NEW 'DCS' WARRANTY CLAIM MEMORANDUM

We are pleased to announce that a completely new Warranty Claim Credit Memorandum has been developed that will feature transmittal of Claim data via the Dealer Communications System (DCS). The transmitted memo will reach DCS dealers the same week as the claims were processed, i.e., the Claim Memo which is dated each Friday should be received on Wednesday or Thursday of that same week. This will allow for much faster claim reconciliation as well as correction and resubmittal of rejected claims. Non-DCS dealers will receive this new Claim Memorandum through the mail as in the past.

The new Claim Memorandum will include credits for Warranty, Campaign, Transportation and Value Protection Plan (VPP) claims in one section instead of three separate sections as in the current Claim Memo. Debit activity will follow the credit section. All entries will appear in repair order number sequence and will contain the following data as per the attached sample:

- Dealer code number, Claim Memorandum number and date and page number - R.O. number - Vehicle Identification (VIN) number - Document number - For non-DCS Dealers the number will be the pre-printed number from the paper document. For DCS Dealers the six character number will be automatically generated. The first three characters represent the Julian date when the claim was transmitted. The last three characters represent the sequence in which the claims were transmitted that day. - Line number - Labor Operation number - Parts credit - Labor credit - Net Item credit - Credit requested - Error (credit issued vs. credit requested) - Deductible amount (where applicable) - total net credit - Claim type - Authorization code - Reject message and code number when applicable (reference R.O. and C.M.number for duplication, comeback and mileage roll-back denials will also be indicated).

At the end of each Claim Memorandum a recap will be provided and include the following data:

- Dealers current warranty labor rate and effective date - Total warranty and campaign claim credit - Total transportation claim credit - Total VPP claim credit - Total Gold Key Inspection claim credit - Total of the above credits - Total Warranty/Camapign/VPP/Gold Key claim debits

- Total Transportation claim debits - Total of all debits - Net credit (or debit) issued on the C.M. - Average age of Warranty/Campaign/VPP/Gold Key claims paid on C.M. (R.O. date vs. date received). - Average age of Transportation claims paid on C.M. (R.O. date vs. date received). - Total number of all claims submitted on C.M., total paid and percent paid of those submitted. - Number of all rejected claims and percent rejected of those submitted. - Number of claims denied and percent of total. - Number of claims being reviewed at Cadillac and percent of total. - A listing of ail reject codes for the C.M. including:

Reject code Error description Number rejected Reject (R) or denial (D) indicator Percent of total rejects

This condensed, yet comprehensive claim memo provides ample detail for reconciliation with the added benefit of electronic data transmission. DCS dealers should receive this memo three to six working days sooner than the present Claim Memo, which is dependent on mail service that varies greatly throughout the country. The single recap page will also allow for easier reconciliation against the monthly Open Account Statements.

Access for printing out the detail will be through the Mailbox Inquiry application. The Claim Memorandum will be identified by the name "CWARCREDIT". The Claim Memo should be printed at a time when the printer is not required for other apllications in order to avoid conflicts. This is extremely important for larger volume dealers as printing time can be lengthy.

It is anticipated that this new memo will be provided effective with Claim Memo number 631 dated August 1, 1986, and should be received via DCS by July 30 or 31. A detailed section on usage of the new DCS Warranty Claim Memorandum will be included in the new Warranty and Transportation Claim Preparation Manual, which is scheduled for publication in September.

General Motors bulletins are intended for use by professional technicians, not a "do-it-yourselfer". They are written to inform those technicians of conditions that may occur on some vehicles, or to provide information that could assist in the proper service of a vehicle. Properly trained technicians have the equipment, tools, safety instructions and know-how to do a job properly and safely. If a condition is described, do not assume that the bulletin applies to your vehicle, or that your vehicle will have that condition. See a General Motors dealer servicing your brand of General Motors vehicle for information on whether your vehicle may benefit from the information.