Page 19 - GIADA-Mar 2018-web

COMPLIANCE

By not filing a DBA, a dealership may was properly licensed. However, in Texas, Following all of the rules and regulations
be subject to fines or penalties. More a “specialty” license requires dealers to is important for the sustainability and
importantly, failing to file may ultimately train each employee acting under that success of a dealership. The important
result in having to think up a new name license. This training must be approved takeaway is that lack of compliance — or
for the store, and we all know the immense by the Texas Department of Insurance even suspicion of lack of compliance —
role a dealership’s name plays in its public and the dealer must keep a completion seems to have a chain reaction.
perception, branding, and growth. certificate on file for each employee.
If a customer has a simple complaint
TEXAS’ SPECIALTY LICENSE REQUIREMENT In this case, the ABC Motors employee about a bad experience at a dealership,
These real-life, worst-case scenarios do who sold the credit life policy to the and it is discovered that the dealership
happen. Here’s an example with some customer did not have the training is not in good standing regarding an
of the identifying details changed: A completion certificate. The dealer was entity vital, that simple complaint can
customer purchased a credit life policy fined $50,000. Beyond the fine, the state snowball into major fines, penalties, or
at ABC Motors in El Paso, Texas. The insurance department could have revoked termination. So make sure maintaining
customer submitted a claim that was ABC Motors’ license as well, which would entity vitals is a priority. Failing to do so
denied for an unknown reason. The mean the dealership would no longer be could nullify every other effort put into
customer then contacted an attorney. able to sell credit life, credit disability, or your dealership. n
GAP, which was classified as insurance
Whether the claim was legitimately and not a waiver at the time of this case. Brennon Romney serves as account
denied or not became irrelevant once development supervisor for American
the attorney looked at the dealership’s While we used an F&I example, Financial & Automotive Services. Email
insurance licenses issued by the Texas compliance is a broad term that extends him at brennon.romney@bobit.com.
Department of Insurance. ABC Motors to every operational point of a dealership.

GIADA Independent Auto Dealer MARCH 2018 | 17