CALIFORNIA DEPARTMENT OF INSURANCE / 1

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1 Changes for 2015 Chris Shultz, Deputy Commissioner Community Programs & Policy Initiatives November 7, 2015 VISION: Insurance Protection for all Californians. MISSION: We act to ensure vibrant markets where insurers keep their promises and the health and economic security of individuals, families, and businesses are protected. CALIFORNIA DEPARTMENT OF INSURANCE / 1

2 CLCA: 25 million vehicles 3-4 million uninsured cars CALIFORNIA DEPARTMENT OF INSURANCE / 2

3 Assembly Bill million undocumented immigrants will obtain driver licenses beginning January 1. Potential customers. CALIFORNIA DEPARTMENT OF INSURANCE / 3

4 2014 CLCA Program Eligibility 19 years of age Continually licensed for 3 years Vehicle valued less than $20,000 Good driving record Insure all cars in the household Income eligibility: 1 person $29, people $59,625 Cost $338/year - Los Angeles and Orange $276/year - Bay Area and Sacramento $226/year - Fresno CALIFORNIA DEPARTMENT OF INSURANCE / 4

5 2015 CLCA Program 2015 changes: New 30% surcharge for those without a 3-year driving history (AB 60 + others). Increase commission to $50 (from $35). Increase vehicle value to $25K (from $20K). CALIFORNIA DEPARTMENT OF INSURANCE / 5

6 How to sign up with CAARP/Low Cost Lisa Simone Western Regional Manager AIPSO 150 California St. #200 (800) CALIFORNIA DEPARTMENT OF INSURANCE / 6

7 How To Become A Certified Producer with CAARP/Low Cost Log on to or Scroll down to forms, follow instructions and complete the Producer Certification Application Form For individual producers, complete form and provide a current copy of fire and casualty license For an agency, complete form and provide a current of fire and casualty license An employee producer working on behalf of the agency must also complete the certification application form and attach their individual license You may fax (415) or caarp@aipso.com the completed forms CALIFORNIA DEPARTMENT OF INSURANCE / 7

8 CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN (CAARP) CALIFORNIA LOW COST AUTOMOBILE INSURANCE PROGRAM (LCA) REQUIREMENTS FOR PRODUCER CERTIFICATION To be eligible to submit applications to the California Automobile Assigned Risk Plan and/or to the California Low Cost Automobile Insurance Program, you must hold a current Fire & Casualty agent/broker's license or Personal Lines license with the California Department of Insurance. Per the requirements of the California Insurance Code ( ) all certified producers must assist any individual who wishes to purchase a Low Cost Policy. THIS INCLUDES ALL PRODUCERS WHO ONLY WRITE COMMERCIAL BUSINESS. IF A PRODUCER CHOOSES TO BECOME CERTIFIED WITH CAARP, THEY MUST COMPLY WITH If a producer submits their own deposit checks on behalf of the applicant, they must have either their own agency fiduciary trust account or work for an agency that does. This is required per Section 20.A.E. Applicants are allowed to submit their own personal checks or money orders when applying for CAARP or LCA. It does not have to be the producer's check. You must complete and mail, fax or to CAARP a Producer Certification Application and provide a copy of your current F & C or Personal Lines license. You must complete within four months of your certification the four online producer courses available via LunchtimeCE at Four hours of Department of Insurance CE credits will be given after completion. In order to remain certified with CAARP you must: Complete the producer course requirement at least once every four years. Failure to complete the producer course requirement every four years will result in a lapse of your certification and affect your ability to submit applications. Provide CAARP with a copy of your renewal license. Failure to do so in a timely manner will result in a lapse in your certification status and affect your ability to submit applications. Renewal licenses can be faxed to (415) or ed to caarp@aipso.com. You must have access to the current CAARP Manual, which includes the rules and rates of both CAARP and the Low Cost Program. The online manual is available free of charge to aipso.com registered users after logging into and accessing the Plan Sites link. Only certified producers may submit applications to CAARP or the Low Cost Program. Only certified producers will have access to the Electronic Effective Date Procedure (EASi). Only certified producers will receive commission and are allowed to order supplies, such as applications and manuals. (For additional information regarding Producer Certification, refer to Sections 19 and 20 of the CAARP Manual.) There is no fee to become certified with CAARP. Contact CAARP at (800) or caarp@aipso.com for more information on how to become certified. All applications and other forms are available in electronic format to aipso.com registered users. They may be printed after logging into www. aipso.com and accessing the Plan Sites link. Scroll down to FORMS. CALIFORNIA DEPARTMENT OF INSURANCE / 8

9 Sample of Producer Certification Application CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN PRODUCER CERTIFICATION APPLICATION MAIL WITH COPY OF LICENSE TO: CAARP PO Box 6530 Providence, RI OR: FAX OR WITH COPY OF LICENSE FAX: (415) FOR PLAN USE ONLY RECEIVED PROCESSED BY AND DATE CERTIFICATION NUMBER CASUALTY INSURANCE AGENT/BROKER LICENSE NUMBER EXPIRATION DATE TAX ID OR SOCIAL SECURITY # LAST NAME OR AGENCY NAME (AS IT APPEARS ON LICENSE) FIRST NAME MI DBA NAME (AS IT APPEARS ON LICENSE) ADDRESS BUSINESS STREET ADDRESS (REQUIRED) CITY STATE ZIP CODE BUSINESS MAILING ADDRESS (INDICATE IF SAME AS ABOVE) CITY STATE ZIP CODE TELEPHONE NUMBER (INCLUDING AREA CODE) FAX NUMBER (INCLUDING AREA CODE) IF AN INDIVIDUAL, NAME OF AGENCY/BROKERAGE ASSOCIATED WITH* AGENCY LICENSE NUMBER DO YOU CONDUCT BUSINESS AT ANY OTHER LOCATION BESIDES THE ONE ABOVE? NO YES IF YES, PLEASE INCLUDE A LIST INDICATING EACH LOCATION COMPLETE WITH ADDRESS, TELEPHONE/FAX NUMBERS. DO YOU OR YOUR AGENCY HAVE AN INSURANCE FIDUCIARY TRUST ACCOUNT AS REQUIRED BY CA INS CODE 1734? NO YES *NOTE: If Your Agency is Not Certified, Please Complete And Include An Application For Agency Certification. FAILURE TO INCLUDE A COPY OF YOUR LICENSE WILL RESULT IN THE DELAY OF YOUR CERTIFICATION. IF ADDITIONAL COPIES OF THIS APPLICATION FORM ARE NEEDED, THIS FORM MAY BE PHOTOCOPIED. APPLICANT DECLARATION The applicant named above, or their representative, declares that in the event of certification as a producer of the California Automobile Assigned Risk Plan (CAARP) business, the applicant will comply with all Plan and Program rules and regulations. The applicant also declares that they possess or have access to a CAARP manual or that they will obtain one in a timely manner in order to facilitate their understanding of the rules and regulations. Additionally, they certify that all information on this application is true and correct and the copy of the license is as issued by the Department of Insurance. Any misrepresentation of material information or alteration of the license will result in their certification being declared invalid. The applicant also declares that they will complete CAARP's required producer course requirements. By signing below the applicant understands that if they fail to complete the producer course requirements, CAARP will no longer consider them a certified producer and that they will not be able to submit CAARP or Low Cost applications, utilize the EASi system nor receive commission on any new business. The applicant also certifies that they will comply with all provisions of the California Insurance code. PRINT NAME DATE SIGNATURE OF APPLICANT OR AUTHORIZED REPRESENTATIVE AIP1249 CA PRODUCER CERTIFICATION APPLICATION (Rev 7/14) - Page 1 IF YOU HAVE ANY QUESTIONS, PLEASE CONTACT CAARP AT (800) OR caarp@aipso.com CALIFORNIA DEPARTMENT OF INSURANCE / 9

10 Introducing EASi EASi - Electronic Application Submission Interface is a simple, cost effective way for producers certified by the CAARP to complete and submit automobile application data electronically to the Plan via the Internet. The resulting electronic version of the completed application can be printed, signed, and mailed to CAARP together with the premium deposit payment and any other supporting documentation and/or forms required by the Plan or Program. EASi 2.0 is available for both the CAARP private passenger and the CA Low Cost Automobile Insurance Program English version application. Only producers certified by the California Automobile Assigned Risk Plan can submit application information to the Plan via EASi. CAARP will issue to individually certified producers and agencies a unique EASi user identification name and password. How does it work? It s EASi! To submit application data to CAARP through EASi 2.0 go to the website, and log-in with your EASi username and password. Choose which application you want to use - CA Private Passenger or CA Low Cost. Electronic Payments (E-Pay) E-PAY provides both producers and applicants with the option to send deposit premiums electronically to CAARP or the Low Cost Program from their authorized account. Insurance companies will then accept deposit premiums electronically for all assignments received trough EASi 2.0. There will be different methods for the new E-PAY process: a sweep of the producer s authorized trust account, payment with an applicant s E-check or payment using credit/debit card. Please note that submitting an electronic payment will be optional for the producer/applicant. The current process of submitting deposits with a paper check, money order or finance draft (CA Private Passenger only) is still accepted. If E-PAY option is chosen through EASi, producers must fax in all required documents to CAARP along with the EASi E-PAY application instead of sending through the regular mail. Using E-PAY wil expedite the entire assignment process. CA Private Passenger has Rating! If you choose the CA Private Passenger application you will be brought to the main screen where you can choose the following options: Create New Quote or Application View Previous Quotes or Applications Whether you are creating a new application or getting a Quick Quote, you will be prompted to enter whether the policy type is Private Passenger or Named Non-Owner. You will then be asked to enter additional information, including: Date of Birth, Gender, Marital Status Custody of child resident in household Relationship to Applicant Vehicle Usage Code, Penalty Points Financial Responsibility Filing Required Zip Code, Mature Driver Improvement Course A zip code to rating band conversion will automatically give you the proper rate for the applicant s rating band. Commercial applications can be submitted from the EASi 1.0 site which can also be accessed from the following website. There is NO rating for commercial. Next you will then be asked to enter the vehicle identification number (VIN) and indicate the coverages needed. A VIN validation feature will give you the year, make and model of the vehicle to be insured. The Quick Quote feature will give you the EASi Rate Summary and allow you to either SAVE it for later or PRINT it for your client. Note, with the Quick Quote feature it will be an ESTIMATED policy premium for your risk as the company of assignment will run its own motor vehicle report for final premium determination. At each step of the way you will be able to Add, Edit or Delete information. When all information has been entered you can SUBMIT the application. EASi will prompt you that if you hit submit, the application cannot be modified. Once submitted all rating information will be pre-filled into the applicable information fields on the application. You can then print the application. Pre-Screen Low Cost Applicants Sample of EASi Brochure CALIFORNIA DEPARTMENT OF INSURANCE / 10

11 Pre-Screen Low Cost Applicants cont. The producer will be directed to another series of screens requesting additional information on the applicant and all residents in the household. Any licensed driver in the household will also be prescreened by running their motor vehicle report (MVR) in real time. EASi will tell you whether they are a good driver per the requirements of the Program. If it states that a driver in the household is not eligible, you will be allowed to continue with the EASi application, however the driver will be automatically excluded from coverage. caarp@aipso.com OR Need your EASi Username & Password? A User Guide California Low Cost Automobile Insurance Program The producer will also be asked to enter the vehicle information. A VIN validation feature will give the year, make and model of the vehicle to be insured. Questions will be asked regarding the applicant s accident & convictions and their insurance history. The producer will then enter the applicant s payment choice and payment amount information. 2014CAARP REV 1/2014 Once all information is entered, the producer can hit SUBMIT. The producer will be asked to check that all necessary information has been provided and that all required documents are ready before final submission. When the producer confirms all information is correct, the application will be officially submitted. All information will be pre-filled into the applicable information fields on the Low Cost application. Application PDF Forms Once you are done entering all information and hit the Submit button, a (PDF) application form, with all the data filled in, will be transmitted back to your computer. This form will include a unique EASi reference number, and the date and time of the transaction. Producer would then: Print the completed application and a temporary identification card valid for 30 days. Make sure that a certified producer and the applicant both sign the printed application. Attach the deposit premium check, plus any required documentation and/or forms, to the application. Mail the application to CAARP within 2 working days. (USPS postmark only) us at: caarp@aipso.com CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN Using EASi WILL NOT guarantee an effective date. Producers will still have to comply with all of the mailing provisions of the Plan in order to receive their proposed EASi effective date. IF USING E-PAY, APPLICATIONS CAN BE FAXED IN TO THE PLAN IN LIEU OF MAILING. For EASi technical questions contact EASi Customer Service by clicking on the link at the bottom of every EASi page: Contact Web Support For all other questions, contact: CALIFORNIA AUTOMOBILE ASSIGNED RISK PLAN California Low Cost Automobile Insurance Program P.O. Box 6530 Providence, RI (800) fax (415) Electronic Application Submission Interface Sample of EASi Brochure CALIFORNIA DEPARTMENT OF INSURANCE / 11

12 Licensing Issues New exam sites in Laguna Hills, Riverside, LA Complete continuing education 60 days before license renewal Agent and broker license suspension/revocations should take less than a year CALIFORNIA DEPARTMENT OF INSURANCE / 12

13 Questions? CHRIS SHULTZ Deputy Commissioner Community Programs & Policy Initiatives California Department of Insurance (916) office / (916) mobile chris.shultz@insurance.ca.gov CALIFORNIA DEPARTMENT OF INSURANCE / 13