead, go to page 7 or visit our website at aaspma.org and click on the “Join Now” button. Do it now; be part of the solution!
If you’re still wondering “What’s in it for me?” or if you have questions about membership, feel free to contact me directly. I’d be happy to share all the opportunities you’re missing out on.
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