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State Farm 2024 Auto Exam Review Questions and Answers, Exams of Credit and Risk Management

A comprehensive review of the key topics and concepts covered in the state farm 2024 auto exam. It covers a wide range of topics related to the auto insurance industry, including competitive bidding processes, the use of preferred collision providers (pcps), the select service program, paintless dent repair (pdr), and the use of non-original equipment manufacturer (non-oem) and recycled parts in vehicle repairs. The document also addresses important considerations around determining repair costs, contracts with repairers, freight charges, and the publication of survey information. By studying this document, students can gain a thorough understanding of the industry practices and regulations that govern the auto insurance and collision repair sectors, preparing them for success in the state farm 2024 auto exam and related coursework.

Typology: Exams

2024/2025

Available from 09/21/2024

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State Farm 2024 Auto Exam
Review Questions and Answers
100% Pass
Competitive Bids - Answer>> The competitive bid process
requires that two or more repairers submit competitive estimates
or
"bids" for a specific repair job. The amount of the low, complete
bid is generally considered to
be the "competitive" price and is used as the basis for settlement.
In all cases, the vehicle owner
selects the facility that will perform repairs.
PCPs - Answer>> State Farm uses a continuous
survey that gives repairers the opportunity to provide information
online. The repairer information is used to determine labor rates
and material pricing levels that
reflect prevailing prices in that area. PCPs are determined by
analyzing information provided by
repairers that meet the Equipment/Capabilities Criteria listed on
the Repair Facility Survey form
Select Service Program - Answer>> In some market areas,
repairers have been selected to participate in State Farm's Select
Service
Program. The program is designed to enhance claim service,
increase efficiency, and afford
customers an opportunity to select qualified repairers to inspect
and estimate vehicle damage
Paintless Dent repair - Answer>> Paintless Dent Repair (PDR)
is an industry recognized repair process that involves the removal
of
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State Farm 2024 Auto Exam

Review Questions and Answers

100% Pass

Competitive Bids - Answer>> The competitive bid process requires that two or more repairers submit competitive estimates or "bids" for a specific repair job. The amount of the low, complete bid is generally considered to be the "competitive" price and is used as the basis for settlement. In all cases, the vehicle owner selects the facility that will perform repairs. PCPs - Answer>> State Farm uses a continuous survey that gives repairers the opportunity to provide information online. The repairer information is used to determine labor rates and material pricing levels that reflect prevailing prices in that area. PCPs are determined by analyzing information provided by repairers that meet the Equipment/Capabilities Criteria listed on the Repair Facility Survey form Select Service Program - Answer>> In some market areas, repairers have been selected to participate in State Farm's Select Service Program. The program is designed to enhance claim service, increase efficiency, and afford customers an opportunity to select qualified repairers to inspect and estimate vehicle damage Paintless Dent repair - Answer>> Paintless Dent Repair (PDR) is an industry recognized repair process that involves the removal of

hail dents or other types of damage from metal exterior surface panels without disturbing the vehicle's finish. In most cases, this procedure involves the use of specialized tools to apply pressure to the backside of the panel to remove surface imperfections. Other techniques may be used to repair damage from the topside of the panel, depending on the size and location of the damage. By using either of these techniques, the technician is able to restore panel appearance which eliminates the need for refinishing the panel's surface area. The PDR process is often used to repair hail damage or other similar dents that occur when an outer panel strikes (or is struck by) an object that has not compromised the finish of the panel. Since the outer finish of the panel has not been disturbed, it eliminates the refinishing process and may allow for repairs to be completed in a more timely and cost effective manner. ICAR - Answer>> Inter Industry Conference on Auto Collision Repair. Determining Repair Costs - Answer>> The prices we pay for most repair operations will be determined from printed or electronic collision estimating guides and repair facility survey results. However, it is not possible to determine the cost of every repair operation from these sources. For example, when estimating a sheet metal or other repair operation, the labor estimate is based on judgment time. When estimating judgment time, it should follow what is competitive in the local market to repair the

Claims Summary - Answer>> State Farm will pay claims based upon reasonable, competitive prices for repairs necessary to repair the vehicle in a quality manner. The policy contract and law of dam ages will assist us in determining whether certain operations are payable Non original equipment and recycled parts - Answer>> State Farm promises satisfaction to the vehicle owner when new non

original equipment and/or recycled parts are specified on an estimate that is written or approved by State Farm or a Select Service repair facility. The State Farm promise of satisfaction relative to non -original equipment or recycled parts does not replace any quality or warranty provisions we require from repairers, non-original equipment, or recycled part suppliers. The State Farm promise of satisfaction for non- original equipment and recycled parts extends to fit, corrosion resistance, and performance qualities OEM - Answer>> Original Equipment Manufacturer Non-OEM - Answer>> Non-Original Equipment Manufacturer OEM Quality - Answer>> Used, rebuilt, or reconditioned parts must be of sufficient quality relative to the part being replaced Certified Crash Related Non-OEM Parts - Answer>> such parts are

subject to certification standards developed by an organization approved by State Farm*: •Bumper components •Lighting components •Radiator supports/tie bars and associated mounting components •Outer sheet metal and plastic/composite parts The vehicle owner may request a new non-OEM crash part that is not certified. In this situation, we should pay the claim based on the part being utilized Non-OEM Delay - Answer>> No unusual delay must occur as a result of considering non-original equipment and/or recycled parts for use in repairs If Non-OEM and Recycled parts are used in estimates - Answer>> The vehicle owner should be notified when the prices of non-original equipment and/or recycled parts are included in the estimate as outlined in CPG 2700- If The non-OEM part is included on the list of suspended parts and not requested by the vehicle owner - Answer>> The estimate should not include such part (Part Does not have to be certified) (page 22) If the Vehicle owner requests a non-OEM part that is currently under suspension - Answer>> the estimate may include such part pursuant to certification requirements if the part is within one of the four categories requiring certification and CAPA or NSF has developed a certification