In This Issue - Spring 2011Residual Market News
Performance Standards Compliance
Commonwealth Automobile Reinsurers
225 Franklin Street
Boston, MA 02110
617-338-5422 - MAIP Security
MAIP Application Hours
7:00am - 7:00pm
Monday - Saturday
MAIP Help Desk Hours
8:30am to 4:30pm
Monday - Friday
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.
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 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:
- Log into the MAIP section of CAR's website: www.commauto.com
- 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.
- 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.
Compliance and Coverage
1. I received an email notification regarding a violation filed against my agency. What do I need to do?
An ARP should research the filed allegation(s) and enter a response using the on-line ARP Violations link which is located on the MAIP Producer page of CAR's website. An ARP has 20 calendar days from the receipt of a violation notice to respond. Upon receipt, CAR will validate the ARP's response and determine if further action is required. If a violation remains unanswered at the expiration of the 20-day response period, the violation will be deemed valid and punitive action may result against the ARP.
2. Under MAIP, is there a specific time frame under which an ARC must issue a policy and/or process endorsements to the policy?
To be in compliance with the ARC Performance Standards, an ARC has 15 calendar days from receipt of the assignment or endorsement request to issue the original policy or process a subsequent endorsement to the policy. Refer to Bulletin No. 930. If an ARC does not issue a policy or an endorsement within the 15 calendar days, an ARP should file a complaint against the ARC using the ARC Complaints link located on the main MAIP Producer page of CARs website.
3. We have a client who has had 2 DUIs in the last 2 years and cannot get physical damage coverage in the standard market. Can she get the coverage on a MAIP policy?
You may place the assignment through the MAIP and request physical damage coverage. The ARC has the option to write the coverage and charge an extra risk rate; however, it is also within the ARC's right to refuse to issue the coverage. Section 7.e. of Rule 27 - Coverages of CAR's Rules of Operation identifies the circumstance under which an Assigned Risk Company must charge the extra risk rate, or, in the alternative, refuse to issue collision, fire, theft, or comprehensive coverage. In this particular situation, the risk was convicted of driving while under the influence of alcohol or drugs two times within the most recent three year period. Therefore it is possible that the company will refuse to write physical damage coverage.
Seasonal IssuesAt this time of year, MAIP support staff receives many questions relative to the following topics:
4. 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 Motorcycles, Motorscooters, Mopeds and Similar Motor Vehicles 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.
5. 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.
6. My motorcycle just has minimum coverage and limits. Why is the premium so high?
The most common reason for a high motorcycle premium value being calculated by the MAIP Policy Application is due to the selection of an erroneous operator rate class. When rating a motorcycle, be sure to select the applicable motorcycle operator class from the Rate Class drop-down box on the Vehicle Page.
7. 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 Motorcycles, Motorscooters, Mopeds and Similar Motor Vehicles of CAR's Massachusetts Private Passenger Automobile Insurance Manual.
Does CAR have a Current Copy of your Agency's Producer License?
It is required that a current copy of each producer's license be on file with CAR. Assigned Risk Producers must forward a copy of their license to CAR upon renewal since 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.
CAR's automated email reminder application prompts producers to forward a copy of their license upon renewal with an initial reminder email sent at the beginning of the month in which CAR's records indicate the license is due to renew and a subsequent reminder e-mail 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.
Are your Agency's Email Addresses Up-to-Date?
Correspondence between CAR and producers is email based, therefore is it important that producers assure that current and accurate email address information is on file at CAR.
To verify the email addresses that CAR currently has on file for your agency personnel, log into the MAIP section of CAR's website and clicking on the Producer Profile link.
Please feel free to provide feedback or suggest future MAIP Messenger topics by contacting Marian Adgate at firstname.lastname@example.org.