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GRILL > Risk > Flashcards

Risk Flashcards

1
Q

What are the proper underwriting procedures

A
  • full cost of rental + $200
  • Cash qualifications: findability/fundability
    NC DL,
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2
Q

What are the Cash qualifications for a NC DL

A

NC DL, full coverage insurance + utility bill
2 utility bills
1 utility bill + full time pay stub

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3
Q

What are the cash qualifications for an out of state DL

A

Major credit card

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4
Q

Explain the process in collecting a deductible

A

Explain to the customer that they will need to file a claim with their insurance company
Collect deductible from customer
Key a DX completely and have the customer sign it

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5
Q

How long is a warranty in effect?

A

36,000 miles/ 3 years (36 mos)

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6
Q

What does the warranty not cover

A

Wear and tear
General maintenance
Collision and related incidents
Damage due to neglect

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7
Q

What is factory assistance

A

When the car just ran out of warranty and we ask for assistance in fixing the repairs

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8
Q

What does MMR stand for

A

Mandatory Manufacturer Recall

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9
Q

What are the comp and collision reserves

A

Money set aside for any vehicle on rent

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10
Q

What is the formula used for comp/ collision reserves

A

12 mos rolling avg + 10% buffer

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11
Q

What are the 2 separate categories in comp/collision reserves?

A

Subro/bad debt and other DW

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12
Q

What is subro/bad debt

A

The customer cant or wont pay the deductible

there is no deductible to collect

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13
Q

What is other DW

A

Damage wavier losses

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14
Q

What is LPU

A

Loss per unit

Subro/bad debt + other

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15
Q

What is the comp/ collision reserves goal

A

$25/car

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16
Q

What is the subro/bad debt goal

A

$10/car

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17
Q

What is the other (DW) goal

A

$15/car

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18
Q

Equation:

What is the comp collision reserves for a truck with a $70000 12 mos rolling avg

A

$77000

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19
Q

Equation

What is the comp collision reserves for a Honda sonata with a 12 mos rolling avg of $50000

A

$55000

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20
Q

What is the formula for Commission

A

Commission = net profit x avg fleet size x commission%

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21
Q

Equation:
What is the commission of a branch manager with an avg 300 fleet store that makes a net profit of $$15,000 that gets a 7% commission

A

$315,000

22
Q

Equation
What is the commission of a branch manager with an avg 100 fleet store that makes a net profit of $5,000 that gets a 10% commission

A

$50,000

23
Q

Equation
What is the commission of a branch manager with an avg 20 fleet store that makes a net profit of $500 that gets a 3% commission

A

$300

24
Q

What is the formula for occupancy

A

Occupancy (%)= #of cars on rent/ # of cars in fleet x 100

25
Q

Equation

What is the occupancy of a branch with 50 cars rented and a 300 car fleet

A

16.7%

26
Q

Equation

What is the occupancy of a branch with 195 cars rented and a 200 car fleet

A

97.5%

27
Q

Equation

What is the occupancy of a branch with 300 cars rented and a 350 car fleet

A

85.7%

28
Q

What is the goal for a LOFR score

A

Under 25

29
Q

How can you impact your comp/coll reserves

A

Proper underwriting
Collect deductible
Put the right customer in the right car
Complete DX

30
Q

Damage wavier is what?

A

What most typical losses are from?

31
Q

Money set aside to pay for 3rd party damage claims Is?

A

Liability reserves

32
Q

Explain the 7 Steps of the conversion process

A
  1. After $50 down or ceased contact with the customer, pursue alternative means
    Alternative means include calling references, work, or insurance
    Drive by: multiple and various
    Check prior contract for add’l numbers
  2. Then send a completed conversion worksheet to the area manager (Brandon)
  3. the area manager will review for accuracy and completeness and then send to the risk manager (James Wallace)
  4. Risk manager will send out the demand letter to the renter stating the renter has 72 hours to return the vehicle prior to seeking legal action
  5. Risk manager will send the branch a skip trace; branch should work through skip trace to contact renter
  6. Once 72 hours has passed, the RM, with the RVP approval, will seek to report the vehicle as “failure to return.” This will issues the charges against the renter and place the vehicle on the hot sheet. The branch may close the contract at this time; always consult the RM on the exact date to close the contract.
  7. After 30 days, the vehicle is written off to account 557 as an uninsured loss. Enterprise uses UDW (undamaged wholesale) to determine the write off amount.
33
Q

What information is on the conversion worksheet

A 
Customer name
Contact #
Qualifications
Past rental hx
Address and drive by dates and details
Work address, drive by dates and details
Misc address, drive by dates and details
Employment information
References
Internet research: google, FB, Instagram, etc.
34
Q

Definition: Any damage done to a vehicle that is NOT on rent

A

Uninsured loss

35
Q

CLUE deals with?

A

Things considered an uninsured loss

36
Q

What is considered an uninsured loss

A 
Conversion
Lot damage or theft
Undocumented damage
Employee accident
Personal injury accident
37
Q

Undocumented damage goal is

A

$5/car

38
Q

Proper underwriting
Small chase cars
Proper trunk to trunk
Have a lot plan

Ways to…..

A

Control uninsured loss

39
Q

How do you expense damage done to an enterprise car

A

$2,500 to the branch
$10,000 to the area
$25,000 to the region
Anything over goes to corporate

40
Q

Qualifications and limitations for a 19 yo male wanting to rent a car

A

Underage driver (18-20)

Must be for an insurance replacement only (NO RETAIL)
Renter must have full coverage of their own, unless through Nationwide
Cannot sell DW, SLP, or PAI (only RAP)
$10/day underage charge unless there is a national agreement
Can only rent up to a full size car

41
Q

A 20 yo sailor comes to rent a car because his car was involved in a car accident. He has full coverage and his insurance is covering the rental, and wants to rent an SUV to replace his SUV. Can you rent to him? Why or why not? Can he have an SUV? Are there extra fees?

A

Yes, you can rent to him. He is an insurance replacement.
Yes, he has full coverage insurance
No, he can not rent an SUV (only can rent up to a full size)
Yes, Extra $10/day unless there is a national agreement

42
Q

An 18 yo wants to rent an economy car for a trip to the beach with his friends. He does not have insurance. Can you rent to him? Why or why not? Can he get an economy? Are there extra fees?

A

No, you can not rent to him. He is a retail rental and he does not have insurance.

43
Q

A customer brings a Chevrolet Malibu back with damage that was not previously noticed on the car. She states that she received the car that way. The car was rented from an Airport in Atlanta.
What do you do?

A
  • Call the renting branch
  • make sure you have the original contract
  • See if the damage is already on a claim in unit service
  • Document damage via DX or OX
  • SHOP immediately
44
Q

Why is it shopped now?

A

Customer service -> the brand (don’t want to be the company putting people in damaged cars)

Employee development- if employees have undamaged vehicles they are more confidant and they can sell better

Growth- quicker you shop the vehicle on your books, the less you will be sitting on them. That helps you grow your fleet and rent out all the vehicles on your lot.

Profitability- if a vehicle with damage is rented out, then the insurance company that the claim is filed with will be more likely to dispute the charges. Then we would be responsible for paying for the repair.

45
Q

What are the Core values

A

Customer service
Employee development
Growth
Profitability

46
Q

What do you look for when cars come back from the shop

A

M- matching paint T- Texture
O- orange peel A- Alignment
G- good alignment C- Color
O- Overspray O- Overspray

47
Q

Ms. Smith came into the Enterprise office and slipped and fell walking into the door. What do you do?

A
  • Make sure Ms. Smith is okay
  • Call an ambulance
  • Get witnesses
48
Q

Sean T. and his girlfriend Shakayla are arguing in the Enterprise office. Sean slaps Shakayla and angrily walks out the store. What do you do?

A
  • Make sure Shakayla is okay
  • Call an ambulance
  • Get witnesses

In this care, probably should call the police as well

49
Q

What do we look for during a trunk to trunk?

A

Damage
Make sure the care is clean
Safety items- tire depth
Lost and found items

50
Q

Relate Trunk to trunk to the 4 core areas of the business

A

Customer service - show the customer our brand. No damage= happy customers.
Walk around the vehicle with the customer, posint out things and ask for agreement to reduce damage disputes

Employee development- You want employees to be confidant about their products. They should be experts of the vehicle. The more proper trunks to trunks to trunks your do, the more you will seem like the expert

Growth- proper trunk to trunks will lead to less undocumented damage and less cars in the shop, so you don’t have to sit on vehicles that aren’t being rented, store can run tighter and grow the fleet

Profitability- during the trunk to trunk, an employee has many opportunities to sell which means more money. Also makes sure damage isn’t missed, less undocumented damage, less loss.

51
Q

What do you need to conduct a trunk to trunk

A

Tire gauge

2 Damage evaluators

GRILL (1 decks)

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