Bringing the F&I Providers and Administrators Association (FIPAA) into being was a little like mating elephants: things happened at a very high level, there was a lot of grunting and snorting, and it took two years to get results. But on September 27, 2011 FIPAA was born in Las Vegas, weighing in at a healthy 2,917 pounds. Actually, that is the cumulative weight of the Advisory Council, which is a fine place to begin this story.
The Advisory Council is the body that steers the Association and advises the Board of Directors. The Council met for the first time during the Industry Summit at the invitation of the Board of Directors – David Gesualdo, Adam Kimber, and me. The members of the Advisory Council and the companies they represent are:
Clearly, this is a serious group, and demonstrates the breadth of support for the organization. Pete Biscardi was unanimously elected Chairman of the Advisory Council. Pete states, “The enthusiasm of the working group and the members of the council clearly indicates a commitment to the industry from the highest levels. The efforts of all those involved demonstrates a bi-partisan willingness to create high standards of excellence for our industry.”
Pete agreed to head this working group to address those issues. The first order of business in Las Vegas was to define the scope of membership and dues structure. Without those variables settled, the Association could not move forward.
In the months since the kick-off meeting, Pete’s committee (Brent Allen, Steve Amos, Chris Kerby, and Kelly Price) came to a consensus as to membership levels and dues:
Membership Levels
Provider and Administrator ("P&A") Members
Actual F&I product providers (VSC, GAP, etc.)
Underwriters of F&I products
Industry Members
Allied Members
Dues
P&A Members: $2,000/year
Industry Members: $1,500/year
Allied Members: $1,000/year
All companies and individuals that join before the end of the Agent Summit in March will be designated “Founding Members.”
Registration forms are available. Click Here.
Next on the agenda was clarifying goals for the first year of FIPPA’s existence. The initiatives deemed of highest immediate priority were:
Industry Certification Program
Despite everyone’s best efforts, this initiative continues to be called the “Good Housekeeping Seal of Approval.” A more appropriate title will come in time, but the concept is clear: we want to create clear and objective set of criteria that distinguish reputable providers from the fly-by-nights. Suggested requirements for certification include underwriting by companies rated “A-” or better, a certain Better Business Bureau rating, and absence of negative regulatory action. Whatever criteria are decided, certification must be free, or very close to it – we don’t want to create the impression the certification is for sale, or only available to those who are willing to pay for it.
Independent Inspector Training and Certification
Having an objective training curriculum and certification of ability for inspectors is a high priority for the providers that use inspectors in the claims process. Creating the curriculum and a web-based delivery system will easily take a year to complete, but is seen as a natural and important function of FIPAA.
Industry Education and Certification Program
Not everyone is born knowing the difference between Stated and Exclusionary Coverage. And yet there is an immense body of knowledge within the members of the Advisory Council and the companies they represent. Web-based instruction and testing related to industry knowledge was considered a benefit to the industry as a whole, and would provide standardized training of new hires. This training could extend to independent agents in the field, with an additional emphasis on legal compliance – all providers and administrators have a vested interest in having the agents selling their products doing so in a legally compliant manner.
FIPAA Website
It goes without saying that the organization needs a robust website that can facilitate communication and provide “the reputable voice of the industry” to those consumers who seek information about the value of F&I products. Sponsored by P&A Magazine, www.fipaa.org will launch in conjunction with the next board meeting being held at the Agent Summit in Las Vegas, March 12-14.
Two years ago, a number of thought leaders in the F&I industry had the notion of creating an association. FIPAA represents the birth of that notion.
