Information regarding the Silver Wheel and Custom Wheel insurance programs offered by Lant & Co. Insurance Brokers Ltd. may be obtained by visiting its website at www.lant-ins.ca.

Following a Continental Breakfast sponsored by Whetter Oaklin Insurance Brokers Inc. the Seventh Annual Conference was called to order at 9:00 A.M. President Renwick outlined a full slate of issues that would be discussed during the day. One of those topics was the development of a plan of succession for the Association in the event of Renwick's passing or becoming incapacitated. The Association has moved forward increasing its membership to twenty-three this year, "in spite of a fog of misperception and in some cases deliberately generated miscommunication that continues to exist within the appraisal industry regarding P.A.V.E. initiatives", said Renwick. "We must exercise every opportunity to proactively respond to any opportunity to shape and enhance public perception of the special interest appraisal industry whenever possible".

"One such opportunity arose earlier this year when a Canadian Military Master Corporal; Jody Mitic was presented with a specially modified, hand-controlled Harley-Davidson motorcycle. The modifications allowed Master Corporal Mitic to operate the new bike in spite of having lost both legs in a land mine incident in Afghanistan. The folks at Barrie Harley-Davidson were so touched after hearing the Mitic story they quickly raised $50,000.00 in donations to make the bike a reality, and one of those who immediately stepped in to help was P.A.V.E. member appraiser; Larry Shackleton of GLS Appraisals in Barrie. I was extremely proud of Larry's contribution of a professional appraisal for the modified bike to this effort, and some of you may recall seeing a story that I arranged to appear in the May 21st, 2007 issue of Old Autos newspaper. That story put all parties, including P.A.V.E., in a very positive light."

"This past year has seen an increase in P.A.V.E. membership interest. A number of those enquiring also expressed an interest in accessing an accredited appraisal-training course. P.A.V.E. continues to be unable to provide its own training program due to a lack of funding from any level of government."

President Renwick formally introduced and welcomed the five newest members of the association: Douglas Annan of Ajax, Paul Calderone of Toronto, Glen Clarke of Mountain (in the Ottawa Valley area), Doug Kemp of Grafton, and Ken LeBlanc of Welland. Renwick cautioned against too much self-satisfaction with the membership increase, cautioning members to be mindful that P.A.V.E.'s 23 members are only a small percentage of the estimated 350 individuals now operating as special interest vehicle "appraisers" in the Province of Ontario. "A great number of those 350 appear happy with the 'status quo', and the lack of government regulation allows them all to continue to stumble along."

"When they are only operating as a part time business with no real expenses they can continue to charge a minimum fee, and some members of the public are more than supportive of such an arrangement. Where is the insurance industry support of P.A.V.E. initiatives when these amateur and sometimes inaccurate appraisals are received on underwriters' desks", asked Renwick. "Our industry can no longer afford to sit idle! Legitimate vehicle appraisers deserve more from our insurance partners than to be lumped in with the less than professional practitioners."

"I'm not certain there isn't more that should be done by the insurance industry to curb the continuation of these amateur, and sometimes dishonest practitioners. The insurance industry must realize the need for the special interest vehicle appraisal industry to be recognized and relied upon as a legitimate business", stated Renwick. "P.A.V.E. and its members have chosen to operate in a highly professional manner, with costs incurred to provide a very high level of competence and service, as well as providing Consumers - including those in the insurance industry - with a meaningful level of protection through a number of P.A.V.E. initiatives including our unique Professional Errors & Omissions insurance program."

While there continues to be no clear Canadian alternative to the industry enhancing measures brought about by P.A.V.E., President Renwick stated his position that "qualified vehicle appraisers throughout Canada should carefully investigate and do their due diligence with respect to learning more about P.A.V.E., or any other organization that may surface, before making their final commitment to join." "Check out an organization's websites. Review their roster of members. Become aware of what meaningful benefits will actually result from membership. Speak personally with the contact people, and question members of the insurance industry to learn as much as you possibly can about P.A.V.E. or any other organization, and then make an informed decision."

One of the questions that arise when dealing with industry self-regulation is: "Does it work?" One of the best-known self-regulatory bodies is the Ontario College of Physicians & Surgeons. The College is required to review a number of very serious allegations against its members annually. "This year" Renwick stated "I was made aware of two matters connected with the appraisal of vehicles by P.A.V.E. members. One involved the possible 'under' valuation of a vehicle, and the other involved an allegation of 'over' valuation. Both matters were investigated and resolved by me during the year. It is reportedly becoming the norm in the Canadian medical profession that a mandatory re-certification should take place every five years or so, and I wonder aloud at this time if P.A.V.E. members should again be subject to a similar review process."

"Implementation of a second P.A.V.E. 'Peer Review" would not be a witch hunt however I would like some form of assurance that all members are preparing their reports using the same general narrative format, with the same tried and tested language being used to ensure we protect ourselves as best we can from litigation. For those reasons I believe we should have a second "Peer Review" at some point in time during the coming year. Our first 'Peer Review' was held in 2003 with Mike Conlon, Paul DelGrande, and myself conducting the reviews over an intense, day-long session."

"Either later in this Conference, or throughout the coming months, I would appreciate your input regarding the format the second review should take. Should it follow the path of the first review which saw each member submit two current appraisal reports for review, or should it involve another group meeting where every member gets to inspect a couple of on-site vehicles? I believe there are benefits to both courses of action, but personally tend to favour the group's on-site vehicle review method. Obviously, any meaningful, second 'Peer Review' will necessitate a lot of work and would require a number of volunteers, so I am asking each of you to consider letting your name stand for this important project."

"I also believe appraisal consumers have a right to insist vehicle appraisers be held to a high standard, and that violators actually be punished." "Currently in my opinion," Renwick stated, "there is an inappropriate tolerance for wrongful appraiser conduct by the insurance industry. P.A.V.E. has its own disciplinary measures in place to deal with offending member conduct but the question remains unanswered of what is to be done with the non-P.A.V.E. appraisers who are proven to be unethical and/or incompetent? I foresee the execution of truly meaningful punishment requiring the strong support and co-operation of our insurance industry partners, and that is an issue I will be discussing with them at meetings throughout the coming year."

"I earlier mentioned one of the reasons for a second 'Peer Review' was to ensure the language and phraseology used in each member's repots would help prevent litigation. As most of you know, I am the defendant in an action regarding my completion of a Pre-Purchase Inspection (PPI) report in July of 2004. Some three and a half years later this matter is scheduled for trial in December of this year. The value of our Errors & Omissions insurance is very clear in this matter as my legal expenses are currently estimated to be in the area of Five Thousand Dollars and we aren't done yet! It is particularly irritating to me personally to find myself the Defendant, for the first time ever in an almost thirty-year professional career, for a vehicle with a selling price of Six Thousand Five Hundred Dollars. The allegations are also highly suspect as my appraisal reports through the years have been relied upon by Courts, Insurance Companies, and Federal Government Departments for vehicles with values in excess of One Million Dollars!!!! I would also like to thank Bruce Farrow for his generous offer to provide professional support at trial."

"The strengthening Canadian Dollar and declining American economy have combined to bring about a major, downward impact on Canadian collector vehicle values. Only a year ago when we were doing value research it was common to add 20 to 25% to the American value comparables. A few years before that we were adding 40% to establish Canadian values. Now our dollar is at and above par with the U.S. buck, and there is nothing to be added to those American price guide values! In stock market circles it's called 'market correction', and in the collector car industry, it's a 'correction' that's probably long over due" in my opinion.

"P.A.V.E.'s knowledgeable and prudent insurance partners will recognize this market 'correction' by insisting on their clients obtaining competent, professionally researched and prepared evaluation updates reflecting the changes in both the economy and market. The new reality is not going to be an easy sell to appraisal clients but I suggest each of us exhibit a 'firm and knowledgeably professional' approach when dealing with individuals requiring a current, or update appraisal."

"In a recent conversation I had with Doug Adams he told me of a major, high-end performance car dealership that estimates the value of some of its stock has dropped by 50% if they have had that vehicle in stock for over a year. Half of the drop is the result of the stronger Canadian currency, and the other half results from the decline in the North American market. P.A.V.E. members MUST stay informed on what is happening in the marketplace. It behooves each of us to accumulate as much knowledge as possible and to share that information with other P.A.V.E. members. Part of the strength of P.A.V.E. lies in the diversity of its member knowledge."

"I see the immediate major concern for our insurance partners may not be with their single vehicle, hobbyist insureds, but those clients with major, multi-million dollar collections. How well do you really know those individuals? How thorough has your underwriting really been through the years? Do recent financial background reports suggest these people are still financially secure enough to absorb a three or four million dollar potential personal loss should the collection need to be sold? And the question that should really scare the pants of every insurer is: 'would any of these clients ever consider mitigating their financial loss through a 'fire sale' that would see their collection being 'sold' to their insurance company at yesterday's values?"

"Today, I suggest to our insurance partners this reverse swing of the pendulum as it pertains to the old car industry requires your immediate and careful attention as ALL of the special programs for collector vehicles are written by you on the basis of direct damage being covered on a '19-A' 'Agreed Value' endorsement. What it's insured for is what you folks will write a loss cheque for - no 'ifs', 'ands', or 'buts'! Be assured - P.A.V.E. and its members stand ready to assist you and your underwriters in any way we can."

"While P.A.V.E. members operate in a professional manner, we must also be perceived to be operating above reproach, and I'll give you an example of a problem that's encountered at many shows, cruises, and auto related events. If you choose to advertise, participate, and promote your business at one of these venues please approach the show organizers and offer to pay for a booth, space, or the right to hand out your business cards or other advertising material. Do Not allow yourself to be the cheapskate who slides in under the fence and hands out his cards for free! And on the topic of professionalism, let me remind you to respect your fellow P.A.V.E. members when at shows, and when promoting your own business. It's an old adage but you should remember: You don't get a second chance to make a first impression."

"It is written the future of the collision repair industry is in jeopardy, and in an article in the most recent 'Collision Repair Magazine' writer Sam Piercey of Budd's Collision Services in Oakville Ontario writes: 'Our industry needs help in a big way, and we need it right now. Teachers, government employees, local municipalities, employment agencies (the list goes on and on) need to pay attention to one simple fact. Skilled labour in North America is in serious danger of becoming extinct, just like the dodo and the dinosaurs. The collision repair industry needs more government input and more money from high profiting insurance companies."

"Can a fair comparison be made between the problem the collision repair industry faces and our own special interest appraisal industry? Certainly with 350 practitioners in Ontario we've seemingly got more than enough bodies to service the insurance industry's needs, but the stumbling block is - how many of those 350 are truly qualified and committed to move into the future in a professional manner?"

"What's the average age of the people at today's Conference? I've got to think it's at least fifty. Where is the future of OUR industry? Has anyone done anything to interest someone to consider entering the appraisal industry? Like anything worthwhile, operating as a professional vehicle evaluator is anything but easy and sadly, I don't see anyone taking an interest until the general insurance industry gets socked with some massive losses. Of course, the term 'massive loss' is relative, and what does the insurance industry consider as 'massive'? I know that with conversations I've had with a senior re-insurance manager, disasters like Hurricane Katrina, and the recent fires in California increase the costs of front line markets obtaining the all-important re-insurance layers, so it can be predicted with some certainty front line underwriting standards and limits will be narrowed in the near future."

Mr. Piercey continues his article by stating: 'What we need is someone in government who will listen to our concerns. A first-term MP or a low-level bureaucrat won't get the job done. If you cannot afford to upgrade your business or educate your employees, how can you keep up? More important, how can you move forward?" Renwick went on to suggest "that concern could be addressed within our appraisal industry with a push to get many more of the professionally uncommitted, but qualified, 350 Ontario appraisers to give serious consideration to P.A.V.E. membership in the coming year."

Renwick stated "I don't for a second pretend the problems facing our appraisal industry are anywhere near the magnitude of those facing the collision repair industry, but perhaps P.A.V.E. should be making an approach to Skills Canada, and other federal and provincial funding sources to develop an 'in-house' education program. A professional approach is required to train new people who choose to enter our profession, as well as to upgrade the skills of those already in the profession but are not yet qualified members of P.A.V.E. It seems difficult to attract young men into our industry" lamented Renwick. "I brought a young man into our own company a few months ago to eventually train as an appraiser using his particular expertise with Asian-built imports. Ryan is only 19 and while he has an exceptional knowledge of these cars and their modifications he tells me repeatedly after accompanying me on appraisal inspection assignments: 'how much work is really involved!' Ensuring the future of our industry, and the expansion of our individual businesses is a major concern to me that apparently has no clear answer at this time."

At this point President Renwick thanked day-one supporter - Lant & Co. Insurance Brokers Ltd. of Stouffville, Ontario and Whetter Oaklin Insurance Brokers Inc. of Lindsay, Ontario for their financial sponsorship of P.A.V.E. initiatives. Due to a last minute travel conflict Jeremy Matheson of Zehr Insurance Brokers Ltd. of New Hamburg, Ontario was unable to attend this year's conference.

The Conference was then turned over to members who made individual business report presentations highlighting their activity during the past year. With only one exception all members reported increased levels of business during the past year.

The Professional Association of Vehicle Evaluators Inc. is an incorporated association and following the member presentations the meeting was turned over to P.A.V.E.'s Legal Counsel; Ron E. Folkes who presented the formal Corporate Minutes of the 2006 Annual General Meeting for discussion and voting.

Following Mr. Folkes' segment President Renwick called for a vote regarding the implementation of the unique "P.A.V.E. NUMERIC CONDITION GUIDE" in accordance with the instructions made at last year's annual conference. Members voted to "use the form where they felt its use would enhance the clarity of any individual evaluation report". The use of the report was not made mandatory, as was the case last year, with the use of P.A.V.E.'s unique page of "EVALUATION DISCLOSURES".

Following the vote the meeting was turned over to member Mark Cross who led a discussion to achieve consistency with the valuation of "unique" and "one-off" vehicles for which there may be little or no comparable identification or value reference.

At noon the group adjourned for lunch. This year's luncheon was again quite spectacular with all participants enjoying Copper Creek Golf Club's very popular, high end Buffet.

The group returned to business at 1:30 P.M. and discussion ensued regarding investigation of the cost to obtain Officers & Directors insurance coverage from our broker. It was also proposed that counsel would develop a Disclaimer for use on future P.A.V.E. member's future reports, and specifically on Pre-Purchase Inspection (PPI) reports.

Member Wayne Copeland responded to President Renwick's call to investigate a plan of succession by stating it had become clear to him the responsibilities of running P.A.V.E. had grown to the point where it is unreasonable to expect one individual to run the organization single-handedly. Wayne immediately offered to stand and offer assistance and made a motion that was unanimously carried stating "the association would have a Board of Directors for the coming term". The new Board of Directors consists of the following people: Douglas Adams, Wayne Copeland, Paul DelGrande, Ron Folkes, and Dean Renwick.

President Renwick produced a "Job Description" including a list of twenty-two skills he feels are necessary for a successor to the position of President & CEO to possess. A copy of that list will be made available to members of the succession committee.

Member Jim Prowse led a discussion regarding identification of safety issues and the importance of insurers not only reading - but understanding and acting upon - the content and terminology of professional appraisals. Jim referred to his own experience completing after loss investigations of vehicle fires caused by inappropriate fuel lines and/or fuel filters.

Member Bruce Farrow led a discussion regarding the development of a unique P.A.V.E. PAINT CONDITION GUIDE for use in member's future appraisal reports. It was agreed that Bruce would research and develop such a guide during the coming months, and its format and use would be voted on by the membership at next year's Annual General Conference.

Member Allan Lewis led a discussion to enlighten members with regard to developing an understanding of DOT tire Date Codes. It is the tire industry's generally accepted rule that tires should be replaced after seven years regardless of a lack of visible tread wear or weatherchecking. Allan explained the universal date coding system. Members may wish to include specific tire data in their reports as a loss prevention benefit for owners and insurers.

Dean Renwick led a discussion regarding issues of concern that have arisen during the past year stemming from an inconsistent approach to acceptance of P.A.V.E.'s VIN VERIFICATION FORMS on the part of some individual vehicle licencing offices. Renwick also touched on the issue of incorrect information being given by an uninformed third party to the Ontario Ministry of Transportation regarding P.A.V.E.'s participation in the Ministry's VIN Verification Program. "This was another in a long list of malicious and accusatory irritants P.A.V.E. was challenged with over the past year or so, but I'm pleased to advise this matter was very quickly resolved to the satisfaction of the Ministry, the Ministry's legal department, and P.A.V.E.", said Renwick.

Webmaster Edward Melnike received suggestions from members regarding the installation of a "Members Only" chat room, and updating of the web site's "Key Words". Edward will report on the additional member costs involved to implement any changes or enhancements to the web site. Members expressed their general satisfaction with the benefits they receive from the web site at www.trustpave.com as well as from having their own "page" on the site.

Dean Renwick brought forward the issue of the collection of professional fees stating: "it is rare for me to have a "Deadbeat" client, but it does happen once or twice a year where payment is not received at the time of the completion of the actual vehicle inspection and the guy decides to not pay after receiving the full report. Appraisers do not have a Mechanics Lien on the vehicle and that lack of status makes the pursuit of legal collection both time-consuming, and costly. Without a Mechanic's Lien, an appraiser would first have to post a $5,000.00 bond with the courts prior to having the vehicle picked up by a Bailiff". Renwick then advised members he had formulated a plan to incorporate a statement into all unpaid appraisals advising that ownership of the document remains solely with the appraiser - and NOT the client - until payment for services rendered is made in full. The suggestion had recently been discussed with Ron Wilson of Whetter Oaklin Insurance Brokers Inc. and Ron confirmed his office would be agreeable to returning any such reports to the appraiser involved, and then advising the insured that as they no longer had a valid appraisal on file their insurance would be considered for cancellation until a proper appraisal was immediately received by Whetter Oaklin's office. Renwick advised members it was his plan to have P.A.V.E. advise other Ontario Insurance Brokers of this program, and seek their co-operation.

Members were advised the first year membership fee has increased to $750.00. The membership review fee remains unchanged at $50.00, as does the annual renewal fee at $250.00. There continues to be no increase in the renewal fee as a means of rewarding the loyalty of P.A.V.E.'s long-term members.

There being no further business before the meeting, on motion duly made, seconded and unanimously carried, the 7th Annual General Meeting was adjourned at 4:00 P.M.

The head table consisted of Ron E. Folkes (L), P.A.V.E. Legal Counsel, D. Dean Renwick, P.A.V.E. President & CEO, and Paul E DelGrande, Director.

Giving consideration to the day's events are members Allan Lewis (L), Mark Cross, Ken LeBlanc, Roger Kleinsmith, Doug Kemp, and Heiko Schilf.

P.A.V.E.'s stellar group of experienced Ole' Time Street Rodders includes Wayne Copeland (L), Jim Prowse, Duke Brown, and Paul Calderone.

Looking very serious are members Glen Clarke (L), Bruce Farrow, Brian Asbury, and Michael Salter.

Caught on the Copper Creek's patio during the morning break are member Jeff. Reynolds (L), P.A.V.E. Webmaster Edward Melnike, and Mark Cross.

Shown in a rare "Corporate" photo are the folks at Antique & Classic Auto Appraisal Service - Doug Adams (L), Tim Wickmann, Dean Renwick, Bob Nicholson, Wayne Copeland, and Jeff Reynolds.

Adding their points of view are Paul Calderone (L), Doug Annan, and Geoff Coy, General Manager at Lant & Co. Insurance Brokers Ltd. in Stouffville Ontario.

Appraisers' legal liability issues are considered by Martyn Andrews, Manager at Whetter Oaklin Insurance Brokers Inc. of Lindsay (L), Jeff Reynolds, Doug Adams, Allan Lewis, Mark Cross, and Lant & Co's.Geoff Coy (back to camera).

Returning after a three-year hiatus is Bob Nicholson of the Huntsville office of Antique & Classic Auto Appraisal Service (L), Tim Wickmann, Wayne Copeland, and Jim Prowse.

Shown enjoying Copper Creek's exceptional buffet are internationally renowned military vehicle expert Brian Asbury of BCA Services (above),

Bruce Farrow of Road/Show Automotive Appraisals (below L), with Glen Clarke of Open Road Motorsports.

Canadian Military Master Corporal Jody Mitic (R) is shown on April 14, 2007 receiving an appraisal from Larry Shackleton of GLS Appraisals for the "Buellseye" Harley Davidson motorcycle which was specially built and electronically equipped by Barrie Harley-Davidson to meet the needs of Master Corporal Mitic who tragically lost both of his lower legs as a result of a land mine explosion while serving in Afghanistan. The airbrushed "Beullseye" on the bike is a play on words reflecting the fact Jody served as a Sniper.

When word got out about the project, over $50,000.00 was quickly raised in both cash and services. One of those who agreed to help without a second's hesitation was Larry Shackleton of Barrie-based GLS Appraisals who sponsored a professional appraisal for the modified bike. Larry, who is a licenced and insured member of the Professional Association of Vehicle Evaluators Inc. (P.A.V.E.) described the event as being "extremely emotional by everyone in attendance". Event organizer Cory Wickham stated there were more than a few tears being shed by even the biggest, most tattooed bikers" at the special presentation party. Larry Shackleton can be contacted by telephone at (705) 721-5050, or by e-mail at malibushack@rogers.com

P.A.V.E. STRENGTHENS INSURANCE INDUSTRY SUPPORT

AT SIXTH ANNUAL CONFERENCE

The Sixth Annual Conference of the Professional Association of Vehicle Evaluators Inc. was again chaired by the organization's Founder, President and CEO; D. Dean Renwick. Mr. Renwick welcomed representatives of two of the largest, Canadian specialty vehicle insurance programs as guests at this important meeting. "Particularly gratifying to all P.A.V.E. members is the fact the principals of both Lant & Co. Insurance Brokers Ltd. of Stouffville, Ontario, and Whetter Oaklin Insurance Brokers Inc. of Lindsay, Ontario have provided not only moral support for the initiatives of the organization, but also substantial financial support", said Renwick. Also receiving a warm welcome at the meeting was P.A.V.E.'s newly appointed legal counsel; Ron E. Folkes, B.Comm., LL.B. of Brampton, Ontario.

The conference began promptly at 9:00 A.M. with the President's address, the text of which follows:

This year marks the sixth time we have met to discuss and react in a positive manner to issues affecting Canada's multi-billion dollar collector vehicle industry. Concern for overvalued, undervalued, and outright fraudulent appraisals is becoming a focus of concern for not only the collector automobile insurance industry, but for the real estate industry, and lending institutions. Banks and other lenders have recently voiced concerns over the growing incidence of fraud initiated through both intricate, and primitive appraisal scams. The Professional Association of Vehicle Evaluators through its licenced members remains committed to serve our insurance industry partners as qualified "eyes and ears", providing not only definitive and objective vehicle descriptions and valuations, but also providing input with respect to storage conditions, or other areas of concern to responsible insurance underwriters.

The past year has seen the unique P.A.V.E. consumer protection program of industry self-regulation through qualifying, licencing, and insuring its members publicly misinterpreted by a private individual. Responding appropriately to this individual's allegations has been annoyingly time consuming for me. It defies logic the special interest vehicle appraisal segment of the appraisal industry is being unfairly criticized, while concurrent with our consumer protection initiatives at P.A.V.E., the collision repair appraisal segment of the industry is clamoring for appraiser regulation, mandatory accreditation, and licencing, to go hand in hand with bodyshop licencing, through the Automobile Repair Regulatory Council (ARRC).

Mr. Julius Suraski, an early guest speaker at P.A.V.E.'s 2002 AGM, and Publisher of "Car Care Professional" magazine laments in his June/July, 2006 Editorial that there will be "no end to ongoing problems in the collision repair appraisal industry because the appraising industry is NOT licenced or regulated".

I believe that we, as professionals in the special interest vehicle appraisal industry, enjoy far greater independence from our insurance industry partners than our collision repair counterparts.

It is reported in a Car Care Professional magazine article by Ian Boshi entitled "Appraisers Have a Lot to Say…" that if you sit down with collision damage appraisers and talk to them "off the record" they are unashamed to tell you they are the first ones who would benefit from a professional regulatory/licencing program. They know that those who are serious about their careers would welcome regulation, adherence to a business code of ethics, and would indeed welcome a body that would censure and punish those people who refuse to comply. Boshi suggests that "in the market today, collision repair appraisers are not really evaluators at all - they are really nothing more than cost-cutters for the insurance industry". Mr. Boshi continues: "if these appraisers were truly professional, then they would be governed by a licencing body that would hold them accountable to established industry standards, and for malpractice when those standards are breached. The fact that they are NOT licenced or regulated tells you all you need to know about the current status of the collision repair industry".

Boshi states his view that he "always thought insurance executives would be concerned that the appraisal services they use would cause unnecessary legal exposure to their clients if an insured were injured in an accident that resulted from an improper repair". Boshi claims to have spoken with many insurance CEO's and has yet to find even ONE who is concerned about this exposure. To date, every company Boshi approached on this issue seems to be satisfied with their continuing practice of using non-licenced appraisers, despite the fact that when you ask this question of their legal department - they are petrified of what may result. "I think this speaks volumes about the status of collision repair appraisers in the insurance community" concludes Boshi.

Commenting on the current collision repair appraisal industry situation it is clearly the position of ARRC that "anybody who takes pride in their work strives for professionalism, and understands the need for regulation, education, and accountability. These are characteristics of true professionals. Appraisers need to embrace what regulation has to offer so that they can elevate themselves and become legitimate career professionals".

It is my opinion the special interest vehicle appraisal industry remains truly independent, unlike the collision repair appraisal industry. Special interest appraisers - lamentably - continue to have little or no apparent reason to fear being terminated by insurance companies or brokers, regardless of how poorly or inaccurately prepared their evaluations are.

Let me again be very clear by stating that of the estimated five hundred individuals operating as special interest vehicle appraisers in the Province of Ontario, I believe MANY to be honest and competent. The problem for the insurance industry and private appraisal consumers is not the GOOD guys, it's the BAD guys. All of us at this conference, including our insurance partners know they're out there, and many are known to us by both name and deed. Let me be very clear in reminding you there's a world of difference between twenty-five years' experience - and one year's experience - twenty five times over!

I firmly believe the public needs a uniform way to identify the truly professional special interest vehicle appraisers throughout Ontario, and Canada. The best way to accomplish that is for the professional practitioners within the industry to become members of the Professional Association of Vehicle Evaluators. It may well be time for P.A.V.E. to consider granting and trademarking a unique credential for its members. Our insurance industry partners have told us time and again that when they see the stylized P.A.V.E. logo on the bottom of an evaluation report they have a strong level of comfort in knowing the content of that document. They are confident that report will present an accurate, objective evaluation of that specific vehicle.

Believe me, each and every one of us in P.A.V.E. appreciates the support and recognition we've received by being granted "preferred vendor" status by some of our insurance partners including the Guarantee of North America, and Royal/Sun Alliance however, I pose the question to ALL our insurance industry partners, that with five hundred appraisers to choose from; why the heck are the known bad guys STILL on your lists of acceptable appraisers???

I believe the Professional Association of Vehicle Evaluators and each of its licenced members have "served our time", and it's now appropriate to become more aggressive in expanding the share of work we receive from our insurance industry partners enabling us to continue as a meaningful consumer protection organization. It remains a mystery to me why the insurance industry continues to broadly accept evaluations on vehicles insured on a "19-A" "Agreed Value" form of coverage for hundreds of thousands of dollars from so many appraisers who are NOT licenced in a similar manner to your accepted repair shops, and repair specialists.

In my opinion, it continues to be a completely incongruous situation that an appraisal from a guy with limited expertise, operating without a licence, or any form of liability insurance can have his "appraisal" in an amount of - say - a quarter million dollars accepted by an insurer - but the shop that completes the ten thousand dollar collision repair must be both licenced and insured! The insurance industry surely doesn't need me to remind it that when coverage is written on a "19-A" form, there's no "wiggle room to dodge the bullet" when its time to pay out on a total loss claim!

I see P.A.V.E.'s future strength coming from increased membership. Those who have been around since P.A.V.E.'s Day One know that increasing our membership has been a tremendously uphill challenge for over six years. Because we continue to accept less than 10% of enquiries for membership, we are far removed from being considered as a so-called "Diploma Mill".

Today is the day P.A.V.E. formally asks our insurance industry partners to return the courtesies we have shown through the years by our recommending your special insurance programs to our clients; by asking insurance companies and brokers to suggest to the appraisers they are comfortable and confident dealing with, that those individual appraisers strongly consider P.A.V.E. membership.

All we're really asking is that we do business on a "two-way street". I believe "widening that street" is now in everyone's best interest.

Alex Szabo, President of the Collision Industry Standards Council of Ontario (CISCO), wrote in the November 2006, Collision Repair magazine, responding to comments made by Wendy Hillier; Claim Manager of Aviva Canada, expressing his concerns over the lack of regulation within the collision repair industry by suggesting: "industry accreditation and self-management are simply not viewed by government as a priority". Mr. Szabo states: "other sectors had a licensing regime in place making self-management much easier". Clearly, Mr. Szabo's remarks must be interpreted as an endorsement of the licencing and industry self-regulating initiatives of the Professional Association of Vehicle Evaluators and I thank him for that recognition.

While it is the mandate of CISCO to protect the public from illicit shops who perform unsafe repairs and do not operate by the rules, it is also the mandate of P.A.V.E. to protect the public - including our insurance industry partners - from unscrupulous individuals who provide inaccurate, or fraudulent evaluations.

Not unexpectedly, CISCO's research into a mandatory accreditation program showed the majority of shops that did not want to see mandatory accreditation are illicit shops, which do not operate by any rules. It is also possible, Mr. Szabo suggested, "there are possibly some repair facilities who feel they already meet a higher standard and do not want to see the rest of the industry rise to that level, however that type of selfish and parochial thinking is very much in the minority". P.A.V.E. has never attempted any similar industry research, primarily due to the lack of reliable contact data for evaluation practitioners being available to us however a program of inclusive membership promotion will be developed during the coming year.

The special interest vehicle market is currently seeing a number of reduced rate programs being offered to the public. In my opinion, these new programs require skilled underwriters who will make their decisions based upon only the most accurate, and objective evaluations in order to achieve adequate insurance to value ratios. Appraised values that are too low deprive insurers of adequate premium income, while values that are too high will have a profoundly negative impact on profitability in the event of a claim. P.A.V.E.'s licenced and insured members are the insurance industry's most visible, most easily accessed, front line of help in achieving profitability in the days ahead. Confidence through competence is what P.A.V.E. offers our insurance industry partners.

As everyone at this meeting knows, each P.A.V.E. member is insured under a unique Professional Errors & Omissions Insurance program underwritten through Encon Group of Ottawa. In today's litigious society I remain convinced this is one of the most valuable benefits of P.A.V.E. membership. Currently, two P.A.V.E. members are involved in legal actions. Both actions are being defended by Encon-appointed lawyers.

Again, I put each member on notice that every single statement you put into your reports must be true and provable. If you are relying on someone else's opinion - SAY SO. If you don't have proof of something - SAY SO. Don't GUESS, or simply ASSUME something about any aspect of your appraisal. We are operating as Professionals, and every report must be a reflection of that Professionalism. Professionalism is important, and insurance is important. P.A.V.E. members have BOTH!

Today's collector car industry is filled with more very high-valued vehicles than ever before. With widely varying values applying to similar vehicles there is a huge financial incentive to commit fraud. "So what if that '70 Superbird didn't come from the factory with a Hemi - We can just change the motor, punch out a new VIN and fender tag, and reap an extra hundred grand". Today's fraud artists can be very sophisticated and appraisers can be considered as the front line of defense against purchasers getting stuck with a "clone" instead of the real thing. The reality of today's collector vehicle industry leaves me again asking the question of why anyone who considers himself as a "professional" appraiser would want to continue operating without the protection of Errors & Omissions insurance - not only for himself - but for the enhanced protection of appraisal consumers, regardless of whether they be private individuals or insurance companies.

I fully understand P.A.V.E. members wanting to maximize their on-going financial and moral investment in P.A.V.E. That added return on investment will come from an increase in membership, and that will only result with expanded public and vocal support of P.A.V.E.'s initiatives by our insurance industry partners. I say to our partners again today - don't be afraid to stand up and be counted - you are going to be the ultimate beneficiary of increased regulation within the special interest vehicle appraisal industry. P.A.V.E. cannot operate and grow on our own, anymore than the insurance industry can operate and profit without qualified, professional appraisers.

I'm pleased to report that another benefit of P.A.V.E. membership for members has been the approval granted by the Ontario Ministry of Transportation for the completion of VIN VERIFICATION FORMS for vehicles 30 years of age and older. This was an idea brought forth by member Mark Cross at our 2004 AGM, and I'm pleased to report a number of members have been retained to complete these forms throughout the past year. I have received telephone calls from across the province regarding this unique program and have made a number of referrals to local P.A.V.E. members throughout the past year. The VIN VERIFICATION FORMS, and the Ministry of Finance Appraisal Forms, are two ways to increase earnings for P.A.V.E. members.

The day-to-day operation and promotion of P.A.V.E. is taking more and more of my time and creativity, but I remain firmly committed to see the organization grow and succeed. We remain indebted to our supporters who include the folks at Lant & Co. Insurance Brokers, and Ron Wilson and his crew at Whetter Oaklin Insurance Brokers, all of our Advisory Board Members, and especially Mike Conlon and Paul DelGrande.

Also at this time I would like to personally thank our insurance industry partners who have provided generous financial support for today's Conference.

Not able to be with us today due to other commitments are our Web Site Manager Edward Melnike, and our newest member Bruce Maclean of Oakbank, Manitoba.

A very special participant at this year's meeting is my old friend and fellow car collector Mr. Ron Folkes.

Ron is a Brampton resident where he has been practicing law since 1978.

Ron was called to the Bar in 1974. He first practiced law with a Toronto Bay Street law firm specializing in vehicle insurance matters and personal injury, acting primarily on behalf of major Canadian insurers. During that time, Ron was editor of the insurance section of the Canadian Encyclopaedic Digest.

In 1978, Ron established his own law firm in Brampton where the majority of his practise has involved insurance matters and personal injury, since 1982.

During his career, Ron has taken many cases to trial at all levels of court in Ontario and he has participated in several reported decisions of the Ontario Court of Appeal in insurance matters and municipal liability. He has conducted hearings before a number of administrative tribunals and currently has a number of matters in litigation before the Financial Services Commission of Ontario.

During his career, Ron has also acted as counsel for, and director of a number of industry associations. He completed the incorporation of P.A.V.E. on our behalf and has drafted the by-laws for the Association, which have been approved by the interim directors.

At the conclusion of the President Renwick's address the meeting continued with individual members providing capsule comments regarding their business operations during the past year. With only one exception, members felt their business volume had improved during the past year.

The program then moved to a review of the results of a suggestion made by Bruce Farrow at last year's meeting involving the issues of Evaluation Report Disclosures, and Numeric Vehicle Condition Guides. Renwick stated his gratitude to members Doug Adams, Mark Cross, Bruce Farrow, Jim Prowse, and Larry Shackleton for taking the time of offer their well thought out input with respect to the content of these two forms throughout the past year.

Each meeting participant was given a copy of the finalized "Evaluation Disclosures" and "Numeric Vehicle Condition Guide" and asked to briefly review the documents before we vote on sending them on to our insurance company for approval. There was also a brief discussion to resolve the uniform placement of these two forms within the appraisal document itself. Also provided was a sample of the P.A.V.E.-accepted "Actual Cash Value" definition and placement in an evaluation report.

The "Evaluation Disclosures" was enthusiastically and unanimously accepted for inclusion in all future P.A.V.E. evaluation reports as a means to clearly define the purpose of an evaluation report, and to clearly state who is entitled to use that report. Use of the "Evaluation Disclosures" form as a part of future evaluation reports will provide a substantial measure of legally binding protection from litigation for P.A.V.E. members. There was considerable discussion, but no resolution regarding the inclusion of the P.A.V.E. "Numeric Vehicle Condition Guide" and this matter was put over for further discussion and resolution at next year's Conference. The "Numeric Vehicle Condition Guide" is a uniquely crafted document, which parallels the widely accepted rating guide developed by the "Old Cars Price Guide". A copy of each of these two, unique P.A.V.E. forms is included with this Conference Review.

P.A.V.E.'s insurance industry partners expressed their desire for a more uniform level of professional-level appraisers throughout all areas of the province, as some areas of Ontario were felt to be under serviced at the present time. Suggestions were also made to have P.A.V.E. become more aggressively involved in self-promotion of the benefits of membership, and a number of valuable suggestions to accomplish this were made at the meeting by members and industry partners.

A group discussion was led by member Jim Prowse regarding the safety issues surrounding Home Built, Replica, and Streetrod vehicles. Currently, government concern for this issue appears minimal at best, and does not yet seem to have even shown on the radar screen of the Ontario Ministry of Transportation. Jim also led a discussion involving the evaluation of "Tuner" and "Sport Compact" vehicles. While an initial contact to the Ontario government has been made by P.A.V.E. with respect to these issues, it appears the Provincial Government's new-found interest in addressing "Street Racing" issues, may make a follow-up from P.A.V.E. appropriate in the near future.

Bruce Farrow and Tim Wickmann presented their views to show why vehicle values should be substantiated on a regular basis with Bruce stating his belief values are on a generally declining trend, and Tim presenting an example of a client who had had his vehicle fully and professionally restored but neglected to update the original appraisal and was forced to accept the lower evaluation amount when the car was involved in a total loss situation.

Wayne Copeland and Doug Adams presented their suggestions that P.A.V.E. should reconsider the issue of how to develop and fund a formal educational program for appraisers who may wish to enter the industry directly from school, or who may wish to cross over from another industry, in addition to providing a refresher-type program for individuals already operating as special interest vehicle appraisers and wish to upgrade and strengthen their skills.

President Renwick advised the Conference that P.A.V.E.'s first year membership fee will likely be increased to $750.00 in the coming year. "In recognition of the moral and financial support given by existing members, the annual membership renewal fee will remain unchanged at $250.00." Renwick indicated P.A.V.E. membership fees are reasonable, and cited a personal conversation he had with Mr. Larry Batton, President of the Charlottesville, Virginia-based Auto Appraisal Group Inc. (AAG) while visiting Boca Raton, Florida in 2005. During that meeting Batton explained the AAG "up front" fee was $5,200.00 (U.S.) however that "included a three-day trip to Las Vegas for each new member to attend an appraisal orientation seminar to show new member/agents the AAG method of completing their on-site appraisal templates". Apparently, once the local AAG appraiser has completed the vehicle inspection, taken photographs, and filled out the data-template, that documentation is forwarded to the AAG head office where the actual value is established, and the appraisal document is physically prepared and mailed to the customer. AAG does not offer its member/agents an insurance program.

A number of formal motions were presented and voted upon by members, including the unanimous acceptance of a motion by Allan Lewis that the P.A.V.E. Interim Board of Directors, comprised of Dean Renwick, Paul DelGrande, and Ron Folkes, should continue as First Term Directors.

At the noon hour, the Sixth Annual Conference saw all participants enjoying the magnificent Copper Creek Buffet Brunch, which was made possible partially through the generous financial support of Lant & Co. Insurance Brokers Ltd. Each guest was given a unique, pure chocolate, business card commemorating the Conference

The Sixth Annual Conference of the Professional Association of Vehicle Evaluators Inc. officially concluded at four o'clock.

Photography by Michael Moist

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The Appointment of
Mr. Ron E. Folkes, B. Com., LL.B.
as Legal Counsel

Dateline: Kleinburg, Ontario,
November 12th 2006

Mr. Ron E. Folkes, B. Com., LL.B.

The Professional Association of Vehicle Evaluators, Inc. (P.A.V.E.) was pleased to announce the appointment of Mr. Ron E. Folkes, B. Com., LL.B. as legal counsel, at its Sixth Annual Conference held at Copper Creek Golf Club in Kleinburg, Ontario on November 12, 2006.

Mr. Folkes was called to the Bar in 1974. He first practiced law with a Toronto Bay Street law firm specializing in vehicle insurance matters and personal injury, acting primarily on behalf of major Canadian insurers. During that time, Ron was editor of the insurance section of the Canadian Encyclopaedic Digest.

In 1978 Ron established his own law firm in Brampton where the majority of his practise has involved insurance matters and personal injury, since 1982.

During his career Ron has taken many cases to trial at all levels of court in Ontario and he has participated in several reported decisions of the Ontario Court of Appeal in insurance matters and municipal liability. He has conducted hearings before a number of administrative tribunals and currently has a number of matters in litigation before the Financial Services Commission of Ontario. During his career, Ron has also acted as counsel for, and director of a number of industry associations.

Ron may be reached by 'phone in his Brampton office at 905-457-2118, or by mail at Ron E. Folkes Barristers & Solicitors, Suite One, 14 Nelson Street West, Brampton, Ontario, L6X 1B7.

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ONTARIO CHAPTER of MODEL T FORD CLUB
CELEBRATES 3OTH ANNIVERSARY

Dateline: Alliston, Ontario April 22nd, 2006

Shown above are John Eagles (L), President, Ontario Chapter, Model T Ford Club International, Inc., Garry F. Potter, Past President, Model T Ford Club International, Inc., and D. Dean Renwick, President, Antique & Classic Auto Appraisal Service and a Charter Member of the Model T Ford Club's Ontario Chapter.

About eighty current members of the Ontario Chapter of the Model T Ford Club International, Inc. turned out at the Red Pine Inn in Alliston, Ontario for a dinner reception to recognize the Thirtieth Anniversary of the founding of the Ontario Chapter.

A few original charter members were on hand for the anniversary celebration including Mrs. Marion Schneider, wife of the late Willis "Porky" Schnieder, and D. Dean Renwick. Porky Schneider was one of the hardest working individuals involved in obtaining the Ontario Region Charter from the Club's Chicago Head Office, and promoting the Ford Model T segment of the hobby. Marion gave the guests a spirited account of their life together, starting out with their courtship, and honeymoon, which saw their road trip almost make it as far as Florida in the very early 1950's. Dean Renwick recounted the first formative meeting in Eddie Edwards' Dental Clinic on Dundas Street in Toronto in 1976 to have an Ontario Region recognized by the International Club, as well as telling the story of how he purchased his 1927 Doctors' Coupe in Sundridge, Ontario. Because Jack Morton's trailer wasn't roadworthy and available for rent at the time, Jack suggested Dean "do what they did in 1927 - drive it the 200 miles to Toronto", and that was how Dean learned to drive a Model T - and how he learned how to check a Model T's gas level on the southbound side of Hwy. 400 too!! Gordie Morton, Jack's son, told the anniversary guests "Jack still doesn't quite have that trailer ready for the road - but it's only been thirty five years"!

With 122 active members, the Ontario Chapter of the Club is one of the largest of the worldwide membership of the Model T Ford Club International, Inc. Information regarding club activities and membership can be obtained by contacting Jack or Joanne Eagles at jeagles@sympatico.ca or by telephone at 905-388-5961.

FIFTH ANNUAL GENERAL CONFERENCE
REPORT OF DISCUSSION

Copper Creek Golf Club Kleinburg, Ontario
Sunday, November 13th, 2005

The Fifth Annual General Conference of the Professional Association of Vehicle Evaluators (P.A.V.E.) was held at the prestigious Copper Creek Golf Club in Kleinburg, Ontario, just north of Toronto on Sunday, Novmeber 13th, 2005. The Conference which addressed a number of evaluation and insurance industry issues was attended by P.A.V.E. licenced Members, P.A.V.E. Advisory Board Members, and representatives from P.A.V.E.'s insurance industry partners. The day-long Conference was chaired by P.A.V.E. Founder, President, and CEO, D. Dean Renwick.

The licenced and insured Members participating in the Fifth Annual Conference were Duke Brown, President of Duke's Street Rods, Mississauga, Ontario; Robert Clark, Appraiser with Antique & Classic Auto Appraisal Service, Toronto; Mark J. F. Cross, President of Cross Automotive Appraisal Services, Milton, Ontario; Bruce C. Farrow, President of Road/Show Automotive Appraisals, Pickering, Ontario; Roger Kleinsmith, President of Roger's Auto, Welland, Ontario; Allan W. Lewis, President of Vintage Car Connection, Singhampton, Ontario; Jim Prowse a partner with London Collision Appraisal Services Limited, London, Ontario; Jeff Reynolds, Appraiser with Antique & Classic Auto Appraisal Service, Mississauga, Ontario; Michael C. Salter, President of Precision Sportscar Evaluations, North York, Ontario; Heiko Schilf, Associate Appraiser with Road/Show Automotive Appraisals, Mississauga, Ontario; and Tim Wickmann, Appraiser with Antique & Classic Auto Appraisal Service, Omemee, Ontario.

Two members of P.A.V.E.'s four-person Board of Advisors attending the Conference were Mike Conlon, Claim Manager for the Guarantee of North America Insurance Company, and prominent MOPAR collector, Paul E. DelGrande, Chairman, Corporate Impressions Group of Mississauga. P.A.V.E. Members and Advisors were again pleased to welcome Geoff. Coy, Manager, Lant & Co. Insurance Brokers Ltd. in Stouffville, who are Canada's largest, antique and special interest vehicle insurance market, Ed Cafferty - a long-time supporter of the initiatives of P.A.V.E. - who has recently retired after many years of service with the Royal/SunAlliance Insurance Group, and Ken Mills who is an appraisal consultant from Guelph, Ontario who is currently providing input to the GNA, and Edward Melnike, President, CyberAutoAds.com. Edward is the designer / webmaster for the P.A.V.E. web site www.trustpave.com

The ambitious program began sharply at 9:00 A.M. with the Opening Address given by P.A.V.E. President & CEO; D. Dean Renwick. Renwick commented on the seemingly slow growth of P.A.V.E. membership by referring to the fact that almost 90% of applicants for membership, licencing and insurance with P.A.V.E. are rejected for a variety of reasons. "Our growth pattern does not appear related to a lack of interest in our initiatives from within the existing vehicle appraisal industry", said Renwick. In order to stress the fact that success does not happen overnight, Renwick stated that this year marks the Twenty Fifth Anniversary of his founding of his own company; Antique & Classic Auto Appraisal Service. "Truly broad-based professional acceptance, and success are seldom achieved in only five years' time", Renwick told the group. He went on to state "it will be a result of P.A.V.E. Members' common vision, common purpose, and common determination, that leads us to achieve our common goals.

"I believe it is important for P.A.V.E. to move forward with an open mind as we work with our insurance industry partners. Let's not lose sight of what's important to these partners as we forge future alliances." Reflecting back five years, Renwick stated that while he had "not initially been in agreement with P.A.V.E. not developing close government ties, events have proven the majority of P.A.V.E. Members who voted to develop our own industry Self-Regulating Organization (SRO) to manage the licencing and regulatory responsibilities were on the right path. That decision was clearly correct for P.A.V.E. when we look at what is happening today within the Ontario Collision Repair Industry as it continues its attempts to forge government alliances", said Renwick.

"Clearly P.A.V.E. will not operate in a vacuum and is pleased to work with government agencies for the mutual benefit of all parties. One such P.A.V.E. initiative is the VIN VERIFICATION PROGRAM, which has recently received formal approval from the Ontario Ministry of Transportation. This initiative saw P.A.V.E. develop its own form whereby P.A.V.E. licenced appraisers are the only vehicle appraisers authorized by the Ministry to verify and correct VIN discrepancies on vehicles thirty years of age and older. It is expected an official announcement/press release of this initiative will be made jointly by the Ontario Minister of Transportation; The Honourable Harinder Takhar, and P.A.V.E.", explained Renwick.

A discussion regarding the effects of looming employment layoffs, and a nosedive of the North American economy, as they relate to an increase in insurance loss fraud was also held. Information presented at the Conference suggested the insurance industry is bracing for the inevitable surge in fraud in the looming tough economic times. One of the counter measures being considered by the insurance industry will be the development and implementation of much stricter underwriting measures, and clearly P.A.V.E. Members are at the forefront to help defuse the potential for fraudulent loss increases within the special interest vehicle market. Renwick told the meeting: "P.A.V.E. definitely stands at the forefront to help defuse that crisis by providing an extremely high level of Confidence through Competence to our insurance industry partners, and others".

One of the simplest options available to insurers at this time is their ability to carefully screen from who they will, and who they will not, accept appraisals. Appraisers with a history of overvaluing, incompetence, or a lack of integrity, must be identified, and acceptance of their future work refused by underwriters. Should a "refused" appraiser challenge the underwriter's decision, the underwriter could suggest the offending appraiser submit their credentials to P.A.V.E. for a professional second opinion by way of a membership application review. If successful in becoming a licenced P.A.V.E. Member, then - and only then - could the underwriter opt to reconsider their decision, if asked. Should the offending appraiser be turned down by P.A.V.E.'s new member review process, the offender stays on the underwriter's "do not accept" list. The Professional Association of Vehicle Evaluators remains committed to work with our insurance industry partners to ensure professional, reliable, and objective risk underwriting information is available to all insurers.

Renwick reviewed the benefits of P.A.V.E's unique Professional Errors & Omissions insurance program developed for the protection of appraisal Consumers, and P.A.V.E. Members. Dean's recent talks with his counterparts in the collision appraisal industry have underscored the importance of maintaining our E & O insurance. Continuation of that coverage requires each and every P.A.V.E. evaluation report continue to incorporate appropriate language, and clear documentation of fact. The insurance industry has now embarked on a program pursuing legal action and financial recovery against appraisers who complete title brand-assignment, and collision damage appraisals in an incompetent or dishonest manner. While the insurance industry is currently targeting collision damage appraisal issues, it is believed it will only be a matter of time before its focus for recovery broadens to include special interest vehicle evaluators who fail to measure up.

Member Jim Prowse provided this year's Conference with a litany of examples of "overvalued" vehicles currently being offered for sale. Jim calculated the average difference between "appraised", and "asking", values in the random sampling he provided to be approximately 43%. It is fair to suggest these examples could translate to far higher loss payments than would have resulted had professional appraisals been relied upon by insurers. Higher loss payments will eventually result in higher premiums.

The more than twenty examples presented by Mr. Prowse included a 1977 Mercedes Benz "450 SL" convertible "appraised at $39,500.00" being offered at "$25,900.00"; a 1991 Mustang "appraised at $27,000.00" being offered at "$10,900"; a 1982 Chevrolet "S-15" Pro-Street "appraised at $27,000.00" being offered at "$9,500.00", a 1980 Camaro "Z-28" "appraised at $31,000.00" being offered at "$13,000.00 O.B.O."; and a 1981 GMC pickup "appraised at $15,000.00" being offered at "$7,500.00".

P.A.V.E.'s insurance industry partners attending this Conference were aware of, and very concerned with, the ramifications of overvaluations in general, and specifically with pleasure boats, and antique and special interest vehicles insured with an OPCF 19-A "Agreed/Replacement Value" basis of loss settlement. While many overvaluations of real property appear to be the result of appraiser incompetence, there is growing industry concern some may be a deliberate attempt at fraud. "Both areas of concern are receiving close scrutiny by the general insurance industry, and P.A.V.E. remains committed to work with our insurance industry partners, and appraisal Consumers to provide the most competent, professional, and objective vehicle evaluation reports", said Renwick.

The practice of some non-P.A.V.E. appraisers who choose to promote themselves as being "Government Licenced" when no such designation exists, continues to be a concern to P.A.V.E. Members and appraisal Consumers. By advertising oneself as being "Government Licenced" the misleading, implied impression of an appraiser having achieved at least a minimum level of qualification, or competence testing is created in the minds of Consumers. In fact, no level of competence or integrity testing is involved in obtaining a Ministry "Registration Number". Members were assured the concerns of P.A.V.E. will continue to be made to the Ontario Ministry of Finance regarding the misuse of its "Appraisal Form Registration Numbering System".

Mike Conlon, Claims Manager of GNA, and Ken Mills an Appraisal Consultant, made presentations bringing P.A.V.E. Members up-to-date with respect to GNA's efforts to establish minimum requirements for appraisals being completed by non-P.A.V.E. appraisers who may be used by the GNA in areas were P.A.V.E. does not currently have licenced, insured Members. Mike assured the Conference that all P.A.V.E. licenced Members continue to enjoy "Preferred Vendor" status with his company.

Mike also brought printed hand-outs regarding the Ontario Ministry of Transportation's Mandatory Vehicle Branding Program. This is an area that has received considerable attention from P.A.V.E. Members as a result of the damaging rainstorm, which swept through southern Ontario on August 19th, resulting in many water-damaged vehicles being branded as "Irreparable". Discussion followed between Members and industry partners regarding appropriate levels of value reduction, which should be applied to "Salvage", and "Rebuilt", "Branded" vehicles. No consensus of value reduction was achieved at this meeting however it was clear to Conference participants the entire issue involving the Branding of an Ontario vehicle title is nebulous and unclear at this time.

Edward Melnike, President of CyberAutoAds.com was gratified to learn of Members' overwhelming enthusiasm for the P.A.V.E. web site at www.trustpave.com This site was created by Edward a number of years ago for the promotion of P.A.V.E. and it has worked very well. "Worth its weight in gold" is how Member Bruce Farrow described the site with respect to its ability to promote the initiatives of the organization, and to develop new business for individual Members. The Members formally asked Edward to design and implement a new, Members Discussion Room where P.A.V.E. Members can hold private internet discussions with fellow P.A.V.E. Members regarding any matters of concern including: unique vehicle identification and evaluation, client payment history queries, and procedural protocol.

The meeting broke at Noon when participants adjourned to the Copper Creek's main dining room where everyone enjoyed the outstanding buffet brunch. The generous financial support for the magnificent luncheon from one of our long-time, insurance industry supporters was very much appreciated.

Conference Participants reconvened in the Valley View Meeting Room shortly after 1:00 P.M. Mark Cross opened the afternoon session by presenting his experiences with the implementation of the new "VIN VERIFICATION PROGRAM". It was a result of Mark's original suggestion made at the 2004 Conference, which led P.A.V.E. to approach the Ontario Ministry of Transportation for its approval of the program.

Bruce Farrow chaired a discussion attempting to achieve some consistency among Members with the issue of modified vehicle depreciation values. There were clearly a great number of considerations on this subject, and no decision was made at this meeting.

Bruce also presented his suggestion that all P.A.V.E. Members should include a "Condition" rating, similar to that used in the internationally accepted "Old Cars Value Guide", as a component of each of our evaluation reports. The suggestion met with agreement of the Members, and appropriate language to describe the actual "Conditions", and an incorporation format will be developed by P.A.V.E. in due course.

Roger Kleinsmith raised his concern with the hiring of inexperienced individuals as "appraisers" by some Niagara-region collision appraisal companies. Some of these inexperienced people are now also moonlighting as "evaluation" appraisers and it is of considerable concern to Roger to have to compete on such an uneven playing field. Roger did indicate that in spite of his fees being considerably higher than most of his local competition, he has had a very busy year due to Consumers recognizing Roger's level of expertise as a professional appraiser.

President Renwick closed the Conference at approximately 4:00 P.M., and in his final remarks to Members asked them to maintain a professional image at all times as they continue their individual efforts to implement meaningful standards, and bring an even higher, more visible level of integrity to the vehicle evaluation industry throughout the coming year.

Front Row (L to R) Ken Mills, Guarantee of North America Appraisal Services Consultant; Tim Wickmann; Mike Conlon, Claim Manager, Guarantee of North America and Member P.A.V.E. Board of Advisors; D. Dean Renwick, P.A.V.E. Founder, President & CEO; Allan Lewis; Heiko Schilf; Geoff. Coy, Manager, Lant & Co. Insurance Brokers Ltd.; Edward Melnike, President, CyberAutoAds.com; and Duke Brown. Back Row (L to R) Jim Prowse; Ed Cafferty, recently retired Appraisal Supervisor, Royal/SunAlliance Insurance Group; Mark Cross; Robert Clark; Mike Salter; Paul DelGrande, Member P.A.V.E. Board of Advisors; Jeff Reynolds; Bruce Farrow; and Roger Kleinsmith. Absent: P.A.V.E. Members - Doug Adams; Brian Asbury; Wayne Copeland; Roland Glenn; Michael Holliday; Paul Morrison; Larry Shackleton; and Advisory Board Members - Jeffrey D. Gray, Barrister & Solicitor, and Sandra Notarianni, Historian, Ford Motor Co. of Canada Ltd.

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PRESS RELEASE

ANTIQUE & CLASSIC AUTO APPRAISAL SERVICE SPONSORS 150th GNE RECEPTION Doug Adams; Vice-President & General Manager, Antique & Classic Auto Appraisal Service in Wasaga Beach (L) is shown being thanked by Carl Wagner; 150th Committee Financial Development Chairman at Doug's recent announcement generously agreeing to sponsor a Wine & Cheese Reception to encourage major sponsor participation from local businesses in support of this year's historic 150th Annual GNE. The reception will be held at the GNE facility in early June.

Additional information regarding the 150th GNE, including advertising, sponsorship, and promotional opportunities may be obtained by contacting the Collingwood Agricultural Society at P.O. Box 122, Collingwood, Ontario, L9Y 3Z4, or by e-mail at pres@greatnorthernex.com

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EXCLUSIVE APPRAISAL SPONSOR CHOSEN

"We're extremely pleased to have been chosen as the exclusive vehicle appraisal sponsors for the 2005 series of Road Legends Cruisers Cruise Nights", said Wayne Copeland as he attended the first "Antique & Classic Auto Appraisal Service Sponsor's Appreciation Night" on Sunday, May 22nd, 2005. Reg. and Mary Paron along with their crew have long been recognized for putting in an unbelievable amount of time and effort to make their six (that's right SIX) weekly cruises throughout the Ajax, Whitby, Port Perry, Oshawa, and Lindsay areas come off as first class events.

Wayne was pleased to agree to become the exclusive auto appraisal sponsor for each of these events recognizing the unique and broad-based promotional opportunity being provided through his attendance at Road Legends events, as well as having permanent signage on each of the Road Legends' antique trucks which tour the area and attend each Cruise. Wayne was very emphatic when he said: "We've recognized the need to dramatically expand our book of appraisal business into the Whitby, Oshawa, Ajax, and Pickering areas. Road Legends Cruise Nights provide an excellent, cost-effective opportunity for us to make personal contact with vehicle owners in all of these communities".

Information on promotional opportunities with Road Legends Cruise Nights, which run every weeknight except Friday, from May through September, can be obtained by 'phoning Reg. and Mary's Oshawa office at 905-404-8811, or by visiting their web site at www.roadlegendscruisers.com

Antique & Classic Auto Appraisal Service is Canada's largest, special interest vehicle appraisal company whose appraisers are qualified, licenced, and insured through the Professional Association of Vehicle Evaluators (P.A.V.E.). Additional information on the company may be obtained by visiting its web site at www.antiqueandclassicappraisal.com or by 'phoning Wayne Copeland in his Lindsay office at 705-359-1888

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ANNOUNCEMENT

The Professional Association of Vehicle Evaluators is pleased to announce its recent licencing of Mr. Brian C. Asbury, President; BCA Services, as a professional, fully certified and insured, special interest vehicle evaluator specializing in wheeled and tracked military vehicles.

Since 1974 Mr. Asbury has owned and/or restored over 150 vintage military vehicles. Brian has been a member since the 1976 formation of the international Military Vehicle Preservation Association, and is a founding member of the Ontario Military Vehicle Association. He has also served as the past Editor of OMVA's publication "CMP Magazine". Having traveled extensively to military shows in Canada, USA, and Europe, Mr. Asbury has a truly comprehensive, internationally respected level of expertise within this segment of the collecting hobby.

BCA Services was founded by Mr. Asbury in 1985 and is involved in the selling of vintage vehicle parts to collectors around the world, providing vehicle appraisals, and supplying the film industry with picture vehicles from its large collection. BCA Services can be contacted by mail at P.O. Box 26, Milton, Ontario, L9T 2Y3, or by 'phoning Brian's office at 519-853-1738.

The Professional Association of Vehicle Evaluators (P.A.V.E.) was formed in 1996 by concerned vehicle appraisal industry members. P.A.V.E. is the Canadian appraisal industry's self-regulating organization (SRO) responsible for setting industry standards with respect to ethics, regulation, discipline, and licencing. P.A.V.E. members must strictly adhere to a written Code of Ethics, and are fully insured under a unique Professional Errors & Omissions policy ensuring a substantial level of integrity and protection for evaluation consumers.

Additional information on the Professional Association of Vehicle Evaluators and its licenced members may be obtained by visiting its web site at www.trustpave.com or by writing its Head Office at P.O. Box 201, 4918 Dundas Street West, Toronto, Ontario, M9A 4X2.

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The Founders and Members of the Professional Association of Vehicle Evaluators have been involved with collectible vehicles for many years (since many of today's collectibles sat "new" in the showrooms, in fact) and through those years have seen almost every type of poorly prepared, poorly documented, and overvalued vehicle report it has been possible to produce.

To be successfully licensed and accepted for membership in PAVE, appraisers most agree to perform their work on a professional basis, in accordance with the PAVE Code of Ethics, with their evaluation reports being completed in a narrative, typed style. PAVE appraisal and service fees, which are set by the individual appraiser, are NEVER based on the value of the vehicle. Wherever possible the PAVE appraiser is responsible for taking the photographs of the vehicle being appraised.

PAVE members' appraisals reflect the appraisers' in-depth knowledge of not only the vehicle they are appraising, but of the fundamentals of evaluation, and their detailed documentation can include comment on whether or not a vehicle is a "Numbers Matching" unit, or whether it is truly a factory-built "SS" model, for example. Providing details regarding factory paint; rust-free original bodies; and factory options are also areas where PAVE licensed appraisers excel. That same attention to detail will also apply when identifying replacement engines; extensive use of plastic body filler; and poor quality rechroming.

Much of the required content and appraisal report formats have been shaped with the help of PAVE's Founding Board of Advisors. The Members of the Board of Advisors are: Jeffrey D. Gray, prominent Toronto-based lawyer specializing in automotive litigation; Arnold M. Korne, long-time international classic car collector and past national president of the Antique & Classic Car Club of Canada; Tony Lant, Founder and President of the "Silver Wheel" and "Custom Wheel" insurance programs for antique and collectible vehicles; and Ms. Sandra Notarianni, the official historian for the Ford Motor Co. of Canada Ltd. Ms. Notarianni is based at Ford's Oakville, Ontario Head Office.

EVALUATORS' SECOND CONFERENCE SUCCESSFUL!

The Professional Association of Vehicle Evaluators (P.A.V.E.) held its second Annual General Conference at the Oakville Holiday Inn on November 10, 2002. Licenced P.A.V.E. Members and industry partner guests took time out for a group photo. Shown at the day-long conference are - Front Row (l) to (r) Jeff Reynolds; Doug. Adams; Bob Nicholson; Wayne Copeland; Tony Lant, President Lant & Co. Insurance Brokers; Paul DelGrande, P.A.V.E. Board of Advisors. Back Row (l) to (r) Julius Suraski, Director Automobile Repair and Regulatory Council (A.R.R.C.); Mike Conlon, Claims Manager Guarantee of North America Insurance Company; Paul Morrison; Edward Melnike, President CyberAutoAds.com; Bruce Farrow; Duke Brown; Dean Renwick, President & CEO - P.A.V.E ; Roger Kleinsmith; Jim Prowse; Robert Clark; and Roland Glenn. Absent: Mike Salter, Larry Shackleton.

The Professional Association of Vehicle Evaluators (P.A.V.E.) is the official self-regulating organization representing qualified, professional, independent vehicle appraisers in Canada.

The organization's mandate is to provide meaningful Consumer Protection measures through the qualifying, licencing, regulation, discipline, and insurance, of special interest vehicle appraisers. The second Annual General Conference was held on Sunday, November 10th, 2002 at the Oakville, Ontario, Holiday Inn. The Conference welcomed industry partners, Mike Conlon, Claims Manager of the Guarantee of North American Insurance Co. from Woodstock, Ontario, Tony Lant, President of Lant & Co. Insurance Brokers Ltd. Stouffville, Ontario, Edward Melnike, President of CyberAutoAds, Toronto who is the award-winning designer of P.A.V.E.'s web site at www.trustpave.com, and Julius Suraski, Director of the Automobile Repair and Regulatory Council (A.R.R.C.) in Toronto.

P.A.V.E. President & CEO Dean Renwick's opening address stressed that while membership and licencing application is open to any of the almost three hundred independent individuals who operate in the Province of Ontario, plus practitioners in other Provinces and Territories, P.A.V.E. membership and licencing is not granted on a "puppy mill" basis. Renwick stressed all P.A.V.E. Members must strictly adhere to the organization's Code of Ethics in all their appraisal dealings. It was reported at the Conference that one early P.A.V.E. Member had his membership, licence and Errors & Omissions insurance terminated during the past year for conduct contrary to the Code of Ethics.

The past year has seen tremendous activity within the Canadian vehicle appraisal industry and Renwick attributes this to large numbers of North American Consumers pulling their investment funds out of the stock market and putting them into tangible things like collector vehicles. That, coupled with the "unrest within the insurance market has resulted in unprecedented increases in business volumes for appraisers – both P.A.V.E. licenced, and unlicenced - from all across the Province of Ontario that I spoke with during the past year" said Renwick. Tony Lant, President of Lant & Co. Insurance Brokers, Ltd. was an important industry partner who attended the Conference. Tony is the founder of the successful "Silver Wheels" and "Custom Wheels" insurance programs, which are the largest, Canadian, specialty insurance markets for collector vehicles. While Tony's company celebrates its 25th Anniversary as the industry leader, he also reported a substantial increase in business during the past year.

Mike Conlon, Claims Manager of the Guarantee of North America Insurance Co. in Woodstock, Ontario was attending his second P.A.V.E. conference as an industry partner. Mike has long supported P.A.V.E.'s Consumer Protection initiatives as he realizes the general insurance industry is, in fact, the largest ultimate consumer of vehicle evaluation reports. Mike supports the P.A.V.E. proposal to implement a standardized appraisal format, which will be brought "on-stream" over the next year.

Julius Suraski, Director of the Automobile Repair & Regulatory Council (A.R.R.C.) is one of that organization's leaders responsible for the development and passage into second reading of The Collision Repair Standards Act (Bill 186). This is an Ontario legislative initiative designed to "level the playing" field within the automobile collision appraisal and repair industry. In recognition of his efforts with the Professional Association of Vehicle Evaluators, Dean Renwick was approached by A.R.R.C. and asked to consider sitting on their first Board of Advisors.

On November 7, 2002 Mr. Renwick made a verbal submission in support of Bill 186, to the Ontario Legislative Assembly's Standing Committee on Finance and Economic Affairs at Queens' Park in Toronto. When passed into legislation, it is expected Bill 186 will ensure a high standard of competence, accountability, and environmental protection is met in not only the collision repair and appraisal industry, but also in the automobile restoration industry.

A number of additional measures to enhance protection for vehicle appraisal consumers were discussed at the Second Conference. These included development of an annual "Peer Review" program to study the evaluation work of all P.A.V.E. members, as well as the preparation of a submission of a formal request for a provincial government investigation into the misuse of Ministry of Finance "Registration Numbers" by a number of unlicenced vehicle appraisers, whose ongoing misrepresentation of their qualification has resulted in confusion for Ontario appraisal Consumers.

The Conference concluded by challenging P.A.V.E. Members to approach independent vehicle appraisers throughout the coming year, with the mandate that each Member encourages one additional new Member to join the organization.

P.A.V.E. FOUNDER SIGNS CONSUMER PROTECTION INSURANCE PROGRAM

Shown at the signing of the contract are P.A.V.E. Founder; D. Dean Renwick (C), with Fred McLean (L), President of Moore-McLean Corporate Insurance Ltd., and Doug Sparrow (R), the Moore-McLean Broker who handled the negotiations.

Dateline Toronto, July 7, 2000

"An important Canadian Consumer protection challenge has finally been met" is how D. Dean Renwick, Founder and President of the Professional Association of Vehicle Evaluators described his arduous, two year negotiation to arrange a broad yet cost effective Errors & Omissions insurance package for the protection of Consumers and P.A.V.E. licensed vehicle appraisers. "My own company; Antique & Classic Auto Appraisal Service had that form of coverage since 1981 however, the carrier that served us for all those years ceased to write that class of business in 1998 so I had to start out fresh to find a new Broker and carrier who would take a realistic approach to underwriting and pricing the P.A.V.E. account. One of the toughest things I had to do was convince the Underwriters I was approaching, of the exceptionally high quality of the P.A.V.E. licensees, as opposed to hundreds of others who are operating in an unregulated industry", said Renwick.

Mr. Fred McLean, President of Toronto-based Moore-McLean Corporate Insurance Ltd. was pleased to work with his in house Broker; Doug Sparrow as the market was narrowed to the ENCON Group Inc. of Ottawa. Working with Encon's Michael Golding, and Vice-President; Diane Paquette resulted in a cost effective, unique, Errors & Omissions package. "Encon's expertise in the Errors & Omissions field enabled us to understand both the risk, and the goals of the P.A.V.E. organization, and we're proud to be part of their development" said Ms. Paquette.

Moore-McLean Corporate Insurance Ltd. is a major Canadian insurance broker handling all lines of commercial insurance, and can be reached by telephone at (416) 364-4000.

The Professional Association of Vehicle Evaluators is the official licensing and regulatory organization representing the special interest vehicle appraisal industry and can be reached by writing to their Toronto Head Office at 3300 Bloor Street West, P.O. Box 90032, TORONTO, Ontario, M8X 2Y1; or by visiting their web site at www.trustpave.com

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