Residual Market Services is responsible for ensuring that premium charged on ceded policies by the Limited and Taxi/Limo Servicing Carriers meet the requirements set forth in CAR’s Commercial Automobile Manual. This process reviews the applicable data elements used by the insurer when developing the premium charges for ceded policies only. The results of this process are included in the following reports. If you have any questions regarding this process or any of the reports listed they should be addressed to the Residual Market Services Department.
Error Summary Report This report contains cumulative rate edit results by accounting month for each of the years that are edited. The number of eligible records, number of rate error records and the percent of records in error are displayed.
Over Tolerance Report This report is only produced for those companies whose rate error percentage exceeds the established tolerance of 2%. Information contained in the report includes the accounting month of shipments edited, the correction due date, eligible and error record counts, and the potential penalty to be assessed if the over tolerance condition exists beyond the correction deadline.
Penalty Report This option shows the cumulative penalty assessments per quarter in addition to the associated penalty letter. The Penalty letter is addressed to the contact person that CAR has on file for the Rate Edit Program.
Error Details Report This option allows a company to view, print, or download rate edit error records in a 151 byte record formatted as statistically reported by the company and including a field to indicate the type of rate error within the record.