Governing Committee Meeting - June 14, 2021

President’s Report

CAR’s President advised that Advisory Committee meetings will continue to be held remotely via Zoom through September 1, 2021. However, absent legislative action addressing remote participation aspects of the Open Meeting Law, the Special Governing Committee meeting scheduled for Thursday, August 5, 2021 at 10:30 a.m. will be held in person at the AIB Conference Center on the 7th floor of 101 Arch Street, Boston, MA.

CAR’s President advised that the commission rate to be paid for all classes of ceded commercial business, including taxi, limousine, and car service classes will be 8.34% beginning with policies effective January 1, 2022 and later, coincident with the merging of the two commercial automobile programs and the new Servicing Carrier appointment terms.
Refer to Commercial Lines Notice No. 147 for further information.

Actuarial Committee

The Governing Committee approved the recommendation of the Actuarial Committee to make no change to the current credit factors for policies effective April 1, 2022 and subsequent. Refer to Bulletin No. 1122 for further information.

The Governing Committee approved the recommendation of the Actuarial Committee to calculate policy year 2020 private passenger administrative expense participation ratios gross of Covid-related premium credits, expenses, or refunds given during 2020.

The Governing Committee also approved the recommendation of the Actuarial Committee to calculate policy year 2020 commercial administrative expense and underwriting results participation ratios net of Covid-relating premium credits, expenses, or refunds given during 2020.

Commercial Automobile Committee

The Governing Committee approved amendments to Chapters I, II, III, VI and IX of the Manual of Administrative Procedures to reflect the combination of the commercial automobile programs. A bulletin will be distributed to reflect this change.

The Governing Committee also affirmed the Commercial Automobile Committee’s determination that a market need does not exist for appointment of new non-voluntary contracted ERPs at this time.

Compliance and Operations Committee

The Governing Committee approved amendments to Chapter VII of the Manual of Administrative Procedures to amend references to the Annual Statement ensuring consistency with NAIC terminology and to Chapters IV and V to address impacts to cession reporting and cession/no premium penalties relating to the combined commercial programs. A bulletin will be distributed to reflect these changes.


 
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