Governing Committee Meeting - June 17, 2020

Commercial Automobile Committee
Supplemental Application for Commercial Risks

The Governing Committee approved the following:
• The use of a supplemental application in order to collect general risk information for all commercial risks, as well as additional ownership, usage and garaging information for public transportation and trucking risks.
• Updates to Chapters I and III of the Manual of Administrative Procedures to reflect the requirements for usage of the supplemental application.

CAR will publish an industry Bulletin to announce the availability of the supplemental application forms and required implementation dates.

Annual Evaluation of Market Need for ERP Appointments

In accordance with Rule 14, an applicant for ERP appointment to a Servicing Carrier must meet established market need criteria. In its annual evaluation of market need, the Governing Committee agreed that as there exists ample access to the MA residual market through qualified producers servicing all classes of commercial automobile risks, a market not does not exist for the appointment of new non-voluntary contracted ERPs at this time.

Compliance and Operations Committee
Rule and Manual Amendments

The following amendments were approved:
• In conjunction with the RMV’s replacement of the RMV-1 and RMV-3 forms with the Registration and Title Application, the Governing Committee approved modifications to Rules 13 and 30 of CAR’s Rules of Operation, Rules 4, 55 and 58 of the Private Passenger Automobile Insurance Manual and Rule 4 of the Commercial Automobile Insurance Manual. Updates made to the Manuals add reference to the new form and eliminate references to the obsolete forms. Refer to Bulletin No. 1099 for additional information.

• The Governing Committee approved modifications to Chapter III – Eligibility Requirements of the Assigned Risk Producer Procedures Manual to provide for consistency with statutory changes made to M.G.L. c.90, §10 which allow a driver with a valid foreign license from any country to operate a validly registered motor vehicle in Massachusetts. Refer to Bulletin No. 1102 for additional information.

Joint Actuarial Commercial Lines Committee

The Governing Committee approved the rate need white paper in substance, and submission to the Division of Insurance upon incorporation of final amendments by the Joint Actuarial Commercial Lines Committee.

Actuarial Committee Meeting

The Governing Committee approved the recommendation that no changes be made to Quota Share credits for policies effective April 1, 2021 and subsequent. Refer to Bulletin No. 1100 for additional information.

Commercial Program Oversight Committee

The Governing Committee approved further guidance for Servicing Carriers in the handling of ceded commercial risks as the Commonwealth transitions through the current public health crisis. Refer to Bulletin No. 1101 for additional information.