Commonwealth Automobile Reinsurers

MAIP FAQs - Producer - As of November 3, 2016

What steps are necessary for a newly licensed producer to obtain ARP certification?

Does the MAIP place any market need restrictions relating to agency office locations?

Are ARPs allowed to expand to additional office locations?

Are there minimum production requirements to retain ARP certification status?

How many MAIP certification stamps will each ARP receive?

Who is required to take the Producer Fraud Training Seminar?

Are employees who process only commercial policies required to take the Producer Fraud Training Seminar?

Are out-of-state producers required to attend the Producer Fraud Training Seminar?

When and where are Producer Fraud Training Seminars held?

Are CEU credits awarded for taking the Producer Fraud Training Seminar?

What are the software requirements for producers to access the MAIP in order to submit an application?

Are ARPs required to forward a photocopy of the license of each listed operator on the MAIP policy?

How should producers advise ARCs of the existence of a deferred operator on a MAIP policy?

Should an ARP indicate that a risk will utilize a premium finance option?

Are ARPs provided with company contact information necessary for the issuance and servicing of assigned risk policies?

How are the ARP and the insured notified of which ARC a policy has been assigned?

May an insured request reassignment to another company if he or she is not satisfied with the company to which he or she is assigned?

At what point in the assignment process is coverage bound?

I have made an assignment through the MAIP but the applicant has decided not to accept the policy. Whom do I notify?

How can changes/endorsement be made to a policy assigned through the MAIP?

Is the deposit amount required for assigned business determined based on the MAIP premium?

If a risk has been cancelled for non-payment within the last 24 months, what down payment amount should the producer collect?

If an applicant owes earned premium to their prior carrier, will the assignment automatically be made to the carrier to which the premium is owed?

Is an ARP required to collect outstanding unpaid premium as part of the premium deposit when placing business through the MAIP?

What happens once the 3 year assignment period is over?

Can MAIP policies be written voluntarily at renewal?

I submitted an application rated with physical damage coverage through the MAIP Policy Application but the ARC to which the policy was assigned issued the policy without the physical damage coverage. Can the ARC do that?

Can a producer use the MAIP stamp to provide a "courtesy stamp" for a risk?

Is a motorcycle applicant eligible for the MAIP even if he only holds an active motorcycle permit and not a driver's license?

Are scooters and restricted motor bikes (i.e. maximum speed is less than 35 mph) eligible for placement through the MAIP?

Can a motorcycle and a private passenger automobile be written on the same MAIP policy?

Is a vehicle that performs snowplowing eligible for MAIP coverage?

What is the Symbol rating system effective for policies April 1, 2011 and subsequent?

Do VRGs replace the current vehicle symbols?

What is the VRG used for?

What if an invalid VIN is entered or a VRG does not exist for the entered VIN?

What steps are necessary for a newly licensed producer to obtain ARP certification?
Rule 31 - Assigned Risk Producer Requirements, details ARP certification requirements Specific instructions on obtaining ARP certification are located in Chapter II of the ARP Procedures Manual with additional information available in the Producer Quickstart found in the MAIP section of CAR's website in the Getting Started Guide or accessed from the Training section.

Does the MAIP place any market need restrictions relating to agency office locations?
There is no market need criteria relating to agency office locations set forth by the MAIP.

Are ARPs allowed to expand to additional office locations?
Yes, the establishment of additional office locations by ARPs is not restricted in the MAIP.

Are there minimum production requirements to retain ARP certification status?
No, amendments to Rule 31 effective May 16, 2008, eliminated production criteria for ARPs.

How many MAIP certification stamps will each ARP receive?
CAR will provide two MAIP stamps for each verified agency office location.

Who is required to take the Producer Fraud Training Seminar?
Rule 31.B.14. requires the producer and all agency employees who process Massachusetts private passenger automobile policies and/or claims must successfully complete the CAR Producer Fraud Training Seminar. The requirement applies to all current producers as well as licensed and unlicensed employees.

Are employees who process only commercial policies required to take the Producer Fraud Training Seminar?
Rule 31.B.14. provides that the ARP and his or her employees will be required to receive training on claims reporting and fraud recognition.

Are out-of-state producers required to attend the Producer Fraud Training Seminar?
Yes, all employees of an out-of-state agency who process Massachusetts private passenger automobile policies/claims are required to take the class. MAIA has arranged with the Independent Insurance Agents of Rhode Island and the New Hampshire Agents Association to conduct the class.

When and where are Producer Fraud Training Seminars held?
Producer Fraud Training is available at different times and in various formats. Please visit the MAIP Training page for a list of vendors and formats available.

Are CEU credits awarded for taking the Producer Fraud Training Seminar?
Yes, most courses have been approved for CEU credit by the Massachusetts Division of Insurance. Specific information on course credits should be obtained from the vendor.

What are the software requirements for producers to access the MAIP in order to submit an application?
To ensure optimum performance, CAR recommends the latest Windows operating system. In addition, Internet Explorer 10+, Firefox, or a compatible modern web browser is required. More Information can be found in the MAIP section of CAR’s website under System Recommendations in the Getting Started Guide.

Are ARPs required to forward a photocopy of the license of each listed operator on the MAIP policy?
No. Rule 31.B.3.b. requires that the ARP must only submit a photocopy of the license of any operator holding an out-of-state or out-of-country driver's license with the new business application. The ARC will validate a Massachusetts driver's license through the Registry of Motor Vehicles.

How should producers advise ARCs of the existence of a deferred operator on a MAIP policy?
The presence of a deferred operator should be noted in the Remarks Section of the MAIP Policy Application. All licensed household operators must be listed on the application.

Should an ARP indicate that a risk will utilize a premium finance option?
Yes, the ARP should check the box on the Applicant page of the MAIP Policy Application and also note the name of the finance company in the Remarks Section.

Are ARPs provided with company contact information necessary for the issuance and servicing of assigned risk policies?
The Company Directory is found on the the first page after the Log-In, and a Company Checklist is also provided once a policy is assigned. The Directory includes company names, addresses, and other specific information necessary for the issuance and servicing of assigned risk policies.

How are the ARP and the insured notified of which ARC a policy has been assigned?
The MAIP will electronically notify the producer of record immediately upon the successful submission of the completed MAIP policy application through the system . The producer will be responsible for notifying the insured.

May an insured request reassignment to another company if he or she is not satisfied with the company to which he or she is assigned?
No, except as provided in Rule 26.B.1.

At what point in the assignment process is coverage bound?
Coverage is not bound until an assignment has been made by the MAIP disclosing the identity of the receiving ARC.

I have made an assignment through the MAIP but the applicant has decided not to accept the policy. Whom do I notify?
If an applicant decides not to take a policy after assignment to an Assigned Risk Company, the producer can utilize the Void Assignment function which allows a producer to void assignments that have been made during the last 2 business days. The Void Assignment link is found on the main landing page of the MAIP Policy Application.

If two business days have surpassed, the producer must notify the Assigned Risk Company directly that the policy has not been taken by the applicant.

How can changes/endorsement be made to a policy assigned through the MAIP?
Once a MAIP policy is assigned to an Assigned Risk Company, any requests for changes/endorsements to that policy should be made directly to the ARC. Please refer to the Company Directory located on the MAIP website for contact information.

Is the deposit amount required for assigned business determined based on the MAIP premium?
Yes, Rule 28.C.1. provides that a deposit of 25% of the quoted premium based on the MAIP rate is required for new business with policy effective dates on and after April 1, 2009. A deposit of 20% is required for a renewal policy.

If a risk has been cancelled for non-payment within the last 24 months, what down payment amount should the producer collect?
If the risk has been cancelled for non-payment of premium within the last 24 months, the producer is required to collect 80% of the calculated MAIP premium or 100% of the Assigned Risk Company's voluntary premium, if known.

If an applicant owes earned premium to their prior carrier, will the assignment automatically be made to the carrier to which the premium is owed?
In cases where earned premium is owed, the assignment will automatically be made to the prior carrier only in cases where the prior policy was an assigned risk policy. Owed premium should always be submitted to the carrier to which the premium is due.

Is an ARP required to collect outstanding unpaid premium as part of the premium deposit when placing business through the MAIP?
An ARP is not required to collect the outstanding owed premium. However, the applicant is required to satisfy any outstanding debt occurring within the previous 12-month period, prior to being eligible for placement in the MAIP. An ARP may choose to assist an applicant in resolving this situation.

What happens once the 3 year assignment period is over?
If an Assigned Risk Company intends to non-renew the policy at the end of its 3-year assignment period, the ARC is required to notify the producer of its decision at least 120 days in advance of the policy’s expiration date. The producer may submit the risk to MAIP for reassignment, as long as the policy is submitted at least 60 days prior to the policy’s expiration date and new policy’s effective date matches the expiration date of the original policy and the driver’s license number on both policies are the same, the MAIP Policy Application will be able to verify that the insured had been assigned for 3 consecutive years to the same ARC and no down payment will be required with the new application.

Can MAIP policies be written voluntarily at renewal?
Yes, if an Assigned Risk Company chooses to offer a voluntary policy to a risk that it has insured through the MAIP, it must mail a notification to the producer of record 90 days prior to the expiration date of the MAIP policy. The insured/producer may elect not to accept the offer by notifying the Assigned Risk Company.

I submitted an application rated with physical damage coverage through the MAIP Policy Application but the ARC to which the policy was assigned issued the policy without the physical damage coverage. Can the ARC do that?
Under certain circumstances, as outlined in Rule 27 – Coverages of CAR's Rules of Operation, and pursuant to G.L. c. 175, § 113H, an ARC may charge an extra-risk rate for physical damage insurance, or, in the alternative, may refuse to issue collision, fire, theft or comprehensive coverage. You must inform an applicant that meets the Rule 27 criteria that although his policy may initially be rated with physical damage coverage, the assigned company will ultimately determine whether to issue to policy with this coverage.

Can a producer use the MAIP stamp to provide a “courtesy stamp” for a risk?
No, the MAIP stamp may not be used in courtesy stamping. If the producer represents the company insuring the vehicle, then the producer may use that company's stamp to certify a registration on behalf of another producer.

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.

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 as a low speed vehicle.

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.

Is a vehicle that performs snowplowing eligible for MAIP coverage?
The vehicle must meet the definition of private passenger in accordance with Rule 27 – Private Passenger Definition of the Massachusetts Private Passenger Residual Market Automobile Insurance Manual. There is nothing in the definition or policy language which would exclude the snowplow. The vehicle should be assigned to Rate Class 30 – Business Use (unless a higher rated inexperienced operator class applies), and the Assigned Risk Company may choose to increase the symbol or use the Customized Equipment endorsement to develop the appropriate premium to include the snowplow. Information concerning the snowplow should be included in the Remarks section of the application.

What is the new Symbol rating system effective for policies April 1, 2011 and subsequent?
The Vehicle Rating Group (VRG) program, assigns vehicles to groups in order to reflect expected cost differences and claims activity arising from the type of vehicle insured.

Do VRGs replace the current vehicle symbols?
Yes, VRGs replace current vehicle symbols and are assigned to vehicles as new model years are introduced. Once assigned, a VRG is not subject to change.

What is the VRG used for?
This methodology is used to rate the collision, limited collision and comprehensive coverage in order to develop the vehicle's physical damage premium. Upon entering a VIN on the Vehicle page, two VRGs will be returned; one for collision and one for comprehensive.

What if an invalid VIN is entered or a VRG does not exist for the entered VIN?
If the MAIP Policy Application system is not able to determine comprehensive or collision VRGs for policy rating purposes you will be prompted to enter the vehicle’s base list price, year and make of the vehicle and the system will assign VRGs and rate the policy based upon the entered information.