Residual Market News

Enhancement to Performance Standards Compliance Application – NEW!

The MAIP performance standards compliance application has been updated to provide both ARCs and ARPs with the ability to attach supporting documentation when filing or responding to an alleged non-compliance issue. Multiple documents may be attached and the attachments are viewable by all parties involved. A system-generated email notification alerts the parties to the existence of attachments.

The MAIP performance standards compliance application may be accessed from the main MAIP Producer page of CAR's website.

VRG Rating Group (VRG) Replaces Symbol

As announced in the Winter 2011 edition of the MAIP Messenger, CAR's Private Passenger Residual Market rate filing for policies effective April 1, 2011 and subsequent that was recently placed on file by the Division of Insurance included the replacement of Symbol rating with the Vehicle Rating Group (VRG) program. Refer to Rule 22 – Vehicle Rating Group (VRG) Program of the Massachusetts Private Passenger Residual Market Automobile Insurance Manual for further information.

For policies effective April 1, 2011 and subsequent, upon entering a VIN on the Vehicle page, two VRGs will be returned; one for collision and one for comprehensive, with codes ranging from 11-50. For the higher priced vehicle models, where the VRG assigned for either collision or comprehensive is 50, the producer will be required to enter the vehicle's base list price in order for the vehicle to be properly rated. The base list price is defined as the MSRP for the vehicle with no additional options included. For model years prior to 1985, the producer will be required to enter the vehicle's appraised value as these model years will be rated on a Stated Amount basis in accordance with Rule 41 – Stated Amount Coverage of the Massachusetts Private Passenger Residual Market Automobile Insurance Manual. For those vehicles not assigned to a VRG, the Policy Application will default to a VRG code of 24.

Going Online

Verify Rate Class and Territory Codes before Submitting Application – Important!

In order to assure that a policy is accurately rated by both the MAIP Policy Application system and the assigned company, please make sure to select the appropriate rate class for the operator rated on the vehicle and the garaging town/territory code from the drop-down boxes on the Vehicle Page of the MAIP Policy Application.

Producer Profile Application

CAR's Producer Profile Application provides agency personnel with MAIP compliance information and a detailed analysis of the producer's book of business, based upon data that companies have statistically reported to CAR. A variety of informational reports are available including those that provide private passenger and commercial loss ratios, exposure by premium town and company/policy effective date and book of business by rate class, limits and merit rating status. This secure application also allows the producer to view contact and licensing information on record at CAR for their agency.

Producers can access the Producer Profile Application by logging onto the MAIP with your MAIP user ID and password and clicking on the Producer Profile link. A validated agency user will only have access to its own agency's information.

Performance Standards Compliance

Filing ARC Performance Standard Non-Compliance Complaints

The Assigned Risk Company Performances Standards and procedures for monitoring ARC compliance with these standards were updated in June, 2010 to include a penalty provision for ARC non-compliance. The standards are organized into two categories, each with a separate penalty provision depending on whether non-compliance has an impact on consumers or addresses the timeliness of an ARC performing its responsibilities. Producers should familiarize themselves with the ARC Performance Standards, as summarized in Bulletin No. 930 , dated June 25, 2010 which is available from the Bulletins tab on CAR's website.

If an ARP believes that an ARC is in violation of the established Performance Standards, a complaint should be filed on-line using the ARC Complaints link which is located on the main MAIP Producer page of CAR's website. CAR will review the complaint and any supporting documentation submitted in order to determine the validity of the reported violation and to determine what course of remedial action may be necessary.

Security

Security Administrators are requested to review their listing of User IDs to ensure accuracy and to identify and delete user-ids that are no longer needed. To do so:

1. Log into the MAIP section of CAR's website: www.commauto.com
2. Click on Security Administration
3. Click on Manage Users
• A listing of all users will display. The listing will show the "Last Used" date and the activity status.
4. 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 "Delete"
• Click Submit

Any User IDs that have not been used since 2009 or those associated with users that are either no longer employed by the agency or no longer deal with MAIP should be deleted.