Commonwealth Automobile Reinsurers

Rule Amendments Approved during Calendar Year 2012


December 17, 2012

Rule 29

Voluntary credit factors have been established for policies effective April 1, 2013 and subsequent based upon the criteria codified in Rule 29.E.2. (Rule 29.E.)
Refer to Bulletins 971 and 973.

October 23, 2012

Rule 37

Rule 37 has been amended to modify commission payments to Assigned Risk Producers consistent with the conclusions reached in the examination of producer compensation programs initiated by the Division of Insurance in October 2011 and contained in a report dated May 7, 2012. By incorporating the commission schedule in the Rule, transparency will be provided and will assure consistent compensation of Assigned Risk Producers among all Assigned Risk Companies.
Refer to Bulletins 969 and 970.

July 3, 2012

Rules 28, 30, 31

Rules 28, 30 and 31 have been amended to reflect the requirement for an ARC to provide ARPs with access to its voluntary rates at the time a MAIP assignment is processed.  This requirement will provide ARPs with the ability to obtain a voluntary quote from the ARC for comparison to the MAIP premium, for the purpose of determining the down payment.  Additionally, minor modifications have been made to delete obsolete language and clarify and renumber section references.
Refer to Bulletins 962, 963, 964 and 966.

May 17, 2012

Rule 29

For those risks that an ARC intends to non-renew at the expiration of the three-year assignment period, Rule 29.D.2. has been amended to waive the pre-inspection requirement if the risk is unable to obtain replacement coverage at the end of the three-year period and is assigned to another ARC, provided that the vehicles(s) to be insured under the new policy are the same vehicle(s) that were insured under the previous policy.
Refer to Bulletins 962 and 965.

February 22, 2012

Rule 29

Rule 21.D. has been amended relative to the phase out of the prohibition on the non-renewal of clean-in-three risks, with an implementation date for policies effective June 1, 2012 and later.  Rule 29.E.2. has been amended to identify policy effective year 2012 and subsequent voluntary credit factors as determined using an algorithm as outlined in the Decision issued by the Division of Insurance on December 19, 2011, eligibility criteria and a credit value scale based on residual market shares.
Refer to Bulletins 953, 955 and 958.