Risk Management

This flashcard set covers GP46 risk management absolutes, underwriting procedures, conversion protocols, liability definitions, and vehicle inspection standards based on the branch lecture notes.

What is your Branch's current reserve per car?

The reserve per car is $62.37$.

GP46 Risk Absolutes

Underwriting, Vehicle Inspection, claims quality.

How is a reserve loss defined within Risk Management?

A reserve loss is an on-rent loss that is paid out over the course of $12$ months.

What is the specific expectation or goal for reserve losses?

The goal for reserve losses is $45/\text{car}$.

According to the Risk Absolutes, what can be done to reduce loss per car?

Reduction is achieved through proper underwriting, proper vehicle inspections, and proper claim writing.

What two components make up total physical damage losses?

Total physical damage losses consist of CDW Losses + Subro Bad Debt.

What is the formula used to calculate reserves?

Reserves are calculated using a $12$ month rolling average + $1$ month lag + $10\%$ buffer.

whats your branch’s recent total uninsured loss amount

$5.45 per car

What is the definition of an uninsured loss?

An uninsured loss is an off-rent loss that Enterprise cannot pursue or subrogate a third party for.

Employee Loss Physical damage goal and how to reduce?

goal is $1.25, reduce by driving carefully.

Employee Loss Liability goal and how to reduce?

goal is $1.25, reduce by driving carefully.

What is the goal for Employee Loss Physical Damage and how can it be reduced?

The goal is $1.25$, and it is reduced by driving carefully.

How is Employee Loss Physical Damage expensed across the organization?

It is expensed as follows: Branch: $2,500$; Area: $7,500$; City: $15,000$; Group: Remainder.

How is Employee Loss Liability expensed across the organization?

It is expensed as follows: Branch: $2,500$; Area: $7,500$; City: $15,000$; Group: $25,000$; Corporate: Remainder.

What is the goal for Conversion and Lot Loss and how is it achieved?

The goal is $2.50$, achieved through proper underwriting, renting to the correct people, having the right lot plan, and avoiding unsafe or crowded parking.

What is the goal for Undocumented Damage and how is it prevented?

The goal is $5$, prevented by proper vehicle inspections and proper claim writing.

What is the goal for Total Uninsured Losses?

The goal is $10$.

How are detectable versus undetectable fraudulent rentals expensed?

Detectable fraudulent rentals result in the entire loss amount hitting the branch that month (no spread); undetectable fraudulent rentals are treated as a reserve loss to the branch.

What are common red flags of fraudulent rentals regarding timing and behavior?

Red flags include newly booked reservations or renter profiles ($24-48$ hours old), walk-ins asking for high-end or specific cars, and making a scene when a card or license is questioned. OOS drivers license w/out luggage, license is altered, can’t provide 3rd form of ID or answer identifying questions.

How are fraudulent rentals prevented?

proper underwriting, qualifying renters, black light, IDs, matching method of payment and licenses, calling numbers on back of credit card asking basic questions. Don’t just give and confirm. Utilizing credit card checker, scan all license in tablets.

Who should you contact or what should you do if you suspect you have a fraudulent rental

Branch, area, and risk managers

How is a conversion defined?

A conversion is a vehicle over which Enterprise has lost control and lost contact with the renter.

What are the requirements for running Renter Verify and what happens if it fails?

Renter Verify is run on every resident in the US; if it fails, manager approval is needed for all debit cards, and the renter must provide two of three documents (pay stub, paid utility bill, or paid medical bill) with their name and current address.

how do you prevent conversions?

Proper underwriting in a proper callback plan

how do you submit a conversion request and what is required prior to submission?

fill out conversion checklist found in risk department emails showing you exhausted all options for communication. The process can start when there are two broken promises from renters and they are down on payment.

what does proper underwriting mean and what does it entail?

gather two phone numbers and emails, manager approval on ALL debit card renter verify fails, car class compliance, information confirmation

What is a demand letter and who sends it?

It is a letter stating the customer is no longer authorized to drive the vehicle - risk department will submit this

what happens when the demand letter expires?

Report the car stolen to the police risk department will do this

what should you do while the demand letter is still out in the car is missing?

Keep notes updated on file in ECARS/greenlight of process do not charge card. This authorizes the customer to stay in a vehicle.

What is the process for reporting a car stolen after the demand letter has expired?

if risk doesn’t automatically do this contact risk to report the car stolen?

What action regarding the customer's card must be avoided while a demand letter is active?

DO NOT CHARGE CARD, as this action authorizes the customer to stay in the vehicle.

How long must the branch wait to find a car before writing it off?

The branch has $30$ days to find the car before it is written off.

what is the process once the car has been found after being reported stolen?

Ground the vehicle, send Old plates to risk contact tag team for new plates, Get vehicle inspected by dealership. Five days after the vehicle is rentable.

List the 6 Unlimited Liability situations.

1. Negligent Entrustment, 2. Negligent Maintenance, 3. False Arrest, 4. 3rd Party Disclosure, 5. Employee Loss, 6. Employee Assault.

Define Negligent Entrustment and Negligent Maintenance.

Negligent Entrustment is giving a vehicle to someone unfit to drive (unauthorized, no license, underage, or impaired); Negligent Maintenance is renting a vehicle with a known mechanical issue.

What is the definition of False Arrest in a rental context?

A renter being arrested due to a status of the rental that was not their fault, such as failing to remove a stolen hold after a vehicle is put back into service.

define third-party disclosure

Giving renter information to a third-party without renters explicit permission

What are the four protection products offered and their specific coverage limits?

1. Damage Waiver (full value), 2. Roadside Assistance Protection (keys, tires, towing), 3. Supplemental Liability Protection ($300,000$), 4. Personal Effects Coverage ($1,750$ per person, up to $8,750$ max).

how do you set up a reservation for a hand controlled equipped vehicle?

Called the mobility device hotline found on ECARS under the tools tab. Connect the customer with the PDX mobility center.

what are the most common hot panels that caused damage dispute?

Front and rear bumpers, windshield and roof

if a customer is disputing the claim, how do you resolve it?

At the branch level, determine if we choose a DNP or if we want to pursue the renter

what is the roadside assistance protection

What’s the supplemental liability protection?

define employee loss

Employee damages an enterprise vehicle or damages a third-party person or property while on the clock

What is the timeframe and penalty for failing a Hand Control equipped vehicle reservation?

The branch needs $48$ hours (PDX needs $24$ hours); the penalty for failing a reservation given the proper timeframe is $75,000$.

What is the Enterprise minimum for tire tread depth and how is it measured?

Tires must be above $4/32\,\text{in}$, measured using a Tire Tread Depth Gauge in $3$ spots on each tire.

When is it acceptable to rent a Manufacturer Recall ($MR$) or a LOFR?

NEVER.

how do you prevent dangerous items or lost and found in general from being left in the car?

ask the customer if they left any personal belongings in the vehicle on return, and open each compartment of the rental during the return process under seats, trunk glove box, middle console, and in between seat, seats and check for missing items

what do you do if law enforcement declines to come and retrieve a dangerous item?

Contact ARM/risk to figure out a solution to retrieve the item out of the vehicle and take it down to the police station

what do you do if the customer has left the branch and a dangerous item found?

Park the vehicle far away lock vehicle call the police and submit an E alert found on the startup page

what do you do if the customer calls in and say that they found an item or thinks they may have left an item left in the car

Check vehicle for weapons if weapons or illicit items are found locked the vehicle contact ARM/risk and have them contact authorities never release a weapon back if the contract has already been closed

What is the protocol if a dangerous item is found in a vehicle after the customer has left the branch?

Park the vehicle far away, lock it, call the police, and submit an e-alert.

Can an employee remove a Manufacturer Recall ($MR$) hold?

No, the Vehicle Repair (VR) department will do this once they receive paperwork from the dealership.

what do you do if the customer is still present but an employee found a firearm/hazardous item during their return process with the customer?

Ask the customer if they left any personal belongings in the vehicle before the return process and during ask again before closing the contract once the contract is closed out, lock the vehicle and contact ARM/police as we are now responsible