Commonwealth Automobile Reinsurers

Governing Committee Meeting - April 11, 2018

Commercial Automobile Committee

The Governing Committee approved the following recommendations:

  • Modifications to Rule 11.C.2. of the Rules of Operation and Chapter III of the Manual of Administrative Procedures to incorporate procedures relative to Servicing Carrier requests for reimbursement of extraordinary expenses. The Committee directed CAR staff to file the proposed modifications to Rule 11 with the Division of Insurance. Refer to Bulletin No. 1049 for further information.

  • In order to maintain an equitable distribution of ceded commercial written premium among Servicing Carriers by both volume and class type, the Committee approved the reassignment of 26 producers effective July 1, 2018 for both new and renewal policies.

  • Adoption of a commercial Focus Audit, the objective of which is to gather information to support the development of underwriting standards to be used by Servicing Carriers to validate the eligibility, classification and rating of a commercial residual market risk and for the subsequent development of long term audit and oversight procedures.

Compliance and Operations Committee

The Governing Committee approved the following recommendations:

  • Adoption of CAR's Business Continuity Plan which identifies the resources and tools required to effect a smooth and timely restoration of CAR's administrative and operational activities upon declaration of a disaster.

  • Modifications to the Private Passenger and Commercial Statistical Plans. The CAR Identification Code table in the Private Passenger Statistical Plan has been modified in conjunction with the Division of Insurance's approval of a Rule 21 amendment confirming the end date of March 31, 2018 for the restriction on the non-renewal of Clean-in-Three risks. Additionally, a clarification has been made to the Rating Identification Code table contained in the Commercial Statistical Plan. Refer to Accounting and Statistical Notice No. 616 for further information.