On June 20, 2024, Commonwealth Car Reinsurers (CAR) launched Bulletin 1167, which successfully resolved the disagreement between Calianos Insurance coverage Company and Norfolk & Dedham that we beforehand talked about on June 11. See Company Checklists’ article, “A Split Decision On Installment Payment Dispute Between The Calianos Agency & N&D.”
The bulletin discusses the problem of Assigned Danger Firms requiring fee for coverage premiums after sending a 3rd cancellation discover. CAR’s Governing Committee Evaluation Panel has decided that this apply goes towards Rule 28.C.2 of CAR’s Guidelines of Operation, which offers with fee plans for assigned threat carriers.
Key highlights from Bulletin 1167:
- The choice helps Calianos Company’s place.
- All Assigned Danger Firms are instructed to cease demanding full fee following a 3rd cancellation discover.
- This ruling additionally applies to any related practices associated to the MAIP installment plan.
- The ruling stands until there are directives from the Commissioner of Insurance coverage.
Whereas this improvement vindicates the Calianos Company’s place, it could not appear to have important implications on billing practices inside the Massachusetts assigned threat auto insurance coverage sector. Assigned threat producers ought to pay attention to this shift in cancellation practices mandated by the the bulletin.
For extra particulars: CAR recommends reaching out to their Residual Market Division or sending an e-mail to maipsupport@commauto.com. A replica of the Bulletin is on the market with this hyperlink: Bulletin 1167.
