Commonwealth Automobile Reinsurers

Rule Amendments Approved during Calendar Year 2009


December 18, 2009

Rules 28, 29

Description:  The household procedure portion of Rule 29 was eliminated (Rule 29.F.2.).  The filed amendments to Rule 28.C.1. and Rule 29.E. were disapproved and remanded to CAR for further modification.
Refer to Bulletins 915 and 918.

July 1, 2009

Rule 21

Description:  The June 19, 2009 modification to Rule 21.C. was amended to assure that the condition that the applicant's prior policy was non-renewed is one of the requirements for determining MAIP eligibility during the transition period.
Refer to Bulletins 907 and 909.

June 19, 2009

Rules 21, 26, 29, 30, 31

Description:  Reduced down payment procedures and a waiver of pre-inspection requirements were established for those MAIP applicants whose policies have been non-renewed (Rule 21.C.).  Proposed modifications and the procedure for verifying driver's license information was modified (Rule 31.B.).  References to Rule 21.C. were updated in Rules 26 and 29. The filed amendment to Rule 30.C.1.d. to eliminate the Rule's sunset provision relative to paying commission to the producer of record regardless of whether the producer had a voluntary contract with the company was disapproved.
Refer to Bulletins 903 and 906.

May 15, 2009

Rule 29

Description:  Provisions were added to Rule 29 requiring a Newly Writing Company to report interim summary data for Quota Share determination on a monthly basis until the time that the company is required to report detailed statistical data to CAR (Rule 29.B. and 29.C.).
Refer to Bulletins 899 and 901.

May 1, 2009

Rules 22, 29

Description:  Emergency Rules, as initially promulgated on February 5, 2009, and further amended in the Commissioner's decision dated May 1, 2009, were made permanent.  The definition of Member was amended (Rule 22) and an adjustment to Quota Share was added for a Member that is part of a group that includes another insurance company that qualifies as a Newly Writing Company and that Newly Writing Company has elected to be treated as a Member separate from the existing Member (Rule 29.C.).  The clean-in-three adjustment criterion which required the producer of record to not have obtained a voluntary appointment has been eliminated (Rule 29.B.).
Refer to Bulletins 893 and 900.

March 27, 2009

Rule 31

Description:  Clarified the obligation of an Assigned Risk Producer to return unearned commissions owed to an ARC on a timely basis (Rule 31.B.) and amended the certification ineligibility requirements to indicate that if an ERP's appointment has been terminated for violating CAR Rule 14 obligations (except production criteria requirements), the ERP will be ineligible to reapply for certification as an ARP until the time that the producer is eligible to reapply for appointment as an ERP (Rule 31.D.).
Refer to Bulletins 894 and 896.

February 5, 2009

Rules 22, 29

Description:  The Commissioner promulgated amendments to Rules 22 and 29 as Emergency Rules, effective February 5, 2009.
Refer to Bulletin 893.