NEW YORK AUTOMOBILE INSURANCE PLAN. Producer

Transcription

1 NEW YORK AUTOMOBILE INSURANCE PLAN Producer Procedures Course 1

2 Session Overview General Subjects NYAIP Contact Information NYAIP Producer Certification NYAIP SIU Peer Review NYAIP Assignments, Quotas, Eligibility Ineligible Applicant Program Unbound MVRs Manual and Information Updates Electronic Access Surcharges Discounts 2

3 Session Overview General Subjects Coverages Regulation 79 Compliance Payment Options Effective Dates Supporting Application Documents Cancellations 3

4 Session Overview General Subjects Producer Commissions i & Fees Performance Standards Private Passenger Classifications New Business Application on the EASi platform PASS/EASi Retraction & Flat Cancellation PASS Endorsements Private Pi Passenger and Commercial Pre PASS Assignments 4

5 Session Overview Commercial Information Trucks, Tractors, Trailers Public Transportation Garage Coverage Non owned Coverage Miscellaneous Section Light Commercial Physical Damage 5

6 Session Overview Commercial Information PASS New Business Application i PASS Retraction & Flat Cancellation Other Commercial lforms Special Risk Distribution Procedure 6

7 Session Overview Miscellaneous PASS Options ID Card Inquiry Reprint Rating Examples Motorcycle Truck Limousine 7

8 NYAIP Contact Information Address 22 Cortlandt Street, 15 th Floor New York, NY Mailing Address PO Box 2318 Peck Slip Station New York, NY Tl Telephone Fax 8

9 NYAIP Contact Information Websites: Homepage: PASS: On Line Assignment Confirmation: (login and password required) Customer Service General Information: Rules, Procedures and Compliance: p PASS Processes and Support: E Pay: 9

10 NYAIP The central mechanism established tblihdpursuant to Atil Article 53 of thenewyorkinsurancelawtoprovideautoliabilityand physical damages coverages to those insureds who are unable to obtain such auto insurance in the voluntary market. All insurers writing automobile insurance in New York State must participate in the NYAIP by providing such insurance. All agents and brokers holding a valid license to transact automobile insurance business in New York State must be certified by the Governing Committee in accordance with standards and procedures approved by the Superintendent of Insurance prior to submitting applications to the Plan. 10

11 NYAIP The central mechanism established tblihdpursuant to Atil Article 53 of thenewyorkinsurancelawtoprovideautoliabilityand physical damages coverages to those insureds who are unable to obtain such auto insurance in the voluntary market. Applicants must declare and certify that they have tried and failed to obtain automobile insurance in New York State within the preceding 60 days and have been unable to obtain such insurance at rates not exceeding those applicable under the plan. NYAIP rules concerning assignments are developed in a subcommittee structure by insurance professionals (producer and company) and approved by the NYAIP Governing Committee and the Department of Financial Services. 11

12 Producer Certification Getting Certified License Requirements Lines of Authority Satellite Offices (NYS Insurance Reg 125) License Expirations Procedures Course Requirements Newly Certified Producers Attend within 60 days of certification Sublicensees: 5 or less, All sublicensees MUST attend. More than 5 sublicensees, only 5 are required to complete the course. The designated supervising producer of any satellite location must also complete the course. Continued Certification Complete course once every 4 year cycle for continued certification Only 1 sub licensee is required to take the course The designated supervising producer of any satellite location must also complete the course. For continued certification, producers may take the 2 day online course. Any producer whose certification has been suspended or revoked must complete the course in person. 12

13 Producer Certification Certification Application and Undertaking Statement Register at Download, print and complete application form at AIPSO.com/NY website. Attach a Copy of your PC or BR License from the NY Dept of Financial Services to the application. Sub Licensees and Affiliations must be indicated on application. Subscribe to NY Manuals and Circulars. A copy of the confirmation of subscription to NY manuals is required for certification Establish an account with ihlexisnexis i prior to certification to receive MVRs in PASS. Keep Your NYAIP Acknowledgement of Certification. It contains Certification Number needed to register for PASS 13

14 Producer Certification Register for PASS establishing a Login ID. Security features enable you to establish and manage a separate login for each user in your office. Satellite office requirement Sublicensee requirements Performance Standards Compliance Definition of Affiliation Important! 14

15 Registering for NYPASS The NYAIP online system is available to producers licensed in NY and certified with the NYAIP. This facility allows a producer to electronically bind and submit all NYAIP applications and policy change requests and electronically ll produce bar coded ID cards. Once a producer is certified and receives their certification number in the mail, they can proceed to register for NYPASS at ( NYPASS has enhanced Login and Management security features for your protection. Do not share your certification number, login ID or password. Managements tools are available for offices with multiple users. 15

16 Registering at NYPASS.COM Login ID and Password Requirements. Producer will establish their own login ID and password. No need to share logins if you have multiple users in your office. Establish and manage separate logins for each user. Video Tutorials: Video tutorials are available to walk you through hthe various processes. The tutorials are also offered as printable PDF documents Account Management Tools: You can add, change or disable users, establish individual user s logins and passwords, and you can even assign administrator rights to someone to manage these logins for you. 16

17 Special Investigations The Insurance Fraud Problem Insurance fraud costs the insurance industry an estimated $30 billion per year, according to the Insurance Information Institute. This costs the average household between $200 and $400 in increased automobile insurance premiums every year. The New York Automobile Insurance Plan has taken a strong stand against insurance fraud! The Plan s investigators and analyst have developed and maintain an effective fraud containment program for the detection, investigation and prevention of fraud in the automobile residual market. 17

18 Special Investigations New York Automobile Insurance Plan s Response The Plan s Special Investigations Unit was established in 2001 in cooperation with the New York State Department of Financial Services. This unit was expanded substantially in 2002 to perform investigative fieldwork and forensic analysis in conjunction with the NY State Insurance Fraud Bureau. Investigative efforts are coordinated with the Plan s subscriber carriers, and Federal, State, and Local law enforcement. The success of New York s fraud containment program is bi being acknowledged d by other Statet Plans implementing similar programs. 18

19 Affiliations Affiliation Reminder Producers need to be aware of the activities iii of those producers with whom they become affiliated. Adverse performance records that cause restrictions to be placed on any producer within an affiliate group, will affect the privileges, requirements, and certification of ALL of the producers in that group. Restrictions include, but are not limited to: ID card restrictions; Dishonored payment requirements; and PASS restrictions. 19

20 Peer Review Panel Appointed by the NY Superintendent of Financial Services to conduct hearings for adverse performance involving: Rate Evasion Premium Diversioni Fraud reported by carriers or IFB Performance Standard Violations Unbound dmvrs Ordered Od dthrough h PASS Deficient applications Dishonored payments Lt Late applications Misused ID cards Misused electronic binding Misused electronic app Pattern of abuse 20

21 Peer Review Panel Peer Review Penalties Conditioned Certification Suspended Certification Revoked Certification These penalties may include loss of commission, a requirement to repeat the Producers Procedures Course and the need to reapply for Plan certification when the penalty period has ended. 21

22 Assignments, Quotas, Eligibility Assignment Hierarchy Reassignment Household Random Quota Reduction Programs Voluntary Credit Programs; Youthful Males Territories Takeout 22

23 Assignments, Quotas, Eligibility Eligibility (Sections 3 and 9) New York Vehicles (registered or to be registered within 30 days) Non resident Students and Military Ineligible Applicant Program (IAP) Vehicles in transit/originating in NY (MV 82ITP) Commercial submitted as PP risks Pi Prior non good fih faith cancellations (Section 20) Valid license or permit for the type and class of the vehicle to be insured ( Section 9A1 9.A.1. ) See MV 500C and CDL 101 for information regarding commercial driver s license and any endorsement to these licenses at the DMV website: drivers license or 23

24 Ineligible Applicant Program Applies to all NYAIP assigned policies Includes severed coverage for which premium is not paid Unpaid earned premium due at cancellation Notice sent to policyholder & producer Reported to NYAIP after 20 days Can be resolved in PASS when applying for new coverage Appeal processes available Carrier Plan Expedited appeal (within 48 hrs) 24

25 Ineligible Applicant Program During the application process, reported unpaid earned premium is displayed and must be resolved in order to proceed further. 25

26 Ineligible Applicant Program Full payment and settlement options are available. If you are unable to settle directly with the carrier, there is also an option to Request Mediation/Appeal 26

27 Ineligible Applicant Program If you select Option 1 for Full Payment, Click here to print the prefilled Payment Transaction form. Mail to the carrier with the full earned premium payment. PAYMENT TRANSACTION FORM 27

28 Ineligible Applicant Program If you and the carrier agree on an alternative settlement amount, click on Option 2 Settlement with Carrier. Complete the required fields and click to print the prefilled Ineligible Applicant Payment Transaction form. Mail to the carrier with payment. 28

29 Ineligible Applicant Program Click on Option 3 if NYAIP mediation is requested. Plan Mediation is only available if the carrier and insured are unable to agree upon a settlement. 29

30 Ineligible Applicant Program When you select Mediation you will see this form. Simply complete the form and follow the instructions. 30

31 PASS Unbound MVRs MVRs and CLUE reports are automatically ordered for private passenger applications. MVR data is prefilled in the application. Clue information is not prefilled. If the application is not submitted or is submitted and subsequently retracted, the MVR is considered unbound. Unbound applications result from a variety of valid reasons, which cause applicants to decline coverage after the MVRs are ordered. LexisNexis provides the Plan with a discounted price for MVRs ordered that are already in its database as a result of receiving the record from a previous request made within the prior 60 days. However, the Plan pays a higher cost if Lexis Nexis must obtain a new MVR from the State. In theory, most MVRs obtained through PASS should be at a discounted rate since producers are required to make attempts to place the applicant in the voluntary market prior to submission to the Plan. 31

32 PASS Unbound MVRs Avoiding Unbound dmvrs Quick Quote (Private Passenger PASS) provides a quote based on the information entered by the producer without ordering an MVR. saves all information entered, if the insured decides to proceed with the application. Unbound MVRs Threshold No more than 5 total unbound/retracted MVRs and 30% full price/new MVRs permonth. Alerts In PASS PASS monitors unbound MVRs and provides producers with information and alerts about their unbound MVRs 32

33 PASS Unbound MVRs On the PASS Welcome page, the Plan Provides Alerts to Unbound MVR Performance. Please Note: Additional Certification Details are also displayed, including E Pay Status, ID Card deligibility, ibili # of Late Apps, # of Deficient Apps, LexisNexis Registration Status of Producer Procedure Course Requirement. Alert for Unbound MVRs status. 33

34 Information Updates and Alerts The Plan provides information updates and alerts by regarding issues such as: Unbound MVR Violations Expired Producer License Expired Producer Procedures Course Requirement PASS enhancements NYAIP procedural changes and requirements Aipso.com/NY Announcements ManualandInformation and Updates The alerts are issued to certified producers using the address provided when registering for PASS or AIPSO.com. To receive these important Information Updates, keep your address current in PASS and AIPSO.com. To update your account information: NYPASS log onto nypass.com and click onedit Profile. AIPSO log on to aipso.com/ny and click on your name in the upper right corner 34

35 Electronic Access to Manuals Producers MUST register at to access the NYAIP website Home Page for Manuals and Circulars. 35

36 AIPSO.com Registration Complete the required fields Reminder: Make Note of the Username & Password used for AIPSO.com since the login requirements differ from what you use in NYPASS. AIPSO.com utilizes the producer s address as the username. However, NYPASS does not use the address for login credentials and requires a unique username. 36

37 AIPSO.com Registration After submitting the registration page, you will receive a confirmation from AIPSO.com. It will contain a verification code and link to complete your registration. Dear New Producer, We are pleased to advise that you have been added as a Registered User to AIPSO.com. Your username is the address you provided at registration. The first time you log in, you will need to provide the following Verification Code: You can use the following link to complete your verified registration: &verificationcode= Thank you, AIPSO 37

38 AIPSO.com Registration Click on the Link contained in the Confirmation . First time login requires your Username, Password and the verification Code sent to you in by . 38

39 AIPSO.com Registration After login is complete, tabs will appear at the top of the page for access to manuals and circulars. 39

40 AIPSO.com Registration You must first subscribe for updates to the NYAIP Manual and Circulars. Choose s alerts from the left column 40

41 AIPSO.com Registration alerts: Check the box for 1 NY Manuals Circulars 2 NY Manuals Check the box for NY PPE Check the box for Symbol alerts 41

42 AIPSO.com Registration The NYAIP Certification process requires a copy of the confirmation of Registration to the NYAIP Electronic manual subscription. Please retain a copy of this confirmation confirmation. From: NY-Manuals [mailto:ny-manuals-owner@maillist.aipso.com] Sent: Wednesday, January 18, :05 AM To: New broker Subject: subscribe message Welcome! You have successfully subscribed to the NYAIP Electronic Manuals (emanuals) update notice list. This list will be used to update notices about changes to the NYAIP e-manuals. ATTENTION CERTIFIED PRODUCERS: Please remember that the NYAIP requires that producers maintain a subscription for updates to the Plan manuals for the duration of the period of certification. If this address changes, you must unsubscribe the expired address and subscribe the new address. Failure to maintain a subscription via an accurate, active address may jeopardize your certification status. To subscribe or unsubscribe to the NY-manuals list make changes and submit the form found after logging in at p p 42

43 Electronic Manuals alerts are provided d for all updates dt and revisions ii to the NYAIP manual. This is a typical e manuals message. To view the full text of the message, click on the link in the . 43

44 Electronic Manuals After login is complete, tabs will appear at the top of the page for access to manuals and circulars. 44

45 Electronic Manuals The NYAIP Homepage displays current announcements and provides access to all forms, guides and instructions in the section marked forms. 45

46 Electronic Manuals After logging in, you will be brought htto the manual page, click on New York Interactive Manual Then Choose Current Version 46

47 Electronic Manuals The left margin displays links, with sub chapters wherever a (+) is displayed. The right side displays manual text. Click on a link Click on a Link Or, search by a word and click go. Or Search by a word and click GO 47

48 Electronic Manuals For example, to review Uninsured Motorists limits & rates, 1. Click on the (+) to the left of 02 General Rules 2. Click on the (+) to the left of Rule 8. and 3. Clickon UninsuredMotoristsCoverage

49 Electronic Manuals Click on B. Supplementary Uninsured 49

50 Electronic Manuals Current manuals, prior versions of manuals and change notifications are available in PDF. Click on the appropriate link. 50

51 Electronic Manuals Changes to the NYAIP Manual of Rules & Rates are displayed under the What s New section of the New York Manuals Page. 51

52 Electronic Manuals Symbols & Identification Manual Click on this link to access Symbols and Identification Information. 52

53 Electronic Manuals Registration Symbols & Identification Manual Click on the appropriate bulleted circle and submit 53

54 Electronic Manuals Using the Electronic Symbol and Identification Manual Click on Interactive S&I Lookup 54

55 Electronic Manuals Using the Electronic Symbol and Identification Manual Sl Select lookup by VIN or Make Mk & Model 55

56 Electronic Manuals Using the Electronic Symbol and Identification Manual to obtain the correct symbol code NOTE: Discounts may require verification. 56

57 WebPages For Producers A company name and address directory is available at Aipso.com/ny in the left column under New York Plan Links Scroll down this same page for a list of Plan Documents which includes the instructions and application for certification. 57

58 WebPages For Producers The Company Directory provides DMV codes and contact information for all carriers receiving assignments or having policies in effect from prior NYAIP assignments. 58

59 Surcharges MVRs/CLUE PASS automatically orders MVRs and CLUE reports for private passenger applications. The data from the MVR is prefilled into the application and used to develop the rate and deposit premiums. Producers are required to review the CLUE report and enter all relevant accident and claim information to facilitate a better underwriting process. Information not provided on the reports must be entered by the producer. Surcharge determination and specific nonchargeable accident explanation is necessary to provide applicants with proper surcharge premium and carriers with any adequate non chargeability. 59

60 Surcharges Surcharge Experience Period The experience period is the 3 years ending on the last day of the 4 th month precedingthe effective date of the new or renewal policy 60

61 Policy Effective: MONTH Surcharges Surcharge Experience Period Each period begins and ends on the same day of the same month. For example the surcharge period for January 2014 is Sep 30, 2010 through Sep 30, YEAR Surcharge Period Surcharge Period Surcharge Period Jan Sep Sep Sep Feb Oct Oct Oct Mar Nov Nov Nov Apr Dec Dec Dec May Jan Jan Jan Jun Feb Feb Feb Jul Mar Mar Mar Aug Apr Apr Apr Sep May May May Oct Jun Jun Jun Nov Jul Jul Jul Dec Aug Aug Aug

62 Surcharges Rule 29 Additional Charges A.Eligibility This Rule applies to private passenger automobiles, low speed vehicles, personal use motorcycles, ATVs, snowmobiles, antique autos, classic autos, and named non owners. Exception: For risks of five or more motor vehicles, refer to Rule 51 for application of additional charges if the risk is not eligible for experience rating. B. Experience Period Determine additional charges based on accidents and convictions occurring during the three years ending on the last day of the fourth month preceding the effective date of the new or renewal policy. 62

63 Surcharges Rule 29 Additional Charges C. Application Additional charges are applicable to bodily injuryliability liability, propertydamage liability, mandatory personal injury protection, and collision coverages. Exception: For motorcycles, additional charges are applicable to bodily injury liability, property damage liability, personal injury protection, medical payments, and collision i coverages only. D. Assign penalty points for convictions and accidents involving i the applicant, principal i operator, and anyone who usually operates the motor vehicle. 63

64 Surcharges 64

65 Surcharges 65

66 Note: Assign two penalty points for conviction of two separate moving traffic violations other than those set forth above and two penalty points for each additional conviction. Moving traffic violations include: (1) Operating a motor vehicle in violationofarestrictiononadriver s license as defined In Section of the Vehicle and Traffic Law; (2) High occupancy vehicle (HOV) lane violations. (3) Mobile telephone or portable electronic device violations. Surcharges 66

67 Surcharges Note: Assign two penalty points for: (1) the first two automobile accidents, other than those set forth above, resulting in damage to any property, including his or her own, regardless of the amount of damage and two points for each additional accident. (2) the first two at fault accidents that were incurred by operators other than usual operators and two points for each additional accident. 67

68 Surcharges Rules of Application a. Do not assign penalty points for accidents and/or convictions incurred by an operator demonstrated to be a named insured or an operator of an automobile insured under a separate policy provided that an additional charge for such accident/conviction has been applied to said policy and satisfactory proof of same is secured by the assigned carrier. b. Do not consider an automobile rolling from a parked position as lawfully parked, but consider it as the operation of the last operator. 68

69 Surcharges Multicar Risks (1) Where there is a single operator, apply penalty points to the highest rated motor vehicle subject to a maximum additional charge of 200%. (2) Where there are multiple operators, apply penalty points of each operator to the motor vehicle they usually operate subject to a maximum additional charge of 200% per motor vehicle. 69

70 Surcharges Refund of Additional Charge Refund or credit any additional premium to present or former insureds in any of the following circumstances: An insuredhas theoption of receiving ii a dollar refund in lieu of a credit if (1) it is subsequently established that the accident for which an additional charge was applied falls under one of the exceptions enumerated above, or (2) the conviction for a chargeable violation or traffic infraction is ultimately reversed, or (3) an additional charge was levied through mistake, carelessness, misinformation, or other error, or (4) the insurer has established a reserve but no claim was submitted for a period of the three years after the date of the incident, or the statute of limitations has run and no suit has been filed. the insurer has established a reserve but no claim was submitted for a period of the three years after the date of the incident, or the statute of limitations has run and no suit has been filed. 70

71 Surcharges Snowmobiles Penalty points applicable for the rating of other vehicles owned by the insured will have dual application i and additionally be applied in the rating of a snowmobile. 71

72 4. Exceptions Surcharges a. Do not consider the following as moving traffic violations: (1) Any motor vehicle equipment requirement of the Vehicle and Traffic Law, including any seat belt violation (2) Failure to display proper number plates provided such plates are in existence (3) Failure to have in possession operator s or chauffeur s license provided there is one in existence (4) Failure to display aninspection sticker provided such sticker is in existence 72

73 Surcharges b. Do not assign penalty points for accidents under the following circumstances: (1) when the auto was lawfully parked; or (2) the insured or insurer has received reimbursement or a judgment of 33⅓% or more of the value of the insured s property damage claim. The value of the insured s property damage claim is defined as the lesser of the adverse carrier s or the insured s estimate; or (3) when the auto of the insured or other operator resident in the same household was struck in rear by another vehicle, and the insured or other resident operatorhas not been convicted ofa moving traffic violation in connection with the accident; or 73

74 Surcharges b. Do not assign penalty points for accidents under the following circumstances: (4) whenthere was anothermotorvehicle involved in the accident, the driver of the other motor vehicle was convicted of a moving traffic violation, and the applicant, insured, orother other operator was not convicted of a moving traffic violation; or (5) when the auto operated by the insured or other operator resident in the same household was struck by a hit and run vehicle, if the accident is reported to the proper authority within 24 hours by the insured or resident operator; or (6) accidents involving damage caused by contact with animals; or 74

75 Surcharges b. Do not assign penalty points for accidents under the following circumstances: (7) accidents resulting li in damage limited i to and caused by flying gravel, missiles, or falling objects; or (8) applicant, insured, otheroperatorresident operator resident in the same household, or owner who receives payment under mandatory personal injury protection or additional personal injury protection whensuch individual is not at fault or the vehicle was not in operation. The establishment of a residual bodily injury liability reserve will not in itself imply pythat the insured was at fault. An additional charge may not be imposed for bodily injury if the accident that resulted in the bodily injury is already subject to an additional charge; or 75

76 Surcharges b. Do not assign penalty points for accidents under the following circumstances: (9) when a paid or volunteer member of any police or fire department, first aid squad, or any law enforcement agency was using any vehicle in the performance ofhis orherduty duty, orwas performing any other governmental function in a public emergency; or (10) when the insured or other resident in the insured s household operates a vehicle for hire or a motor vehicle other than a private passenger automobile, and the accident occurred while in the course of employment and said accident did not result in a conviction for a moving traffic violation; or 76

77 Surcharges b. Do not assign penalty points for accidents under the following circumstances: (11) accidents involving i bodily injury or property damage occurring whilethe h insured was operating, as an employee, a commercial motor vehicle furnished to such employee by the employer. This exception does not apply undereither ofthe following circumstances: (a) The insured was not acting within the scope of employment and in the discharge of his or her duties at the time of the accident. (b) The accident was caused by the intentional actions or recklessness of the insured, or by the negligent gg operation of the commercial motor vehicle by the insured. The term negligent operation as used here does not include the insured s failure to refuse to drive or operate a commercial vehicle that has a defective condition where theinsuredisawareofthe defective condition and has reported it to his or her immediate supervisor or employer. 77

78 Surcharges b. Do not assign penalty points for accidents under the following circumstances: (12) accidents incurred by an operator demonstrated to be a named insured or a principal operator of an auto insured under a separate policy provided that a additional charge for such accident has been applied to said policy; or (13) accidents for which the operator is not at fault. The establishment of a reserve will notin itself imply that the operatorwas at fault. 78

79 Surcharges Additional Charges Rule 29 Penalty Points Factor or more

80 Surcharges Inexperienced Operator Must be principal operator (50% or greater use) 20% charge for Liability, PIP and Collision coverages The Inexperienced Operator Surcharge may be applied if the principal operator cannot provide verifiable documentation that they have been previously licensed for a total of 3 years, excluding any period of revocations or suspensions. 80

81 Discounts Accident Prevention Courseoriginal certificate required, 10% Passive Restraints Anti lock Brakes Running Lights Anti theft Device Multicar Driver Training Careful Driver Credit 81

82 Coverage Supplementary Spousal Liability ATV Restrictions: 25/50/10 Snowmobiles: 10/20/5 Increased limit factors (Rule 23 for private passenger types and Rule 50 for commercial see charts on next two pages) pg 82

83 Limits of Liability Coverage Bodily Injury Liability 25/50 50/ / /500 Property Damage Liability Commercial CSL ,000 and 1,000,000 (other than Taxicabs & Limousines) 1,500,000 and 5,000,000 (available if required by law) 83

84 Coverage Optional lsplit Limits; i Rule 23 84

85 Optional Single Limits Coverage The increased limits table below shows the factors to be applied to the 25/50/10 rates combined to determined the premium for optional single limits 85

86 Coverage Limits Required By Law Single limits 86

87 Coverage Limits i Required dby Law Split limitsi 87

88 Coverage Limits Required By US Department of State Office of Foreign Missions 88

89 Optional Single Limits Coverage 89

90 Coverage Optional Single Limits Rule 50 90

91 Coverage Uninsured Motorist Coverage Statutory Supplementary UM (no ATVs or snowmobiles) Personal linjury Protection ti Coverage (Rule 9) Full PIP $200FamilyDeductible (individually owned autos) OBEL Pedestrian PIP ATVs/Motorcycles Additional PIP options 91

92 Coverage Medical Payments (Rule 30) available for private passenger automobiles not for hire (at limits $1000 or $5000) and motorcycles used for private passenger purposes (at limits of $1000). Private Passenger Limits & Premiums Motorcycle Limits and Premium Determination 92

93 Coverage Physical Damage Coverage Physical Damage Coverage is available for Private Passenger and Light Commercial vehicles (under 10,000 pounds). NOTE: Both Comprehensive and Collision coverage must be written for light commercial vehicles. Comprehensive coverage alone isnot available. Maximum Loss Payable Amount ($75,000) Transportation and loss of use $40 per day; $1200 maximum Full Glass Rule 32 Private Passenger Auto with Comprehensive coverage of $100, $200, $250, $500 or $1, 000 deductible, can obtain full window glass coverage on the same vehicle at the request of the insured. 93

94 Coverage Physical Damage Coverage Customization Buyback (Rule 34) Classic autos (25 yrs or more not eligible for Physical Damage coverage) (Rule 35) Antique autos not eligible Premium difference for comp w/o collision Physical Damage coverage is NOT available for lightcommercialvehicles ofanyrisk consisting of 10 or more vehicles of any type. 94

95 Coverage Deductibles Private Passenger ($100, 200, 250, 500, 1,000, 2,500, 5,000) Motorcycles ($100, 250, 500, 1,000) Recreational Trailers ($250, 500, 1,000) Camper Bodies ( $250, 500, 1,000) Light Comml Vehicles ( $250, 500, 1,000, 2,500, 5,000) Motorhomes ( $250, 500, 1,000, 2,500, 5,000) Church Buses ( $250, 500, 1,000, 2,500, 5,000) Driver Education Cars ($250, 500, 1,000, 2,500, 5,000) NOTE: Both Comprehensive and Collision coverage must be written for Light Commercial, Camper Bodies, Motor Homes and Church Buses. Comprehensive coverage alone is not available 95

96 Regulation 79 Compliance Authorization for Inspections Forms On Line 96

97 Regulation 79 Compliance Authorization for Inspections Forms On Line The Authorization for Inspection form will automatically generate, pre fill & print with all PASS/EASi applications & endorsements for which physical damage coverage is requested, using the following information which was entered in the application/endorsement. Producer Name and Address Applicant Name and Address Vehicle hil Description Policy Number (For endorsements Only) PASS/EASi Reference number for new applications Effective Date/Time of coverage Additionally, the automated form will provide: The Authorization for Inspection Form Number Automatically generate and print the completed 5 part form A separate authorization form for each eligible vehicle on the application or endorsement Remember: The completed application and signed authorization form must be mailed to the Plan for processing. The completed Policy Change Request (Endorsement) and signed authorization must be mailed to the assigned carrier. 97

98 Regulation 79 Compliance Physical Damage Inspection Requirements (NY Regulation 79) An Authorization Form Must Be Completed for New, Unused Vehicles (no demos): 1. Complete waiver section on authorization ti form 2. Submit : (A) Bill of Sale that lists all options, or (B) MV 50 and window sticker or shipping invoice listing options and price. 98

99 Regulation 79 Compliance Physical Damage Inspection Requirements (NY Regulation 79) Used and Demo Vehicles Inspections must be performed within 14 days (effective 4/1/2015 for private passenger vehicles and 8/1/2015 for motorcycles.), Present vehicle at authorized CARCO Inspection site; See website for site locationlists lists carcogroup.comcom or call CARCO s automated site locator; TELESITE ( ) IMPORTANT NOTE: Effective Nov. 1, 2010 Producers may perform inspections on NYAIP business only if the producer is an authorized CARCO inspector. Additionally, inspections performed on the business must be submitted electronically to CARCO on the same day the inspection is performed 99

100 Regulation 79 Compliance Physical Damage Inspection Requirements (NY Regulation 79) CAUTION Failure to submit new vehicle waiver documents will result in a delayed loss settlement or mandatory inspection. Failure to present a used vehicle for inspection within 14 days (effective 4/1/2015 / for private passenger and light commercial vehicles under 6500 lbs and 8/1/2015 for motorcycles) will cause physical ldamage coverages to be suspended ddand such losses not paid. 100

101 Regulation 79 Compliance Sample Authorization form for cars. Reminder : The Authorization for Inspection Form is automatically generated and pre filled for new applications and policy change requests. There is a slightly different form generated for motorcycles. 101

102 Payment Options Deposits Deposits may be submitted as: Producers Check Applicants Certified Check Bank Check Money order E Payment (Producer sweep account,applicant credit/debit card or Applicant 3 rd party credit/debit card). Premium Finance Draft (with insured s 15%). NOTE Commercial new business is not eligible for credit card use. 102

103 Payment Plans Payment Options Private Passenger/Commercial Applications 2 or 6 installments (25% down) SRDP Applications (For any limits of $750,000 or greater): 2 installments (30% down), 3 installments (40% down) Public Autos 2 installments (30% down), 3 installments(40% down), 7 installments (30% down). Policy Change Requests 30% of estimated annual premium or Total Full Pro Rata Premium for the remainder of the policy period, whichever isless less. NOTE: All installments are subject to a $5 installment fee 103

104 Payment Options Electronic Payments E Pay Two forms of Electronic Payments are available: 1. Producer Sweep Account Uses a producer s preregistered checking account to sweep the funds. Option available for private passenger and commercial applications as well as policy change requests for assigned applications. 2. Credit Cards Cardholders must be present and must sign the credit card authorization form. Producer must verify cardholders identity. New Business Applications Producers MUST ATTACH the signed credit card authorization form to the new business application sent to the PLAN. Policy Change Requests Producers MUST FAX the signed credit card authorization form for policy change requests to the PLAN at Insureds can pay required deposit or entire annual premium using Amex, MC, Visa or Discover Card thru a vendor service which charges the cardholder either a 2 ½ % service fee for credit cards and 1% service fee for debit cards. Third party credit cards (other than producer or insured) are accepted. The credit card option is available for private passenger applications and policy change requests on assigned applications (both private and commercial). Credit cards are not currently available for commercial new business applications. Applicant s credit/debit option is not currently available for commercial new business applications. The E Pay User Guide for Electronic Payment Process is available in the PASS Forms Library under Producer Guides. 104

105 Effective Dates All applications and endorsements must be submitted through PASS. PASS applications and policy change requests are therefore effective as of the date and time of transmission with the following exceptions: Applicant requests a later effective date Risks requiring filings or limits above $1,000,000 may be subject to 15 day delay from date of assignment Commercial applications where the application and deposit are not received within 30 days of transmission. Endorsement Note: As per Section 15 of Plan Rules, carriers are required to provide a fax number for producers to fax policy change requests except when original documentation or deposit (other then e pay) are required. A Directoryofof CompanyFax numbersis available in the Producers Forms Library in PASS. 105

106 Effective Dates Effective Date Procedures Commercial Applications bound in PASS, but not received by the Plan with 30 days, are effective based on the date and method of delivery and/ or other conditions described in Plan rules such as: Delivered by 1st class mail Hand delivered to NYAIP Delivered by Certified Mail Delivered by Express Delivery If an NYAIP ID card is used to secure initial registration 106

107 Supporting Documents Driver s license (when a NY MVR is not available) MVR (except for Private Passenger PASS) Proof of birth for non licensed applicants Notarized foreign license translation (not International PERMIT) Discount documents (driver training, accident prevention, antilock, etc) Registration, if vehicle is already registered. Prior carrier termination for CDC Signed Inspection Authorization form Evidence of household insurance (faxed to the Plan within 24 hours of application submission) In Transit Apps require MV 82 ITP and In Transit Cancellation request form Credit Card Application Authorization/Signature page Note: Application deficiencies orperformance complaints may be applied if supporting documentation is not submitted with the application/policy change request. 107

108 Cancellations Minimum i Premium (Sections 18, 19, 20, Rules 3, 6, 7) Insured request cancellations (Rule 3) short rate, except: Placed in voluntary market or the SRDP Enters military Named insured deceased Auto stolen, total loss (60 day notice) In transit Premium financed 108

109 Cancellations Minimum i Premium (Sections 18, 19, 20, Rules 3, 6, 7) Carrier cancellations (prorate); Reasons (Sec 18): Ineligible policyholder Failure to respond to 2 underwriting requests Failure to cooperate in claim investigation Unsafe vehicle Fraud, misrepresentation Physical damage coverage suspension Severable and Divisible Policy cancellations Carriers may sever a private passenger policy when coverages (other than mandatory) are added to a policy that is paid in full and the premium for the added coverage is not paid 109

110 Cancellations Minimum i Premium (Sections 18, 19, 20, Rules 3, 6, 7) Minimum premium (Rule 6) $60 Private passenger, excess coverage, non owner 10% for premium financed policy not cancelled at inception. Flat cancellation (Sec 18) within 15 days of ID card issuance Appellate Rights Company and non payment cancellations (Sec 18) Ineligible ibl Applicant Program (Sec & Sec 15A7 Suspensions (Rule 7) 110

111 Cancellations Reinstatement with Lapse (sec 11.I) 20 day window $25 fully earned fee Commission is paid on the fee Carrier may reinstate t within term or issue new annual policy Premium finance issues involving new annual policy Reinstatement with Lapse currently only available aaabeo for Private Passenger non fleet policies. 111

112 Cancellations Severable Cancellations Effective August 1, 2011 Rules Sec (5) was amended to provide for severable cancellations. Carriers may sever a policy and cancel only the added coverages under the following circumstances: 1. The vehicle is written on a private passengerpolicypolicy only, (including motor cycles),and 2. There is a request to add coverages other than the required coverages specified in Sec. 10 of the Plan, and 3. The policy is paid in full and the premium for the added coverage is not paid. Severability would not apply to private passenger vehicles written on a commercial policy,and when the transaction is combined with any other request such as, replace a vehicle. Refer to NYAIP Info Update (11 06) issued April

113 Producer Commissions and Fees Fees: (Sec 21.C ) $50MaximumServiceFee per application or per renewal(pp) Certified Mail Express Delivery Non NY operator s MVR 113

114 Producer Commissions and Fees Commission (Sec. 21.A) $35 or 10% of the correct earned premium, which ever is greater (minimum commission) 5% LH Trucks, Public Autos exc. School Buses 8% NY Public Auto Pool Safety Group Dividend Program 10% All others 114

115 Performance Standards - Producer (Sec. 15A) Applications Rt Return commission i Policy change requests Claims Payments NYPAP Safety Group Dividend Program Ineligible Applicant Program 115

116 Performance Standards - Company (Sec. 15) Issuance of original policy Endorsements Return premiums Premium collection Commissions ID cards Claim handling & reporting requirements Telephone/Fax requirements 116

117 Performance Standards - Company (Sec. 15) Motor vehicle records Cancellation by insurer Premium Dispute Renewal policies FH 1 Certificates Certificates of insurance Standard insurance premium information Loss information NYPAP Safety Group Dividend Program 117

118 Performance Standards - Company (Sec.15) Producer notification upon change of producer Claims inquiry form Dishonored payments Immediate or expedited binding procedures Takeout Credit Program Producer Ownership of Expirations Ineligible Applicant Program Risks That Become Eligible for SRDP Midterm 118

119 Overview The End 119