Enterprise MQI - Risk Management
When are your reserves hit? - answer Losses in a revenue producing state. Ex. CDW
losses, fraudulent rentals, 91 day DX receivables.
How does a reserve loss work? - answer It is spread across 12 months and hits your
branch one month after the loss occurs.
What is the reserve goal? - answer$25 per car or less. To see where you stand on the
month check accident completion report.
How do you manage your reserves? - answer Proper underwriting, detailed dx's, file
claim, and collect deductible.
How to calculate your reserves? - answer Monthly losses/12 months x 110%/ fleet size
Loss per Unit (LPU) - answerOne month snap shot of your reserves to reduce (same as
reserves) proper trunk to trunks, use damage evaluator, collect deductibles, file claims
with insurance companies
Define Uninsured Losses: - answerCars in a non-revenue producing state except
conversions. Ex. employee accidents, conversion, undocumented damage, lot damage.
What is the goal for Uninsured Losses? - answer$6 or less per car
How to manage uninsured losses. - answerProper trunk to trunks, underwriting,
callbacks, promote safe driving.
Define primary liability: - answerPay minimal
Define secondary liability: - answerPays after primary
Define vicarious liability: - answerUnlimited liability exposure.
Liability Rules by State: - answerMD- Secondary for replacement rentals, primary for all
others.
VA- Primary for all, but our rental contract gives us the right to recover losses from the
renter.
DC- Primary
WVA- Secondary
State Liability Limits - answerVA liability limits 25/50/20 (bodily injury per person/ bodily
injury per accident/property damage.
When are your reserves hit? - answer Losses in a revenue producing state. Ex. CDW
losses, fraudulent rentals, 91 day DX receivables.
How does a reserve loss work? - answer It is spread across 12 months and hits your
branch one month after the loss occurs.
What is the reserve goal? - answer$25 per car or less. To see where you stand on the
month check accident completion report.
How do you manage your reserves? - answer Proper underwriting, detailed dx's, file
claim, and collect deductible.
How to calculate your reserves? - answer Monthly losses/12 months x 110%/ fleet size
Loss per Unit (LPU) - answerOne month snap shot of your reserves to reduce (same as
reserves) proper trunk to trunks, use damage evaluator, collect deductibles, file claims
with insurance companies
Define Uninsured Losses: - answerCars in a non-revenue producing state except
conversions. Ex. employee accidents, conversion, undocumented damage, lot damage.
What is the goal for Uninsured Losses? - answer$6 or less per car
How to manage uninsured losses. - answerProper trunk to trunks, underwriting,
callbacks, promote safe driving.
Define primary liability: - answerPay minimal
Define secondary liability: - answerPays after primary
Define vicarious liability: - answerUnlimited liability exposure.
Liability Rules by State: - answerMD- Secondary for replacement rentals, primary for all
others.
VA- Primary for all, but our rental contract gives us the right to recover losses from the
renter.
DC- Primary
WVA- Secondary
State Liability Limits - answerVA liability limits 25/50/20 (bodily injury per person/ bodily
injury per accident/property damage.
