Research Summary
What the Numbers Actually Trace Back To
NAIC Model Regulation 902 requires any valuation database an insurer uses to generate values for at least 85% of all makes and models from the last 15 model years.
ADAS sensor recalibration now appears on 35.6% of all collision repair estimates, up from 26.9% a year prior, pushing more repair bills past the total-loss line.
Under current I-CAR best practices, any structural steel above 600 megapascals of tensile strength cannot be straightened at all — bent or kinked, it must be replaced.
The Foundation: Actual Cash Value, Not Purchase Price
Every auto insurance payout traces back to a single governing idea: the Principle of Indemnity. The policy exists to restore the driver to the exact financial position they occupied the moment before the crash — no better, no worse.[1] That means the insurer does not owe a brand-new replacement car, and it does not owe whatever the driver happened to pay for the car originally. It owes Actual Cash Value (ACV) — the fair market price at which a willing buyer and willing seller would have traded that specific vehicle in that specific condition, in the local market, immediately before the loss.[2]
This is different from Replacement Cost Value, the framework standard in most homeowners policies, which pays what it costs to buy the exact item brand new today with no deduction for wear. Standard auto collision and comprehensive coverage almost never uses that model.[5] Because ACV bakes in depreciation for age and mileage, it is routinely lower than what remains owed on a loan. A driver who owes $40,000 but whose car has depreciated to a $33,000 ACV is left covering the $7,000 gap personally — the exact scenario Guaranteed Auto Protection (GAP) insurance exists to close.[7]
The purchase price itself carries no special weight. A buyer who negotiates a $17,000 car down to $15,000 has generated $2,000 in instant equity, and if that car is destroyed the next day, the insurer still owes the full $17,000 fair market value — paying only the discounted purchase price would leave the driver unable to replace the car on the open market.[1] The receipt is useful evidence of the car’s condition and options at purchase, but it is not a payout cap.
The Regulatory Floor: NAIC Model Regulation 902
Insurance is regulated state by state, but the National Association of Insurance Commissioners (NAIC) — the standard-setting body of the chief insurance regulators from all 50 states, the District of Columbia, and U.S. territories — publishes model rules that most states adopt to keep the process consistent.[6] Its Unfair Claims Settlement Practices framework and Model Regulation 902 set firm procedural deadlines: within 21 days of a completed proof of loss, the insurer must say whether the claim is accepted; if accepted and undisputed, payment is due within 30 days; and an unresolved investigation requires a status update every 45 days.[14]
The same regulation pre-approves exactly four methods an adjuster may use to calculate a total loss ACV.
Regulatory Standard
NAIC-Approved ACV Valuation Methods
| Method | How It Works |
|---|---|
| The Replacement Option | The insurer offers a comparable car at a licensed local dealer — same make, similar year and body style, equal or better condition — and covers all taxes and transfer fees. |
| Guide Source Method | The adjuster averages the retail book value from at least two independent, state-approved guides (such as NADA or Kelley Blue Book), then adjusts for mileage, options, and prior damage. |
| Actual Cost Method | The insurer prices a comparable vehicle actually listed for sale in the local market, expanding to nearby metro areas if none is available locally. |
| Dealer Quotation Method | The adjuster collects written price quotes for a comparable vehicle from at least two licensed local dealers and averages the two figures. |
The regulation also constrains the software itself: any valuation database an insurer relies on must generate statistically valid values for at least 85% of all makes and models from the last 15 model years, and any deduction for prior wear — known in the industry as “betterment” — must be itemized in writing and fully explained to the vehicle owner rather than applied as an unexplained lump-sum cut.[14]
The Line Between Repair and Total Loss
Before ACV even matters, the adjuster has to answer a threshold question: is this car worth fixing? That decision is not a judgment call — it is a fixed equation set by state law, and it runs through one of two models.[9]
A Total Loss Threshold (TLT) state sets a fixed percentage of ACV as the tripwire. If the repair estimate exceeds that percentage, state law requires the insurer to total the car, full stop. Alabama sets that line at 75% — a $10,000 car must be totaled once repairs hit $7,500 — while Texas sets it all the way at 100%, meaning the repair bill has to equal the entire car’s value before a total loss is mandatory.[17] States without a fixed percentage, including New York and California, use the Total Loss Formula (TLF) instead, which adds a third variable: salvage value, the amount the wrecked frame will fetch at a scrap and parts auction. Under the TLF, a car is totaled once repair cost plus salvage value exceeds ACV.[9] Because salvage value typically runs 20% to 25% of a car’s value, the TLF math usually lands in the same 75%-to-80%-of-ACV range as a fixed threshold state, even without a stated percentage.
State-by-State
Total Loss Threshold vs. Formula, by Example State
| State | System | Trigger |
|---|---|---|
| Alabama | Threshold | 75% of ACV |
| Texas | Threshold | 100% of ACV |
| Colorado | Threshold | 100% of ACV |
| Florida | Threshold | 80% of ACV |
| New York | Formula (TLF) | Repair cost + salvage value > ACV |
| California | Formula (TLF) | Repair cost + salvage value > ACV |
For a closer look at exactly how this math plays out on a real category of claims — including why a hailstorm can total a mechanically sound car — see our companion report on why hail damage totals so many cars.
Pricing the Repair: ASE Estimating and the Kink vs. Bend Rule
Before either total-loss formula can run, someone has to price the physical repair, and that job belongs to an estimator typically holding an ASE B6 certification in Damage Analysis and Estimating.[21] The ASE B6 standard requires an “inside out” sequence: the estimator traces the path of kinetic energy from the point of impact into the vehicle’s hidden structure, using a tram gauge — a tool that takes precise point-to-point measurements across the front cage — to detect a frame pushed out of square.[22]
What the estimator finds along that structural frame decides whether the part gets pulled back into shape or thrown away entirely, and that decision has been rewritten by modern metallurgy. For decades, the collision-repair industry followed I-CAR’s “kink vs. bend” rule: a gradual bend could be straightened with a hydraulic frame machine, while a sharp, short-radius kink meant the section had to be cut out and replaced.[30] Automakers have since shifted to Advanced and Ultra-High-Strength Steels (AHSS/UHSS) — alloys that can exceed 600 megapascals of tensile strength, roughly 87,000 pounds per square inch, nearly three times the strength of the mild steel the original rule was written for.[33] Under current I-CAR practice, any part built from steel above that 600 MPa line cannot be straightened at all, bent or kinked, because pulling or heating it destroys its molecular structure and introduces micro-cracking that a visual inspection cannot catch.[30] The same logic applies even more strictly to aluminum crush structures, which do not bend back into shape — they fracture and tear — so any deformed aluminum component is simply replaced.[34] Because replacing a structural section requires factory-level welding, structural adhesive, and expensive parts, a single kinked high-strength door beam can push a cosmetically minor-looking crash straight past a state’s Total Loss Threshold.
The New Cost Driver: ADAS Sensor Calibration
The single biggest force pushing modern repair bills toward the total-loss line is Advanced Driver Assistance Systems (ADAS) — the network of forward-facing cameras, radar, and ultrasonic sensors behind the glass, grille, and bumpers that power automatic emergency braking, lane-departure warning, and blind-spot monitoring.[37] NHTSA estimates these technologies have cut overall fatality risk by 64%, but the sensors are sensitive enough that a superficial fender-bender can knock them out of alignment.[42] A radar sensor misaligned by a fraction of a degree can miss a stopped car ahead, or trigger a phantom emergency stop for an obstacle that is not there — so recalibration to the exact factory specification is mandatory before the repair is complete, either in a static bay using precisely placed target boards or dynamically, by driving the car at set speeds on marked roads while a diagnostic tool watches the system relearn.[37]
Repair Cost Data
ADAS Repair Cost by Collision Scenario
| Collision Scenario | Avg. ADAS Component/Calibration Cost | % of Total Repair Estimate |
|---|---|---|
| Frontal collision (radar sensor replacement) | $1,540.92 | 13.2% |
| Side mirror replacement (blind-spot camera) | $1,067.42 | 70.8% |
| Rear collision (ultrasonic sensors) | $684.63 | 40.9% |
| Windshield replacement (camera aiming) | $360.00 | 25.4% |
A forward radar sensor alone can cost $390 to $1,559 depending on the vehicle’s origin of assembly, and a claim requiring multiple calibrations runs nearly 40% longer — up to 5.5 additional days — than one that does not.[41] Stack several of those line items onto an already-damaged bumper or door, and a repair that would have been routine on a 2015 model year car crosses a 2026 model year car’s Total Loss Threshold instead.
Keeping Repairs Under the Line: OEM, LKQ, and CAPA Parts
When a car is still repairable, the adjuster’s next lever for staying under the Total Loss Threshold is which parts go on the estimate. Original Equipment Manufacturer (OEM) parts, made by the automaker itself, guarantee the exact fit and crash performance of the factory part but cost the most.[46] Like Kind and Quality (LKQ) parts are genuine OEM components harvested from salvage vehicles, offering factory fitment at a lower price but with prior wear built in, and third-party aftermarket parts run 20% to 50% cheaper than OEM.[48]
Because uncertified aftermarket parts can fit poorly or perform worse in a crash, the industry relies on Certified Automotive Parts Association (CAPA) testing, which requires an aftermarket bumper, hood, or fender to prove it is functionally equivalent to the OEM part in material, fit, and crash-energy absorption — each certified part carries a tamper-evident yellow-and-blue seal with a tearable serial tab for the repair record.[48] The Insurance Institute for Highway Safety has crash-tested high-quality aftermarket parts and found them performing on par with OEM in structural tests, which is why specifying CAPA-certified cosmetic panels — while reserving OEM parts for ADAS sensors, electrical components, and structural steel where calibration accuracy matters most — is often the single line-item change that keeps a repair estimate under a state’s Total Loss Threshold.[46]
The Valuation Engine: CCC, Mitchell, and Audatex
Once repair costs cross the state’s threshold or formula, the adjuster stops pricing repairs and pivots entirely to ACV. That number is rarely calculated by hand — it comes out of one of three software platforms that together dominate the U.S. market: CCC Intelligent Solutions (CCC One), Mitchell International, and Audatex. The concentration is significant enough that in 2008 the Federal Trade Commission moved to block a proposed $1.4 billion merger between CCC and Mitchell, citing the risk of an illegal duopoly over the entire total-loss valuation market.[52]
The software follows a consistent sequence. It decodes the Vehicle Identification Number to pin down the exact year, make, model, trim, and factory options, then scans local dealership listings and recent sales for comparable vehicles sold or listed within roughly the last 90 days.[9] Because no two used cars match exactly, the software then adds or subtracts dollar amounts to equalize the comps to the totaled car — a comp with 30,000 more miles than the totaled car gets a value bump applied to the totaled car’s estimate to account for the mileage gap — before applying condition deductions based on the adjuster’s physical inspection.
That inspection is not a subjective gut call. Platforms like CCC One require the adjuster to grade paint, sheet metal, tires, and interior into one of four fixed tiers, each bound to precise numeric thresholds. Tire wear grading illustrates the method: a new tire has an 11/32-inch tread depth, and the adjuster divides the measured remaining tread by that baseline.[28]
Inspection Standard
CCC Tire Condition Grading Tiers
| Condition Tier | Remaining Tread Depth |
|---|---|
| Exceptional | Over 90% of new tread remaining (e.g., 10/32") |
| Above Average | 69% to 90% of new tread remaining (e.g., 8/32") |
| Average | 41% to 68% of new tread remaining (e.g., 5/32") |
| Below Average | 40% or less of new tread remaining (e.g., 3/32") |
Interior condition follows the same structured logic for a 5-to-9-year-old vehicle: an “Average” rating tolerates lightly soiled carpets and a few small dashboard scratches, while a “Below Average” rating requires documented stains, multiple large tears, and broken components.[28] Documentation backs every step: estimators photograph damage from eight standard angles, pair each photo to its corresponding estimate line, and run pre- and post-repair diagnostic scans to confirm airbag modules and impact sensors still function correctly.[44] Increasingly, an AI model does the first pass on that documentation — segmenting the damaged parts from submitted photos, classifying the damage type and severity, and routing obvious total losses straight to a specialized adjuster while minor damage gets an automated preliminary estimate.[45]
Where the Algorithm Gets Challenged: Projected Sold Adjustments
The software-driven model has drawn nationwide class-action litigation over a specific line item found in Mitchell and Audatex reports: the “Projected Sold Adjustment” (PSA), sometimes called a Typical Negotiation Adjustment. When the software pulls a dealer’s advertised list price for a comparable car, it then assumes the buyer would have negotiated that price down, and strips roughly 6% to 7% off every comparable’s value before calculating the final ACV.[57] Consumer attorneys argue the adjustment is arbitrary and ignores modern no-haggle pricing and inventory-shortage market conditions where cars routinely sell at full asking price.
In July 2025, the U.S. Court of Appeals for the Third Circuit ruled on this question directly in Drummond v. Progressive, a case built on Pennsylvania contract law. The district court had certified a class action on the theory that using a PSA at all was a categorical breach of contract. The Third Circuit reversed, holding that an insurer’s only contractual obligation is to pay the vehicle’s true ACV — using a downward adjustment as an intermediate step in the math is not itself a breach.[64] Because Progressive’s final number blended the PSA-adjusted Mitchell figure with a separate NADA book value that carried no PSA, and then added money back in for condition or upgrades, many consumers likely still received a final payout at or above true ACV despite the PSA being used somewhere in the process. The court held that proving an actual underpayment requires a vehicle-by-vehicle inquiry — making the claim unsuitable for a single mass class action, even though an individual driver can still challenge their own specific payout.[64]
A second, related fight involves “labor depreciation.” Insurers routinely depreciate the physical parts installed during a repair, but some have also tried to depreciate the labor cost of installing them. Federal courts in Missouri (Scott v. Safeco Ins. Co.) and Arizona (Shumway v. Allstate) have both ruled against that practice, holding that labor cannot be depreciated in an ACV calculation unless the policy contains explicit language allowing it.[65]
After a Repair: Diminished Value and the 17c Formula
A car that gets repaired rather than totaled can still cost its owner money later. Diminished Value (DV) is the gap between what a repaired car is worth and what an identical, never-wrecked car is worth — a gap that exists even when the repair used OEM parts and factory procedures, simply because a buyer checking the vehicle history will pay less for a car with a crash on record.[8] The industry sorts DV into three types: immediate DV, the value lost the instant the crash happens, before any repair; repair-related DV, caused specifically by visible welds or non-OEM parts; and inherent DV, the residual stigma discount that survives even a flawless repair.[19]
To put a number on inherent DV, the industry widely uses the “17c formula,” a four-step calculation named for the court case that popularized it. It starts from the base pre-accident market value, applies a flat 10% cap on the assumption that accident stigma never erases more than a tenth of a car’s value, multiplies by a damage-severity factor — 0.25 for minor damage, 0.50 for moderate, 1.00 for severe structural damage — and then multiplies again by a mileage factor that scales from 1.0 for a new car down to 0.0 for a car past 100,000 miles.[8] Consumer advocates criticize both the 10% cap, calling it an arbitrary payout ceiling, and the mileage multiplier, arguing it double-counts mileage that the base market value already reflected in step one.
Disputing the Number: The Appraisal Clause and the Umpire
A driver who believes the software-generated ACV is too low is not stuck accepting it or filing a lawsuit. Nearly every standard auto policy contains an Appraisal Clause, sometimes called a Right to Appraisal — a binding alternative dispute mechanism available specifically for first-party claims, meaning a claim against the driver’s own policy rather than a claim against an at-fault driver’s insurer.[67]
Invoking it hands the dispute to independent experts rather than a courtroom. The policyholder hires and pays for their own licensed appraiser; the insurer does the same. The two appraisers independently analyze the market data, correct any mileage or trim errors, and try to agree on a number.[68] If they cannot agree, they jointly select a neutral third party called the Umpire, who reviews both submissions and issues a final determination. The decision becomes legally binding the moment any two of the three parties — the two appraisers, or one appraiser plus the Umpire — agree on a figure.[70] Pennsylvania regulation, for example, requires the completed evaluation report to reach the consumer within 5 working days and to include applicable sales tax in any replacement-vehicle figure.[15]
Independent appraisers and umpires are expected to follow the Uniform Standards of Professional Appraisal Practice (USPAP), the appraisal industry’s baseline standard, established by The Appraisal Foundation under Congressional authorization.[66] A USPAP-compliant appraisal cannot rely on hidden algorithms or an unexplained deduction — it has to show verified comparable sales, documented market conditions, and a specific condition evaluation, which is exactly the paper trail a driver needs if they intend to push back on an insurer’s number.
Frequently Asked Questions
How do insurance adjusters determine the value of a car?
Adjusters calculate Actual Cash Value using algorithmic software — mainly CCC One, Mitchell, or Audatex — that decodes the VIN, pulls local comparable sales, and adjusts for mileage, options, and condition. If repair costs exceed the state's Total Loss Threshold or Formula, the insurer stops repairing and pays that ACV figure instead.
What is Actual Cash Value in a car insurance claim?
Actual Cash Value is the fair market price the vehicle would have sold for immediately before the crash — what a willing local buyer would pay a willing seller. It is not the original purchase price and not the cost of a brand-new replacement; it is the used-market price of that exact car, in that exact condition, the moment before it was damaged.
What is the difference between a Total Loss Threshold and a Total Loss Formula?
A Total Loss Threshold state sets a fixed percentage of ACV — commonly 60% to 100% — that repair costs must exceed before the insurer must total the car. A Total Loss Formula state, like New York or California, instead adds the estimated salvage value to the repair cost; if that sum exceeds the ACV, the car is totaled, which in practice usually triggers a total loss once damage reaches roughly 75% to 80% of value.
Why do ADAS sensors cause cars to be totaled more often?
Advanced Driver Assistance System cameras and radar sensors sit behind the windshield, grille, and bumpers, and even minor cosmetic damage can misalign them. Recalibrating them is mandatory before the car is safe to drive, and industry data shows ADAS recalibration now appears on over a third of all collision repair estimates, pushing the repair bill toward the Total Loss Threshold faster than in pre-ADAS vehicles.
What is the Appraisal Clause and how does it help a policyholder dispute a low valuation?
The Appraisal Clause is a binding dispute-resolution process built into most auto policies for first-party claims. Each side hires its own independent appraiser; if the two disagree, they jointly select a neutral Umpire, and the final Actual Cash Value becomes binding once any two of the three parties agree on a number.
Can an insurance company use a downward market adjustment to lower my payout?
Some valuation software applies a "Projected Sold Adjustment" that discounts comparable vehicles by roughly 6% to 7% below their advertised list price, on the theory that buyers negotiate. Consumer attorneys have challenged this practice nationwide, but the Third Circuit's 2025 ruling in Drummond v. Progressive held that using the adjustment as an intermediate calculation step is not itself a breach of contract — only a final payout below true ACV is.
Legal Disclaimer
This content is provided for informational and educational research purposes only. It does not constitute legal or financial advice and does not create an attorney-client relationship. Valuation software, total-loss thresholds, and claims regulations vary by state and are subject to change; verify current rules with your insurer, your state’s department of insurance, or a licensed independent appraiser before relying on a specific figure.
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Primary Source Directory
- The “Purchase Price” Myth: Why Insurance Adjusters Are Wrong About Actual Cash Value (secondary): Appraisal Engine. Industry explainer on the Principle of Indemnity and why purchase price does not cap an ACV payout.
- What Is “Actual Cash Value” in a Car Accident Claim? (secondary): Nolo. Legal-encyclopedia explainer defining ACV as fair market value immediately preceding a loss.
- Actual Cash Value vs. Replacement Cost in Claims (secondary): Insurance Claims Authority. Consumer explainer distinguishing ACV from Replacement Cost Value.
- What’s the Difference Between Actual Cash Value Coverage and Replacement Cost Coverage? (Official): National Association of Insurance Commissioners. Official consumer explainer describing NAIC’s standard-setting role and the ACV/RCV distinction.
- Total Loss ≠ Total Payout (secondary): The Moudgil Injury Law Firm. Consumer guide covering GAP insurance and the loan-versus-ACV gap.
- Total Loss ≠ Total Payout — 17c Formula (secondary): The Moudgil Injury Law Firm. Same source as above; also documents the 17c diminished-value calculation steps.
- When Is a Vehicle Considered a Total Loss After a Crash? (secondary): K&N Insurance Brokerage. Consumer guide explaining the Total Loss Threshold and Total Loss Formula models and the valuation-software comp process.
- MO-902-1 Unfair Property/Casualty Claims Settlement Practices Model Regulation (Official): National Association of Insurance Commissioners. Official model regulation text setting the four approved ACV methods, the 85% database coverage floor, and claims-handling timelines.
- 31 Pa. Code § 62.3 — Applicable Standards for Appraisal (Official): Commonwealth of Pennsylvania, via Law.Cornell.Edu. Codified regulation setting the 5-working-day appraisal report deadline and sales-tax inclusion rule.
- Totaled Car: What It Means and How Insurance Companies Determine It (industry): GEICO. Consumer guide with state Total Loss Threshold examples for Alabama and Texas.
- CA Collision Repair Rights | Total Loss & Diminished Value Guide (secondary): ERP SoCal. Consumer guide describing the three categories of diminished value.
- Remote Auto Estimator Hiring Guide for Businesses (secondary): ZipRecruiter. Industry hiring guide describing the ASE B6 Damage Analysis and Estimating certification.
- ASE B6 Test — Damage Analysis & Estimating (secondary): Docsity ASE B6 exam-prep archive. Describes the “inside out” estimating sequence, tram-gauge measurement, and Prior Unrelated Damage detection methods.
- Inspection Guidelines — Vehicle Condition (industry): CCC Intelligent Solutions. Total-loss vehicle condition inspection guidelines defining the four condition tiers and tread-depth grading math.
- Kink vs. Bend (industry standard): I-CAR Repairability Technical Support Portal. Defines the historical and current kink-vs-bend structural repair rule and the 600 MPa no-straighten threshold.
- Repair or Replace? — Material Tensile Strength Key to Repairability (industry standard): I-CAR Repairability Technical Support Portal. Defines AHSS/UHSS tensile-strength thresholds in megapascals.
- Estimating the Aluminum Repair (industry): ABRN, via PNL Estimology. Explains why deformed aluminum structural components cannot be straightened and must be replaced.
- When Is ADAS Calibration Required? A Guide for Collision Shops (industry): asTech. Describes static and dynamic ADAS calibration procedures and why minor collisions require them.
- Cost of Advanced Driver Assistance Systems (ADAS) Repairs (Official): AAA Foundation for Traffic Safety / AAA Newsroom. Underlying repair-cost and cycle-time data for the ADAS cost table above.
- Fatalities, Injuries, and Crashes Prevented by Vehicle Safety Technologies and Associated FMVSS, 1968 to 2019 (Official): National Highway Traffic Safety Administration. Federal crash-prevention data cited for the ADAS fatality-reduction figure.
- Repair Documentation and Photo Evidence in Collision Claims (secondary): National Collision Authority. Describes the eight-angle photo-documentation standard and diagnostic scan requirements.
- Car Damage Assessment for Insurance AI Guide (secondary): DataVLab. Technical explainer of the AI-assisted damage-detection and estimate-triaging workflow.
- OEM vs. Aftermarket Parts in Collision Repair (secondary): Em-Fix Collision. Consumer guide on OEM, LKQ, and aftermarket parts categories and CAPA/IIHS crash-test findings.
- CAPA Certified Parts Explained (industry): T1A Auto. Describes the CAPA certification testing process and the yellow-and-blue authentication seal.
- Administrative Complaint — In re CCC Holdings/Mitchell International (Official): Federal Trade Commission. Official 2008 complaint blocking the proposed CCC/Mitchell merger.
- Costello v. Mountain Laurel Assurance Company (2023) (Official): FindLaw Caselaw / U.S. District Court, E.D. Tennessee. Federal case documenting the Projected Sold Adjustment litigation theory.
- Drummond v. Progressive Specialty Insurance Co., No. 24-1267 (3d Cir. 2025) (Official): U.S. Court of Appeals for the Third Circuit, via Justia Law. Official appellate ruling on Projected Sold Adjustments and class certification.
- Property & Casualty Insurance Class Action Update 2024 Q2 (secondary): BakerHostetler. Law-firm summary of labor-depreciation rulings including Scott v. Safeco and Shumway v. Allstate.
- USPAP Compliant vs Non-Compliant Appraisals: Legal and Insurance Implications (secondary): Legal Reader. Explains USPAP standards, The Appraisal Foundation, and Congressional authorization.
- Appraisal Clause in Your Car Insurance Policy (secondary): Irvin Legal. Consumer guide describing the Appraisal Clause and its first-party-claim limitation.
- Auto Claims FAQs (Official): Maine Department of Professional and Financial Regulation, Bureau of Insurance. State regulator explainer of the two-appraiser process.
- What Happens When a Customer Invokes the Right to Appraisal Clause (secondary): Autobody News. Trade-publication explainer of the Umpire selection and binding-decision rule.