Arizona Adjuster Practice Exam

When an adjuster writes an estimate that includes replacing damaged parts with aftermarket parts, what term also refers to these parts?

1. OEM parts

2. Factory parts

3. Non-OEM parts

4. Reconditioned parts

The correct answer is: Non-OEM parts

Aftermarket parts, which are often used in vehicle repairs, are better known as non-OEM parts. The term "non-OEM" stands for "non-original equipment manufacturer." This means that the parts are not made by the vehicle's original manufacturer but rather by a third party. Non-OEM parts may provide a cost-effective alternative to original equipment manufacturer (OEM) parts, which are produced by the original makers of the vehicle. Using non-OEM parts can be a common practice in the insurance industry to manage costs without compromising quality significantly. In the context of an adjuster's estimate, properly identifying these parts as non-OEM helps clarify to the policyholder and stakeholders that the repair will use parts that are not sourced directly from the vehicle manufacturer. In contrast, OEM parts and factory parts refer specifically to those produced by the original manufacturers, often at a higher price. Reconditioned parts are those that have been restored to working order but may not fit the definition of aftermarket or non-OEM parts, as they can come from various sources including original manufacturers.