Governing Committee Meeting - June 19, 2019

Commercial Automobile Committee
Verification of Applicant Drivers' Licenses

The Governing Committee approved:
• Modifications to the Eligible Risk definition in Rule 2 – Definitions of CAR's Rules of Operation and Rule 31 – Operator Exclusion Form of the Commercial Automobile Insurance Manual. For additional information, refer to Bulletin No. 1081.
• Standards for the Verification of Applicant Drivers' Licenses. Upon approval of the proposed Rule and Manual amendments, CAR will publish minimum standard procedures required of Servicing Carriers and ERPs to verify applicant drivers' licenses in order to determine whether an applicant is eligible for placement in the commercial automobile residual market.

Determination of Zone Combination

The Governing Committee approved:
• Modifications to Rule 52 in Section III – Trucks, Tractors and Trailers, Rule 72 – Public Automobiles and the Zone Rating Tables of the Commercial Automobile Insurance Manual to clarify the determination of zone combination for zone rated risks. Detailed information will be distributed to the industry as a Commercial Lines Notice upon filing the proposed Rules with the Division of Insurance.

Annual Evaluation of Market Need

The Governing Committee agreed that as there exists ample access to the MA residual market through qualified producers with experience servicing complex commercial risks, a market need does not exist for the appointment of new non-voluntary contracted ERPs at this time. The restriction on appointments will be implemented for any application received subsequent to the Governing Committee's meeting date of June 19, 2019.

Financial Audit Committee
The Governing Committee approved the engagement of AAFCPA for CAR's independent audit services for the fiscal years 2019-2023.

MAIP Steering Committee

The Governing Committee approved:
• Proposed amendments to Rules 21 through 40 of CAR's Rules of Operation, to reflect current practices, eliminate obsolete procedures and date references and provide a general clean-up of Rule language. The more significant modifications made include the elimination of references to the phase-in of and transition to the MAIP and all references to Clean-in-Three Risks. For additional information, refer to Bulletin No. 1082.
• Proposed amendments to Rules 4, 7 and 28 of the Private Passenger Residual Market Rating Manual. Rule 4 has been updated to amend the timeframe for a an insurer to provide the coverage selections page on a renewal policy to the insured to 20 days prior to policy expiration. Rule 7 has been updated to eliminate reference to the issuance of policies with terms of less than one year. Rule 28 has been updated to eliminate reference in the assignment of operators to drivers in active military service and members of the clergy, as these circumstances are addressed within the rule without need for exception coding. The Governing Committee directed staff to file the Rule modifications for Division of Insurance approval with its next private passenger rate filing.

MAIP Policy Application System

In order to improve the accuracy of information in the MAIP Policy Application, the Governing Committee endorsed staff's plan to modify the MAIP Policy Application System to access Registry data now accessible as a result of the Registry's conversion to its ALARS system. It is anticipated that the update will be implemented in early 2020.