State Farm has issued its O&A letter to participating glass shops, many of the letters landing mailboxes today. The following is a copy of what one glass shop received. To comment on the State Farm O&A, click HERE
State Farm Insurance Companies
February 7, 2005
Sent Via Fax
Dear Officer & Acceptance Participant:
Please read this entire letter as it includes a pricing change.
Pricing Structure Change:
In response to the recent quarterly release of the NAGS pricing update and based on market conditions in your area, we have adjusted our discount structures for your facility.
Under the Offer & Acceptance Agreement, you previously agreed to future pricing structures upon notification from State Farm. The pricing structure offered below applies to all shops in your county. Effective with dispatches dated on or after February 28, 2005, the pricing for glass service in your county set forth in Section 1 will be as follows:
A. Glass for Autos, Vans, and Light Trucks: DOMESTIC AND FOREIGN
Since the inception of State Farm's National Glass Program, we have managed our non-Offer and Acceptance competitive bid process to ensure all bids are competitive. When we ask you for a bid, we are looking for a non-Offer and Acceptance, competitive bid. We understand your bid may be higher than the O&A price you have agreed to in your Offer and Acceptance contract with State Farm for other glass claims. Simply stated, you are free to provide any dollar bid you wish to compete for these jobs.
The above information describes changes to the Offer and Acceptance Agreement previously completed by your facility. All other terms and conditions of the Agreement remain in effect. As provided in the Agreement, either party can terminate the Agreement in writing at any time.
Unless we receive a WRITTEN removal request, any jobs dispatched to your facility on or after February 28, 2005, will be processed under the new pricing structure and your facility will continue to remain on the Offer and Acceptance program. Your removal request can be mailed to Glass Claim Services (formerly known as Glass Central) or faxed to the following numbers: 309-766-9971 or 9972.
If you have questions regarding the invoice processing change please contact Glass Services at (309) 766-6000. LYNX Services is available at (239) 479-6000 should you have any questions about invoices you submit for payment.
As always, we appreciate the help you provide to our customers and look forward to our continuing efforts to provide those customers with the best glass claim service in the industry. Thank you for your continued participation in our glass claim program.
Robert P. Bischoff, CPCU
No reproduction, in print, electronic or any form without the expressed written permission of
Key Communications Inc. 540-720-5584.