MAIP FAQs - Company - revised March, 2023
How often do ARCs receive assignment notification from MAIP?
How do companies receive all the data that is needed to rate a policy?
Are companies required to renew assigned policies each year or may they non-renew for any reason?
How does the ARP obtain ARC Contact information?
Is an ARC required to provide a voluntary rate quote on a MAIP policy if requested by an ARP?
Do Assigned Risk Companies (ARCs) have access to a file showing all agencies that may produce a MAIP policy?
Yes, a list of all active Assigned Risk Producers is available to authorized users on CAR's website.
Will CAR assign a single MAIP Agency Code for ARPs with multiple office locations or will each office have its own code?
CAR will assign a single MAIP Agency Code regardless of the number of office locations or an agency's organizational structure. Multiple office locations
for the agency may be identified by a suffix number to the main office code (example: MAIP agency ID = 01234 (01234-00 for the main office, 01234-01 for
the second office location, etc.) Please note that the MAIP Agency Code is distinct from company assigned producer code(s).
How often do ARCs receive assignment notification from MAIP?
Completed and processed applications are transmitted to the assigned ARC either in real-time transfer using a web services application or in batch mode on
a daily basis, depending upon the preference of the ARC.
How do companies receive all the data that is needed to rate a policy?
Information collected through the MAIP Policy Application should be sufficient for almost all situations for the assigned ARC to rate the business. However,
supplemental applications required by an ARC can be found in the check list function on the MAIP website. The Assigned Risk Producer (ARP) is responsible
for providing the ARC with the original application form and any supplemental or additional information, signed by the applicant and the ARP, and the
required deposit premium within two business days of the assignment.
Are companies required to rate an assigned policy with MAIP rates and company voluntary rates and use the lower of the two?
For a policy assigned through the MAIP, an ARC shall bill the premium that is the lesser of the premium calculated using the MAIP rates on file with the
Commissioner or the ARC's rates applicable to that policy if the ARC or its affiliates had issued the policy in the voluntary market.
If the MAIP rate is lower than a carrier's voluntary rate level, then the carrier must charge the MAIP rate. Do carriers need to
report how much higher their voluntary rate level is vs. the MAIP?
No, the ARC is only responsible for to report on the MPR whether the policy was rated with the MAIP rates or with the company's voluntary rates.
Are companies required to renew assigned policies each year or may they non-renew for any reason?
Rule 29 provides that, "An eligible risk shall be assigned to a designated ARC
for a period of three consecutive years." Unless an assigned risk is subsequently written in the voluntary market or becomes ineligible for coverage,
the ARC is required to renew the assigned policy during the three-year assignment period.
Is it possible for an insured who has been non-renewed by an ARC, to be assigned to the same carrier that non-renewed them?
Yes, assignments will be made to an ARC based on the company’s quota share and the possibility exists that a non-renewing ARC could receive the risk back
through the assignment process.
Are ARCs required to take motorcycles and other miscellaneous private passenger vehicle types from MAIP?
Yes, motorcycles and certain other miscellaneous private passenger type vehicles are eligible for placement in the MAIP. See the CAR/MAIP private passenger
rating manuals for more information.
How are ARP non-compliance issues reported and addressed with regards to MAIP application submissions, policy processing issues
and adherence to the MAIP Rules?
CAR's MAIP Application provides a Non-Compliance section which serves as the repository for reporting all alleged ARP violations and ARC complaints. The
section identifies the reporting and mandatory response requirements and timeframes. The reported violations are then reviewed by CAR staff to determine
whether corrective action is warranted and to be implemented.
Do specific contractual agreements need to be secured between an ARC and an ARP to place business in the MAIP with the assigned company?
No, the MAIP certification process provides the authority for the ARP to place business through the MAIP and does not require an ARC/ARP to have a specific written contract to do so.
In addition to the electronic application sent to the ARC by MAIP, should ARCs expect a paper application from the ARP?
ARPs are required, by Rule, to provide the original signed application, all supplemental application information, and the down payment to the ARC within two business days following the assignment.
When a MAIP policy is issued using a voluntary rate level, how do ARCs specifically identify that this is really a MAIP policy?
The CAR ID Code will identify MAIP business through the statistical reporting process.
How do the producer fraud training requirements addressed in Rule 31.B.14 – Assigned Risk Producer Requirements align with the
fraud training requirements of Rule 32.A.12 – Claims Practices complement?
A single course may satisfy the claims and fraud training requirement for producers and agency employees for both Rules. The course may be conducted by an
ARC or a third party (i.e., MAIA, etc.) Approved courses are listed in the MAIP section of CAR's website by clicking on the Training Tab.
How does the ARP obtain ARC Contact information?
A Company Directory is maintained by CAR staff and the ARC is responsible for providing an active link or email address to provide information relative to policy issuance, billing or claims reporting.
Is an ARC required to provide a voluntary rate quote on a MAIP policy if requested by an ARP?
An ARP may opt to obtain a voluntary rate quote, to be used in the calculation of a down payment for the new business application submission. If a voluntary
quote is obtained by the ARP the new business deposit shall be determined based upon the lower of the MAIP quoted premium or the ARC voluntary quoted
premium. The applicant will be required to provide a deposit of 30% with the deposit calculated using whichever total premium is less. If a voluntary
quote is not obtained, a deposit of 25% of the MAIP quoted premium is required.
An ARC's voluntary rate must be made available to the ARP either through a direct link to the company's rating software, through a third-party comparative
rating vendor, or through a dedicated toll-free telephone rating service. The quote must be provided within the same timeframe as the ARC's voluntary
market quotes and in all cases within 48 hours of receiving from the ARP any additional or supplemental information required to calculate the risk's voluntary premium.