In This Issue - Winter 2009Residual Market News
Reminder For All ARPs >> ARP Directory
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Residual Market News
Effective April 1, 2009 eligibility for placement in the MAIP will simply be the inability to obtain coverage in the voluntary market. An insured will only need one denial from a voluntary private passenger company to be eligible for MAIP. The denial does not have to be in writing unless requested by the applicant. If the applicant requests written confirmation explaining the reasons for coverage denial, the voluntary company is required to provide it.
Assigned Risk Producers (ARPs) can look forward to several enhancements to the MAIP Policy Application. The first new feature will use a vehicle VIN to look-up and prefill several vehicle fields. This will be followed by a look-up of specific driver fields based on driver's license number. Spring of 2009 will bring an enhancement that provides rating of MAIP policies. This new feature will make it unnecessary to rate policies prior to using the MAIP Policy Application. More in Going Online
Please be advised that agency address changes reported to CAR are reflected daily in the Assigned Risk Producer Directory available to all Assigned Risk Carriers (ARCs). Updating this directory, however, may not guarantee that each ARC recognizes a change in agency address. It is ultimately the responsibility of the Assigned Risk Producer to assure that the ARC (with whom a MAIP assignment has been made) has an accurate and up-to-date agency address. CAR is investigating alternatives to ensure that all ARCs respond to changes in agency addresses as they are updated in the Directory.
Viewing and Printing Assigned Applications
Reminder! - The MAIP Policy Application does not allow viewing and printing of previously assigned applications. Use the Assignments Application for this purpose. Use the following procedure:
- After logging-on, click Assignments
- Select an Office Location (if applicable), Agent, Assignment Start Date, and Assignment End Date
- Click Retrieve Data
- Once the applications are retrieved, highlight an application, and select MA Application from the Left Navigation
During the past few months, ARPs have seen the MAIP Policy Application updated to include a Post-Assignment Checklist of the tasks necessary to complete the application process. This includes the ARC address, website address, as well as indication of whether a supplementary application is required.
In February 2009, the MAIP Policy Application will be further enhanced with features to streamline data entry by pre-filling several fields on the Vehicle Screen. Implementation of these improvements will have little impact on the overall workflow of the MAIP Policy Application.
The Vehicle Page will now include an Application Pre-fill Screen and a Look-Up feature on the Vehicle Page.
Application Pre-fill Screen.
Producers will immediately notice this new screen when they begin a new MAIP application. It will precede the Applicant Screen that they are accustomed to seeing first when starting an application. The Application Pre-fill Screen will require entry of applicant name(s) and vehicle VIN(s). Once this information is provided, and a producer continues to the Applicant Screen, a look-up of vehicle information will be initiated. This process will pre-fill the Vehicle Screen with the year, make, model, symbol, high theft, and passive restraint fields for most vehicle types.
If a vehicle VIN(s) is not available at the Application Pre-fill Screen, or if an invalid VIN is entered, producers will be able to enter or correct VINs within the Vehicle Screen.
The Vehicle Screen will include a Look-Up feature. Producers will use this feature to initiate a look-up of vehicle data when a new vehicle is added or to correct an invalid VIN.
In the spring of 2009, CAR will introduce rating as a component of the MAIP Policy Application. Rather than compute premium outside of the MAIP Policy Application, ARPs will be able to use the MAIP Policy Application for all phases policy assignment - from rating (to determine MAIP down payment) all the way through assignment.
Please feel free to provide feedback or suggest future topics by contacting Kathryn Thibideau at email@example.com.
Will MAIP policies be automatically renewed by the Assigned Risk Company?
Yes, unless the risk opts to obtain coverage in the voluntary market. Rule 29 of the CAR Rules of Operation states that, "an eligible risk shall be assigned to a designated ARC for a period of three consecutive years. The ARC may offer to continue the eligible risks' assignment beyond the three consecutive years. However, if the risk is unable to obtain insurance in the voluntary market at the end of the three consecutive year period, or is unable to obtain an extension from the ARC, the risk may reapply for coverage through the MAIP."
Can an Assigned Risk Company non-renew a clean-in-three risk?
Companies are obligated to renew all business determined to be "clean-in-three" until March 31, 2011. Companies are not obligated to accept new clean-in-three business.
The only conditions in which a company may non-renew a clean-in-three risk are:
- the risk declines to renew the policy written by that company or
- another company writes the clean in three risk on a voluntary basis.
What are the MAIP Billing Plans?
For policies with effective dates of April 1, 2008 and beyond, a new business deposit premium of 25% of the total policy premium (as calculated based on MAIP rates) is required. For renewals, a deposit of 20% of the total premium is required. A 100% down payment is required for risks that have been cancelled for non-payment of premium within the previous 12 months.
Once the policy and premium deposit are submitted, the assigned company calculates the policy premium based on their voluntary rates and compares this calculation to the MAIP calculated premium. The lower of these two calculations is then applied to the policy and the insured pays the remainder of the premium balance over nine equal monthly installments. For those risks required to pay 100% of premium, an insured may pursue a premium finance option.
Can I provide a Courtesy Stamp?
MAIP stamps may not be used as a courtesy to certify registration forms. Courtesy stamps should only be done by a producer representing the company insuring the consumer's vehicle.
Can a company refuse to provide Physical Damage Coverage?
Rule 26 and 27 of the MAIP Rules of Operation lists instances where the applicant may be denied physical damage insurance. Rule 26 notes that physical damage coverage will not be afforded if the applicant fails to make the vehicle(s) available for inspection. Rule 27 details instances where prior claim, accident, or violation activity permits a company to either refuse to issue collision, fire, theft, or comprehensive coverage or charge an extra risk rate. Assigned Risk Producers should advise any applicant who meets the criteria outlined in Rules 26 or 27, and who is seeking physical damage coverage, that such coverage may be denied by the assigned company.
Helpful reminders for Security Administrators as we gear up for April
The Manage Users Function within the Security Administrator's Menu should be used to:
- Add New Users Every person at an agency placing business in the MAIP needs their own User ID - sharing of User IDs is strictly prohibited and could result in the loss of agency certification.
- Reset an Inactive User If a user has made themselves inactive, the Security Administrator can reset the "inactive" status to "active" through the Manage Users Function. Access the Detail Users Page, click on the username, and reset the status.
- Delete Users If someone has left the agency, their active status should be changed to "deleted" so that they will no longer have access to the MAIP through your agency. Access the Detail Users Page, click on the user's name, and reset the status.
- Add Office Locations to a User Profile If an agency has multiple locations and people will be working out of more than one office, those locations need to be added to their security profile. Access the Detail Users Page, click on the user's name, and add the location.
Security Administrators cannot change a user's password. If someone has forgotten their password, they should click on the Forgot Password Link found below the Log-on Box and follow the instructions.
If an agent's name has changed and a new User ID has been created, please contact the Data Operations Department so that we can update that person's record for the tutorial and fraud training requirements. Similarly, please contact us if a new employee has come from another agency and has already had access to the MAIP system.
If an agency wishes to add an additional Security Administrator (due to multiple locations) or change its current Security Administrator, a new Access Agreement must be submitted to CAR. Security Administrators are responsible for fulfilling the Fraud Training requirement.
In order for CAR to provide an agency's tax information to companies through our automated feed, the Security Administrator must enter that information into the system. This can be done online through the Tax Id Function found in the Security Administrator's Menu. Note that some companies may still request agencies to complete other forms.
Helpful reminders for new users
The first time you sign on, the system will prompt you to take an online tutorial (it takes about 15 minutes). Please make sure the volume on your computer is turned up so that you can hear the voice on the recording.
New users are required to fulfill the Fraud Training requirement within 6 months. If you do not complete this course or fail to submit your documentation to CAR, the system will deny you access to the MAIP Policy Application.
Two reminders for all users
Remember that passwords expire every 60 days.
The user name, password, and security question answers are all case sensitive. If you have trouble remembering whether you may or may not have capitalized a letter, you can eliminate some frustration by always using lower case letters.