new york automobile insurance plan

NEW YORK
AUTOMOBILE
INSURANCE PLAN
Producer
Procedures
Course
1
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
Session Overview
General Subjects
• Coverages
• Regulation 79 Compliance
• Payment Options
• Effective Dates
• Supporting Application Documents
• Cancellations
3
Session Overview
General Subjects
• Producer Commissions & Fees
• Performance Standards
Private Passenger
• Classifications
• PASS New Business Application
• PASS Retraction & Flat Cancellation
PASS Endorsements
•Private Passenger and Commercial
•Pre-PASS Assignments
4
Session Overview
Commercial Information
• Trucks, Tractors, Trailers
• Public Transportation
• Garage Coverage
• Non-owned Coverage
• Miscellaneous Section
• Light Commercial Physical Damage
5
Session Overview
Commercial Information
• PASS New Business Application
• PASS Retraction & Flat Cancellation
• Other Commercial Forms
Special Risk Distribution Procedure
6
Session Overview
Miscellaneous PASS Options
• ID Card
• Inquiry Reprint
Rating Examples
• Motorcycle
• Truck
• Limousine
7
NYAIP Contact Information
Address
22 Cortlandt Street, 15th Floor
New York, NY 10007-3151
Mailing Address
PO Box 2318
Peck Slip Station
New York, NY 10272-2318
212-943-5100 - Telephone
212-742-2116 - Fax
8
NYAIP Contact Information
Websites:
• Homepage: www.aipso.com/ny/
• PASS: www.nypass.com
On Line Assignment
Confirmation: www.aipso.com
(login and password required)
Customer Service Email:
• General Information: nyaip@aipso.com
• Rules, Procedures and Compliance: nyaipinq@aipso.com
• PASS Processes and Support: passhelp@aipso.com
• E-Pay: epayissues@aipso.com
9
NYAIP
The central mechanism established pursuant to Article 53 of
the New York Insurance Law to provide auto liability and
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
NYAIP
The central mechanism established pursuant to Article 53 of
the New York Insurance Law to provide auto liability and
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 Insurance Department.
11
Producer Certification
Getting Certified
•
•
License Requirements
•
Lines of Authority
•
Satellite Offices
•
License Expirations
Procedures Course Requirements
•
Attend within 60 days of certification
•
Sublicensees
•
Complete course every 4 years for continued
certification
12
Producer Certification
•
•
Certification Application and Undertaking
Statement
•
Download, print and complete application from
NYAIP website
•
Attach Copy of License
•
Affiliations
•
Register for On Line Manual and Circulars
•
Keep Email acknowledgment of subscription to NY
Manuals. Needed for Certification.
Keep Your NYAIP Acknowledgement of
Certification
•
It contains Certification Number needed to
register for PASS
13
Producer Certification
•
Register for PASS establishing a Login ID. New Security
features enable you to establish and manage a separate
login for each user in your office.
•
Register with Lexis Nexis (within 30 days of registration)
•
Register at AIPSO.com and subscribe to NY Manuals and
Circulars. A copy of the Email confirmation of subscription to
NY manuals is required for certification
•
Satellite office requirement
•
Sub-licensee requirements
•
Performance Standards Compliance
•
Definition of Affiliation – Important!
14
Producer Certification
Affiliation Reminder
Producers need to be aware of the activities 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 privilege restrictions;
• Certified check requirements; and
• PASS privilege restrictions.
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 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 (www.nypass.com) .
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.
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.
Account Management Tools:
You can add, change or delete
users, establish individual
user’s logins and passwords,
and you can even assign
administrator rights to
someone to manage these
logins for you.
Video Tutorials:
Video tutorials are
available to walk you
through the various. The
tutorials are also offered
as printable PDF
documents
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.
18
Special Investigations
New York Automobile Insurance Plan’s Response
• The Plan’s Special Investigations Unit was established
during 2001 in cooperation with the New York State
Insurance Department.
• 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 being acknowledged by other State Plans
implementing similar programs.
19
Peer Review Panel
Appointed by NY Superintendent of Insurance to
conduct hearings for adverse performance
involving:
•
•
•
•
•
Rate Evasion
Premium Diversion
Fraud reported by carriers or IFB
Performance Standard Violations
Unbound MVRs Ordered through
PASS
• Deficient applications
•
•
•
•
•
•
Dishonored checks
Late applications
Misused ID cards
Misused electronic binding
Misused electronic app
Pattern of abuse
20
Peer Review Panel
Peer Review Penalties
• Conditioned Certification
• Suspended Certification
• Revoked Certification
21
Assignments, Quotas, Eligibility
Assignment Hierarchy
• Reassignment
• Household
• Random
Quota Reduction Programs
• Voluntary Credit Programs;
• Youthful Males
• Territories
• Takeout
22
Assignments, Quotas, Eligibility
Eligibility (Sections 3 and 9)
• New York Vehicles (registered or to be registered)
• Non-resident Students and Military
• Ineligible Applicant Program (IAP)
• Vehicles in-transit/Originating in NY
• Commercial submitted as PP risks
• Prior non-good faith cancellations (Section 20)
• Valid license or permit for the type and class of
the vehicle to be insured ( Section 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:
www.nydmv.state.ny.us/forms/cd1101.pdf or
www.nydmv.state.ny.us./forms/mv500c.pdf
23
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
Ineligible
Applicant
Program
During the
application process,
reported unpaid
earned premium is
displayed and must
be resolved in order
to proceed further.
Full payment (1a)
and settlement
options (1b)are
available…
25
Ineligible Applicant Program
If you select Full
Payment,1a, Click here
to print the form and
mail to carrier with the
full earned premium
payment .
26
Ineligible Applicant Program
If you and the carrier
agree on an alternative,
click on bullet 1B on the
first screen; then select
Save. Then click to print
the form and mail to
the carrier with partial
payment.
27
Ineligible Applicant Program
Click on bullet 2A or 2B
if the application
cannot be completed.
Click on bullet 3A or 3B
if NYAIP mediation is
requested.
28
Ineligible Applicant Program
When you select
“Mediation”
you will see this
form.
Simply complete
the form and
follow the
instructions.
29
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 assigned, 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.
•
Lexis Nexis provides the Plan 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.
30
PASS Unbound MVRs
Avoiding Unbound MVRS
• 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 per
month, of which no more than 30% should be new
MVRs.
• Alerts In PASS
• PASS monitors unbound MVRs and provides
producers with information and alerts about their
unbound MVRs
31
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 Eligibility, # of Late Apps,
Lexis Nexis Registration and Status of Producer Procedure Course
Requirement.
Producers are provided alerts as to their status for Unbound MVRs.
32
Information Updates
and E-Mail Alerts
The Plan provides updates and important information by
email regarding issues such as:
•Unbound MVR Violations
•Expired Producer License Alerts
•Expired Procedures Course Alerts
•PASS enhancements
• NYAIP procedural changes and requirements
•Aipso.com/ny Announcements
•Manual and Information Updates
The alerts are issued to certified producers using the email address
provided when registering for PASS or AIPSO.com. To receive these
important Information Updates, keep your email address current in
PASS and AIPSO.com.
To update your account information:
NYPASS-logon to nypass.com and click on Edit Profile.
AIPSO-log on to aipso.com/ny and click on your name in the upper
right corner
33
Electronic Access to Manuals
Producers MUST register at
www.aipso.com/NY.
to access the NYAIP
website Home Page for
Manuals and Circulars.
34
AIPSO.com Registration
Complete the
required fields
Reminder: Make Note of the Username & Password used for
aipso.com. It may differ from what you use in NYPASS.
35
AIPSO.com Registration
After submitting the registration page, you will receive a confirmation
Email 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 email address you provided at registration.
The first time you log in, you will need to provide the following Verification
Code: 0-99999
You can use the following link to complete your verified registration:
http://www.aipso.com/Default.aspx?ctl=login&username=newbroker@xxx.com
&verificationcode=0-99999
Thank you,
AIPSO
36
AIPSO.com Registration
Click on the Link
contained in the
Confirmation Email.
First Time Login
requires your
Username, Password
and the verification
Code sent to you in
that Email.
37
AIPSO.com Registration
After login is complete, tabs will appear at the top of the page for
access to manuals and circulars.
38
AIPSO.com Registration
You must first
subscribe for
updates to the
NYAIP Manual
and Circulars.
Choose Emails
alerts from the
left column
39
AIPSO.com Registration
Email alerts:
Check the box for
1-NY-ManualsCirculars
2-NY Manuals
Check the box
for NY-PPE
Check the box
for Symbol
Email alerts
40
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 email confirmation.
From: NY-Manuals [mailto:NY-Manuals-owner@maillist.aipso.com]
Sent: Wednesday, January 18, 2012 11:05 AM
To: New broker
Subject: subscribe message
Welcome! You have successfully subscribed to the NYAIP Electronic Manuals (emanuals) update notice e-mail list. This list will be used to e-mail 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 e-mail address changes, you
must unsubscribe the expired e-mail address and subscribe the new e-mail
address. Failure to maintain a subscription via an accurate, active e-mail
address may jeopardize your certification status.
To subscribe or unsubscribe to the NY-manuals e-mail list make changes and
submit the form found after logging in at
https://www.aipso.com/EmailAlerts.aspx
41
Electronic Manuals
Email alerts are provided for all updates and revisions 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 email.
Revision:
NY-2012-Revision-001
Effective Date: February 15, 2012 for new business and April 1, 2012 for renewal business
Summary of Changes:
Manual of Rules and Rates
The Commercial Automobile Liability rates, including rates for personal injury protection (Rule 9),
zone rated autos (Rule 74), additional provisions for automobile and trailer dealers (Rule 90), hired
automobiles (Rule 98), nonowned auto liability coverage (Rule 99), drive other car coverage (Rule
101), and leasing or rental concerns (Rule 119) are revised.
In addition, the rating factors for increased limits (Rule 50) and the long distance zone definitions
(Rule 74) are revised.
The electronic manual is available at New York Manuals. (Analyst: Link this to state manual page.)
A downloadable Adobe PDF version of this Revision is now available and the interactive manual will
be updated on the effective date.
You received this message because you have subscribed to the Electronic Manuals E-mail Alerts.
42
Electronic Manuals
After login is complete, tabs will appear at the top of the page for
access to manuals and circulars.
43
Electronic Manuals
The NYAIP
Homepage
displays current
announcements
and provides
access to all
forms, guides and
instructions in the
section marked
forms.
44
Electronic Manuals
After logging in, you will be brought to the manual page,
click on “New York Interactive Manual
Then Choose Current Version”
45
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
46
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. Click on “Uninsured Motorists Coverage
1
2
3
47
Electronic Manuals
Click on “B. Supplementary Uninsured…”
48
Electronic Manuals
Current manuals, prior versions of manuals and change notifications
are available in PDF. Click on the appropriate link.
49
Electronic Manuals
Changes to the NYAIP Manual of Rules & Rates are
displayed under the “What’s New” section of the New York
Manuals Page.
50
Electronic Manuals
ISO Symbols & Identification Manual
Click on this
link to access
Symbols and
Identification
Information.
51
Electronic Manuals
Registration-ISO Symbols & Identification Manual
Click on
the appropriate
bulleted circle and submit
52
Electronic Manuals
Using the Electronic Symbol and Identification Manual
Click on
“Interactive
S&I Lookup
53
Electronic Manuals
Using the Electronic Symbol and Identification Manual
Select lookup by VIN or Make & Model
54
Electronic Manuals
Using the Electronic Symbol and Identification
Manual to obtain the correct symbol code
55
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
Application Deficiency
Code list.
56
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.
57
WebPages For Producers
Since PASS displays for you any application deficiencies,
the deficiency code list is provided on aipso.com/ny under
Plan Documents.
58
Surcharges
MVRs
• 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.
• 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
Surcharges
Surcharge Experience Period
The experience period is…“the 3 years
ending on the last day of the 4th month
preceding the effective date of the new or
renewal policy…”
60
Surcharges
Surcharge Experience Period
Each period begins and ends on the same day of the same month. For example
the surcharge period for January 2012 is Sep 30, 2008 through Sep 30, 2011.
Policy
Effective:
MONTH
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
YEAR
2012
2013
2014
Surcharge Period
Surcharge Period
Surcharge Period
Sep 30
Oct 31
Nov 30
Dec 31
Jan 31
Feb 29
Mar 31
Apr 30
May 31
Jun 30
Jul 31
Aug 31
2008-2011
2008-2011
2008-2011
2009-2011
2009-2012
2009-2012
2009-2012
2009-2012
2009-2012
2009-2012
2009-2012
2009-2012
Sep 30
Oct 31
Nov 30
Dec 31
Jan 31
Feb 28
Mar 31
Apr 30
May 31
Jun 30
Jul 31
Aug 31
2009-2012
2009-2012
2009-2012
2009-2012
2010-2013
2010-2013
2010-2013
2010-2013
2010-2013
2010-2013
2010-2013
2010-2013
Sep 30
Oct 31
Nov 30
Dec 31
Jan 31
Feb 28
Mar 31
Apr 30
May 31
Jun 30
Jul 31
Aug 31
2010-2013
2010-2013
2010-2013
2010-2013
2011-2014
2011-2014
2011-2014
2011-2014
2011-2014
2011-2014
2011-2014
2011-2014
61
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
Surcharges
Rule 29 Additional Charges
C. Application - Additional charges are applicable to
bodily injury liability, property damage 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 coverages only.
D. Assign penalty points for convictions and accidents
involving the applicant, principal operator, and anyone
who usually operates the motor vehicle.
63
Surcharges
64
Surcharges
65
Surcharges
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
violation of a restriction on a driver’s
license as defined In Section 509.3 of
the Vehicle and Traffic Law;
(2) High occupancy vehicle (HOV) lane
violations.
Please refer to Note for Penalty
Points applicable to Mobile Device
Surcharge.
66
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
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
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
For private passenger automobiles or motorcycles,
penalty points are assignable for accidents only
while operating a private passenger automobile or
motorcycle.
69
Surcharges
Refund of Additional Charge
Refund or credit any additional premium to present or former insureds in
any of the following circumstances: An insured has the option of receiving 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
Surcharges
Snowmobiles
Penalty points applicable for the rating of other vehicles
owned by the insured will have dual application and
additionally be applied in the rating of a snowmobile.
h. Assign penalty points for all accidents resulting in
bodily injury or property damage or for violations
resulting in convictions incurred during a period of
suspension or revocation of the operator’s license of an
applicant, insured, other usual operator, or any individual
operator,
71
Surcharges
4. Exceptions
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 an inspection sticker
provided such sticker is in existence
72
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
operator has not been convicted of a moving traffic
violation in connection with the accident; or
73
Surcharges
b. Do not assign penalty points for accidents
under the following circumstances:
(4) when there was another motor vehicle involved in
the accident, the driver of the other motor vehicle
was convicted of a moving traffic violation, and the
applicant, insured, or 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
Surcharges
b. Do not assign penalty points for accidents
under the following circumstances:
(7) accidents resulting in damage limited to and caused
by flying gravel, missiles, or falling objects; or
(8) applicant, insured, other operator resident in the
same household, or owner who receives payment
under mandatory personal injury protection or
additional personal injury protection when such
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 that 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
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 of his or her duty, or was
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
Surcharges
b. Do not assign penalty points for accidents
under the following circumstances:
(11) accidents involving bodily injury or property damage occurring while the
insured was operating, as an employee, a motor vehicle, other than a public
livery vehicle, furnished to such employee, by the employer. This exception
does not apply under either of the 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 operation of the 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 vehicle
that has a defective condition where the insured is aware of the
defective condition and has reported it to his or her immediate
supervisor or employer.
77
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
not in itself imply that the operator was
at fault.
78
Surcharges
Additional Charges Rule 29
Penalty Points Factor
1
2
3
4
5
6
7
8
9
1.00
1.15
1.25
1.35
1.50
1.75
2.00
2.10
2.20
10
2.30
11
2.40
12
2.50
13
2.60
14
2.70
15
2.80
16
2.90
17 or more 3.00
79
Surcharges
Inexperienced Operator
• Must be principal operator (50%
or greater use)
• 20% charge for Liability, PIP and
Collision coverages
80
Discounts
•
•
•
•
•
•
•
•
Accident Prevention Course
Passive Restraints
Anti-lock Brakes
Running Lights
Anti-theft Device
Multicar
Driver Training
Careful Driver Credit
81
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)
82
Coverage
Limits of Liability
• Bodily Injury Liability
• 25/50 - 50/100 - 100/300 - 250/500
• Property Damage Liability
• 10 - 25 -50 -100
• Commercial CSL
• 60 -100 - 300 – 500, 750,000, 1,000,000
• 1,500,000 and 5,000,000
(available if required by law)
83
Coverage
Optional Split Limits; Rule 23
84
Coverage
Optional Single Limits
• The increased limits table below shows the factors
to be applied to the 25/50/10 rates combined to
determined the premium for optional limits
85
Coverage
Limits Required By Law – Single limits
86
Coverage
Limits Required By Law – Split limits
87
Coverage
Limits Required By US Department of State Office
of Foreign Missions
88
Coverage
Optional Single Limits
89
Coverage
Optional Single Limits - Rule 50
90
Coverage
• Uninsured Motorist Coverage Statutory
• Supplementary UM (no ATVs or
snowmobiles)
• Personal Injury Protection Coverage (Rule 9)
• Full PIP
• $200 Family Deductible (individually
owned autos)
• OBEL
• Pedestrian PIP - ATVs/Motorcycles
• Additional PIP options
91
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 Limit and Premium
Determination
92
Coverage
Physical Damage Coverage
• Physical Damage Coverage is available for
Private Passenger and Light Commercial
vehicles (under 10,000 pounds)
• 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
Coverage
Physical Damage Coverage
• Customization Buyback
• Classic autos (25 yrs or more not eligible for
Physical Damage coverage)
• Antique autos not eligible
• Premium difference for comp w/o collision
• Fleets of 10 or more of Light Commercial
vehicles(Not eligible for Physical Damage
coverage)
NOTE: If the fleet contains both Private
Passenger & Light Commercial vehicles, the
Private Passenger vehicles are eligible for
Physical Damage coverage.
94
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
(Pkg - $250, 500, 1,000)
Light Comml Vehicles (Pkg - $250, 500, 1,000, 2,500, 5,000)
Motorhomes
(Pkg - $250, 500, 1,000, 2,500, 5,000)
Church Buses
(Pkg - $250, 500, 1,000, 2,500, 5,000)
Driver Education Cars ($250, 500, 1,000, 2,500, 5,000)
95
Regulation 79 Compliance
Authorization for Inspections Forms On-Line
96
Regulation 79 Compliance
Authorization for Inspections Forms On-Line
As of Feb 2011, the Authorization for Inspection form was integrated in PASS and
will automatically generate, pre-fill & print with all PASS applications &
endorsements for which physical damage coverage is requested, using the
following information entered in PASS:
Producer Name and Address
Applicant Name and Address
Vehicle Description
Policy Number(For endorsements Only)
APN for new applications
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 must be mailed to the Plan for
processing, and the completed The Policy Change Request (Endorsement) must
be mailed to the assigned carrier.
97
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 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
Regulation 79 Compliance
Physical Damage Inspection Requirements
(NY Regulation 79)
Used and Demo Vehicles
• Inspections must be performed within 5 days,
• Present vehicle at authorized CARCO Inspection site;
See website for site location lists carcogroup.com or
call CARCO’s automated site locator;
TELESITE (888-242-1200)
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
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 5 days will cause physical damage coverages
to be suspended and such losses not paid.
100
Regulation 79 Compliance
Sample Authorization
form for cars.
Reminder : 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
Payment Options
Deposits
Deposits may be submitted as:
• Producers Check
• Applicants Certified Check
• Bank Check
• Money order
• E-Payment (Producer sweep
account or applicant credit card*)
• Credit card
• Premium Finance Draft (with
insured’s 15%)
102
Payment Options
Payment Plans
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).
•
All installments are subject to a $5 installment fee
Policy Change Requests
•
30% of estimated annual premium or Total Full Pro
Rata Premium for the remainder of the policy period,
103
whichever is less.
Payment Options
Electronic Payments E-Pay
Two forms of Electronic Payments are available:
1. Producer Sweep Account
• Uses a producers preregistered checking account to sweep the funds . This
option is available for private passenger and commercial applications.
2. Credit Cards
(Cardholders must be present and must sign the credit card signature
form. Producer must verify cardholders identity)
• Insureds can pay 25% or entire annual premium using Amex, MC or
Discover Card thru a vendor service which charges a 2 ½ % service fee to
the cardholder. The use of VISA is currently not available as an option.
• Effective April 4, 2011 the program is expanded to allow use of third party
credit cards (other than producer or insured).
• Cardholders must be present and must sign the credit card signature form.
• Producers must verify cardholders identity
• Currently, this option is only available for private passenger applications.
Producer Guide for Electronic Payment Process is available at under the Forms section o ft he Plan’s
website at https://www.aipso.com/ny
104
Effective Dates
All applications must be submitted through PASS. Endorsements
should be submitted through PASS. PASS applications and
endorsements 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. The Fax Cover page for Policy Change Requests and the
Directory of Company Fax numbers are available in the Producers
Forms Library in PASS.
105
Effective Dates
Effective Date Procedures
Endorsements not submitted through PASS and
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
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)
In Transit Apps require MV-82 ITP
Credit Card Application Authorization/Signature page
Note: Application deficiencies or performance complaints may be
applied if supporting documentation is not submitted with the
application/policy change request.
107
Cancellations
Minimum Premium
(Sections 18, 19, 20, Rules 3, 6, 7)
Insured request cancellations - short rate,
except:
• Placed in voluntary market
• Enters military
• Named insured deceased
• Auto stolen, total loss (60 day notice)
• In-transit
• Premium financed
108
Cancellations
Minimum Premium
(Sections 18, 19, 20, Rules 3, 6, 7)
Carrier cancellations (prorate); Reasons:
• 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
Cancellations
Minimum Premium
(Sections 18, 19, 20, Rules 3, 6, 7)
• Minimum premium
• $60 - Private passenger, excess coverage, non-owner
• 10% for premium financed policy not cancelled at
inception.
• Flat cancellation within 15 days of ID card issuance
• Appellate Rights
• Company and non-payment cancellations
• Ineligible Applicant Program
• Suspensions
110
Cancellations
Reinstatement with Lapse
•
•
•
•
20 day window
$25 fully earned fee
Commission is paid on the fee
Carrier may reinstate within term or issue
new annual policy
• Premium finance issues involving new
annual policy
• Reinstatement with Lapse currently only
available for Private Passenger non-fleet
policies.
111
Cancellations
Severable Cancellations
Effective August 1, 2011 Rules Sec.18.2. (5) is 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 passenger policy 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 2011.
112
Cancellations
Minimum Premium
(Sections 18, 19, 20, Rules 3, 6, 7)
• Minimum premium
• $60 - Private passenger, excess coverage, non-owner
• 10% for premium financed policy not cancelled at
inception.
• Flat cancellation within 15 days of ID card issuance
• Appellate Rights
• Company and non-payment cancellations
• Ineligible Applicant Program
• Suspensions
113
Producer Commissions and Fees
Fees: (Sec 21.C )
• $50 Maximum Service Fee per
application or per renewal(PP)
• Certified Mail
• Express Delivery
• Non- NY operator’s MVR
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
115
Performance Standards - Producer
•
•
•
•
•
•
Applications
Return commission
Policy change requests
Claims
Payments
NYPAP Safety Group Dividend Program
116
Performance Standards - Company
•
•
•
•
•
•
•
•
Issuance of original policy
Endorsements
Return premiums
Premium collection
Commission
ID cards
Claim handling & reporting requirements
Telephone requirements
117
Performance Standards - Company
•
•
•
•
•
•
•
•
Motor vehicle records
Cancellation by insurer
Renewal policies
FH-1 Certificates
Certificates of insurance
Standard insurance premium information
Public auto pool requirements
Non-renewal notice credits
118
Performance Standards - Company
• Loss information
• NYPAP Safety Group Dividend Program
• Producer notification upon change of
producer
• Claims inquiry form
• Dishonored payments
• Immediate or expedited binding procedures
• Takeout Credit Program – Producer
Ownership of Expirations
119
Overview
The End
120