In This Issue - Spring 2009Residual Market News
Reminder >> Agency Information Updates
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Residual Market News
Assigned Risk Producer Performance Standards
CAR's Governing Committee has approved procedures for the evaluation of an Assigned Risk Producer's alleged non-compliance with the MAIP Rules of Operation. These procedures establish a process for an Assigned Risk Company to report an alleged ARP violation of the Rules, the Assigned Risk Producer to respond, and CAR to evaluate and determine what action, if any should be taken, in response to the violation. CAR's evaluation can result in ARP certification action. Violation thresholds and certification suspension timeframes have been established for exceeding violation tolerances. In addition, decertification conditions have been instituted. Details of the approved program, including tolerances, suspensions, and decertifications can be found in the Additional Information document for the February 25, 2009 meeting of the Governing Committee. This information will also be included in the Assigned Risk Producer Procedures Manual.
Assigned Risk Company Performance Standards
CAR is in the final stages of establishing performance standards for Assigned Risk Companies. The standards, reporting, evaluation, and resolution procedures will be similar to the Assigned Risk Producer performance standards process. The program intends to establish standards for the processing of new business, endorsements, payment of commissions, return premiums, and other performance related matters. Approval of the standards is expected at the Governing Committee's June meeting.
Assigned Risk Producer Procedures Manual
CAR is finalizing a comprehensive procedures manual for Assigned Risk Producers that will include information on a broad spectrum of topics including: general responsibilities of an ARP, MAIP stamp issues, ARP performance standards and compliance procedures, Assigned Risk Company complaint procedures, MAIP eligibility requirements, and the MAIP policy application and assignment process. The finalized Procedures Manual will be accessible through the Manuals Tab from the MAIP Home Page.
Please remember to send in agency licenses upon renewal. In addition, please be sure to notify us of any changes in the agency using the Agency Information Update form. Changes may be a new office location(s), change in office address(es), new employee(s), incorporation of the agency, or an agency sale or merger. Licenses and forms may be faxed to 617-880-7298 or emailed to firstname.lastname@example.org.
On Tuesday April 14, 2009, the MAIP Policy Application was enhanced to include calculation of MAIP premium using current MAIP rates. The premium calculation is based on data input into the application, including merit rating points. This feature eliminates the need to manually enter premium values, and provides an accurate calculation of down payment premium. Once the ARC receives the application, it determines the ultimate policy premium by comparing and applying the lower of the MAIP rate or the ARC's voluntary rate. Details regarding this new feature and all recent updates to the MAIP Policy Application are available by viewing the MAIP Policy Application - Enhancements Tutorial
Help! The system is not filling in premium dollars on the Coverage Screen
If the premium dollars appear blank on the Coverage Screen, return to the Vehicle Screen and be sure you have selected a rating class.
My customer's unique circumstances are not captured by the information provided on the application. How do I communicate this to the ARC?
Use the Remarks Page to communicate this information to the ARC. Remarks are limited to 256 characters, so it is important to be as succinct as possible. If you have remarks that are more extensive, you may want to include a memo with the application detailing the circumstances.
I have Java, but I still cannot view or print the application.
In cases where a blank screen appears when attempting to view an application, try downloading the most recent version of Java (Version 6 Update 13) and then reboot your computer.
Help! I am trying to assign an application and the system keeps telling me the license number must be unique.
This message appears when a driver (and his/her license number) has accidentally been entered twice. This situation can be corrected by deleting the duplicate entry. With the duplicate entry on the screen, click Delete and confirm the deletion.
Please feel free to provide feedback or suggest future topics by contacting Kathryn Thibideau at email@example.com.
What is an SR-22 filing and can a company that receives an assignment through the MAIP issue this filing?
An SR-22 is a document that provides proof that a driver has the minimum required liability insurance coverage for a particular state. It is required by state motor vehicle departments.
A company assignment made through the MAIP is based on a quota share calculation. This calculation does not take into account an Assigned Risk Company's ability to issue an SR-22 in a specific state. Therefore, if an Assigned Risk Company receives a request for an SR-22 in a state where the company is not licensed, or not recognized by the state as having the ability to issue an SR-22, the Assigned Risk Company will not be able to issue the filing.
Currently, all carriers participating as Assigned Risk Companies in the MAIP are able to issue SR-22 filings in the state of New Hampshire due to an agreement between Massachusetts and New Hampshire. For states where the ARC is not authorized to issue the filing, producers should look to the secondary market to find an insurance carrier that specializes in this type of business.
Can motorcycles be placed for assignment through the MAIP?
Motorcycles can be written and placed through the MAIP. The MAIP Rules and Rates for motorcycles can be found in the Manuals Section of CAR's website.
Can a motorcycle and a vehicle be put on the same policy in the MAIP?
A motorcycle and a vehicle may be written on the same policy. A separate policy is not needed. A motorcycle may also be endorsed onto a MAIP assigned policy.
Why is there a difference in the calculated MAIP premium when using the MAIP Policy Application compared to the calculated MAIP premium using our agency's management software system?
Effective 4-1-09, there were changes to the MAIP rates that may not have been incorporated by your agency management system software. For example, the 2009 MAIP rate filing eliminated the passive restraint discount because 95% of all vehicles currently contain automatic seatbelts or airbags. Rather than apply a discount factor, the base rates for each class now incorporate the results of having this type of safety device. In addition, the merit rating factor now applies to Part 5 - Optional Bodily Injury to Others. The MAIP Policy Application uses these changes to reflect the most accurate MAIP premium for the coverage levels selected.
Who do I contact to discuss down payments, pre-inspections, or changes to an application? Once an assignment has been made, where do I send the signed application, premium deposit, copies of driver licenses, or additional required paperwork or endorsements?
Once the assignment is made through the MAIP, all correspondence, endorsements, and policy inquiries should be directed to the carrier who received the assignment. The Post-Assignment Checklist that appears immediately after an assignment provides relevant information concerning the ARC's specific requirements.
What is the definition of a Clean in Three Risk and what determines a risk's Clean in Three status?
A Clean in Three Risk is defined in Rule 22 of CAR Rules of Operation as the named insured and any other person that usually operates the vehicle who:
- during the three years prior to the policy effective date has been licensed for thirty-six successive months.
- insured continuously for the past thirty-six months, with no more than one period of lapsed coverage not exceeding sixty days.
- has not been found to be at fault for an accident that generated an insurance claim, including a PIP claim or a traffic violation, during the three years prior to the policy effective date
- in the previous sixty successive months prior to the effective date of the policy has not had a DUI or a conviction of vehicular felony.
Clean in three provisions apply to renewal business. The insurance company determines the clean in three status prior to the renewal effective date of the policy.
Tax ID Info
In order for CAR to provide an agency's tax ID data to companies through our automated feed, this information must first be entered into the system by the Security Administrator. This can be completed online through the Tax ID Function found on the Security Administrator's Menu. Note that some Assigned Risk Companies may request additional forms.
Security Administrator Change
If the Security Administrator leaves an agency, a new administrator must be assigned. To change an administrator or add an additional Security Administrator (for agencies with multiple locations), a new Producer Security Access Agreement must be submitted to CAR. Please remember that Security Administrators are responsible for fulfilling the Fraud Training requirement.
In order for CAR to provide system update notifications, Security Administrators must keep their most current email address in their security profile. Use the Manage Users Page to update an email address. Once in the Manage Users Page, click on the user's name, access the Detail Users Page, and enter the correct email address. The changed email address must then be confirmed.