Alpine Glass of Minneapolis, MN, has been awarded an arbitration award against AAA Insurance Co. for $149,500.57. The award represents 100 percent of the amount sought through arbitration for short pays from the insurer. Mike Reid, president of Alpine Glass, says the company won this arbitration because the insurer was unable to prove Alpine had unfair billing practices.
“It’s sad to see glass companies failing as a result of being desperate and accepting reimbursements that are ridiculously below what is fair and reasonable,” says Reid. “Glass companies are losing out by not fighting for a fair price. We have shown time and time again that our prices are fair and reasonable.”
According to court documents, “Alpine asserts, as assignee of its customers, that it is entitled to the full amount billed for glass repair and replacement work governed by the terms of the AAA insurance policy. The claims are from July 6, 2006, through May 9, 2012.”
“AAA did not conduct a survey of the ‘area where the car is to be repaired,’” writes arbitrator David T. Magnuson in the arbitration award. “The short-pays of Alpine’s invoices was systematic and consistent, but not based upon written estimates, competitive bids or an agreement. AAA did not comply [with] the terms of the policy in processing Alpine’s claims.”
“Alpine will continue to fight against insurers who short pay our invoices and, if necessary, we will continue to file for arbitration in order to be paid what is right,” he adds.
In July 2012, Alpine won a six-figure award against Liberty Mutual for short pays. Additional wins include six other awards from Illinois Farmers, Allstate, American Family, USAA, Integrity and Guide One.
According to the arbitration award, “The dispute arose as a result of claimant Alpine Glass’s insurance policy with respondent wherein claimant pays for glass repair and replacement work, get as assignment for each individual claim, and then submits the claims to respondent AAA Insurance Co. A third-party administrator, in turn, pays pursuant to the insurance policy what they deem to be the amount charged by a majority of the repair market for glass repair and replacement claims.”
The recent award is Alpine’s eighth within the last two years; the total of the awards is now approaching $3 million. Alpine Glass has been victorious in all of its arbitration cases. A representative for AAA had not responded to request for comment at press time.