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Assigned Risk Producer Procedures Manual
The Assigned Risk Producer Procedures Manual was recently added to CAR's website. The manual contains information on a variety of MAIP-related topics including information relative to ARP certification and eligibility requirements, general ARP responsibilities including the submission and verification of application data for MAIP assignment and the procedure for assigning a private passenger motor vehicle insurance policy to an Assigned Risk Company. Other topics addressed are MAIP stamp issues, the reporting of producer non-compliance violations and company performance standards complaints, and the procedure for responding to reported violations. The Assigned Risk Producer Procedures Manual is accessible from the MAIP Manuals page of CAR's website.
Motorcycle Rating Procedure Modification
The rating methodology for motorcycle physical damage coverage has been modified for policies effective June 1, 2010 and subsequent. The use of motorcycle value in the rating procedure has been replaced with cost new value and includes the application of an age rate factor. Details for applying these procedural changes are outlined in Rule 44 of CAR's Massachusetts Private Passenger Automobile Insurance Manual and in the Motorcycle Rates section of the 2010 Residual Market MAIP Rate pages.
To assure that an applicant's motorcycle premium and associated down payment is calculated as accurately as possible, the MAIP Policy Application will be updated to prompt the Assigned Risk Producer to enter a motorcycle cost new value for policies effective June 1, 2010 and subsequent.
Email Reminder Application - Current Copy of Agency License
It is required that a current copy of each producer's license be on file with CAR. Assigned Risk Producers must be sure to forward a copy of their license upon renewal. Failure to provide CAR with a current and valid agency license will result in the suspension of access to the MAIP Policy Application and could result in the possible decertification of the Assigned Risk Producer.
To assist producers in this process, CAR has developed an email reminder application that will prompt producers to forward a copy of their license upon renewal. An initial reminder email will be sent at the beginning of the month in which CAR's records indicate the license is due to renew. A subsequent reminder email will be sent at the beginning of the next month to those agencies from whom an updated copy of the agency license has not yet been received.
It is important that CAR has a current and valid email address on file for the agency principal or designated agency representative for receipt of the license renewal reminders.
April 1, 2010 Rate Filing Changes - New Discounts
Effective April 1, 2010, MAIP insureds may qualify for two new discounts. It is the responsibility of the assigned company to determine the rated operator's eligibility or continued eligibility for these discounts. Upon verification of eligibility, the company will reduce the applicant's MAIP premium for Parts 1, 2, 4 and 5 as specified in Rule 19 of CAR's Massachusetts Private Passenger Automobile Manual. Rule 19.E. describes the eligibility requirements and the assigned company's required verification process for the Continuous Coverage discount and Rule 19.F. describes the eligibility requirements and the assigned company's required verification process for the Low Frequency discount.Continuous Coverage Discount
The Continuous Coverage Discount will apply to each rated operator that has been insured under an automobile insurance policy without lapse in coverage for the 12 months preceding the effective date of the policy. A rated operator is considered continuously insured if the operator was the named, listed or rated insured on an auto policy for the 12 months preceding the effective date of the policy. A copy of the prior coverage selections page listing the operators to be considered for this discount must be included with the new business application and submitted to the assigned company.Low Frequency Discount
The Low Frequency Discount will apply to each rated operator that has four or less merit rating points and where a claim payment under any or all of Parts 1, 2, 4 and 5 has not been made to or on behalf of the rated operator in connection with more than one accident for the three years preceding the effective date of the policy.
To verify an operator's eligibility for the Low Frequency Discount, each Assigned Risk Company has elected to use the "short form" verification process described in Rule 19.F.2. Since every ARC has agreed to verify eligibility for this discount based solely upon the information used to compute the rated operator's merit rating status and by the claim payments the company makes under the provisions of the assigned policy, the MAIP Policy Application has been modified to apply the discount in situations where the rated operator has four or less merit rating points. Premium for Parts 1, 2, 4 and 5 will be reduced and the down payment will be calculated based upon these amounts.
Rules of Operation Updates - Premium Deposit Requirements
On February 19, 2010, modifications to Rule 28 of CAR's Rules of Operation were deemed approved by the Division of Insurance. The approved modifications impact premium deposit requirements in the case where the applicant has been issued a notice of cancellation for non-payment of premium within the preceding 24 months which resulted in the cancellation of that policy.
When this condition occurs, Assigned Risk Producers must assure that for a new business policy the applicant provides a premium deposit equal to 80% of the calculated MAIP premium, or if known, 100% of the assigned company's voluntary premium. For a renewal policy, the assigned company may require the applicant to provide more than a 20% premium deposit. Check with the ARC to determine what its renewal payment requirements are for policyholders that have been cancelled for non-payment in the preceding twenty-four months.
MAIP Application Processing - Resubmission of Application for Same Insured
Based upon applicant, vehicle and coverage information input to the MAIP Policy Application by an Assigned Risk Producer, MAIP policy premium is calculated and the required down payment amount is displayed. The Assigned Risk Producer must assure that the total premium and down payment amounts calculated are communicated to the applicant prior to the policy being assigned. An application should NOT be resubmitted through the MAIP Policy Application after being initially assigned in order to alter the total premium or down payment amounts. Changing coverage and limits to alter or lower premium and down payment amounts should be discussed with the applicant and agreed upon prior to completing the application and clicking the assign button of the Policy Application.
Once assignment has been made, any policy or coverage changes should be handled directly with the assigned company, either by processing an endorsement or amending the new business application. All changes must be clearly communicated to the assigned company. Multiple assignments for the same insured impact Assigned Risk Company quota share and alter the assignment process in the short term. Note that resubmission of an application for the same insured will NOT change the company assignment.
Security Administrators are requested to review their listing of User IDs to ensure accuracy and to identify and delete user-ids that are no long needed.
To do so:
- Log into the MAIP section of CAR's website: https://www.commauto.com/maip/
- Click on Security Administration
- Click on Manage Users
- A listing of all users will display. The listing will show the "last used" date and the activity status.
- To delete a user, click on the user name
- The Manage Users - Edit screen will appear
- Change the status by clicking on the drop down box and selecting "Deleted"
- Click Submit
1. Why has the non-renewal question regarding business that qualified for special handling under Rule 21.C.1. of CARís Rules of Operation been removed from the MAIP Policy Application?
The transition procedure that provided special handling for applicants meeting the established eligibility criteria specified in Rule 21.C.1. expired effective April 1, 2010 and the non-renewal question was removed from the MAIP Policy Application.
2. Is a motorcycle applicant eligible for the MAIP even if he only holds an active motorcycle permit and not a driver's license?
Yes. Rule 44 of CAR's Massachusetts Private Passenger Automobile Insurance Manual indicates that the experienced operator class may only be applied if the operator of the motorcycle has been licensed to operate a motorcycle for at least six years, however, the inexperienced operator class may be applied if the operator of the motorcycle has been licensed to operate a motorcycle for less than six years, or holds a motorcycle permit.
3. Are scooters and restricted motor bikes (i.e. maximum speed is less than 35 mph) eligible for placement through the MAIP?
Yes. If the vehicle is required to be registered with the Massachusetts Registry of Motor Vehicles, it is eligible for placement through the MAIP. Refer to the definitions found in Rule 44 of CAR's Massachusetts Private Passenger Automobile Insurance Manual.
4. Can a motorcycle and a private passenger automobile be written on the same MAIP policy?
Yes. A motorcycle and a private passenger automobile may be written on the same policy. A separate policy is not needed. A motorcycle may also be endorsed onto a MAIP assigned policy.
1. Since most correspondence between CAR and producers is email based, is it important that producers assure that current and accurate email address information is on file at CAR.
2. Producers were previously requested to review, sign and return a copy of the new Security Administration Form. If you have not yet provided this form to CAR, please do so as soon as possible.
Please feel free to provide feedback or suggest future MAIP Messenger topics by contacting Marian Adgate at firstname.lastname@example.org.