The Commissioner of Insurance has disapproved for the fourth and probably final time a change to the Massachusetts Auto Insurance Plan (MAIP) that would have allowed producers to be paid commissions on policies voluntary written under the take-out rules of the MAIP. The focus of producers looking to maintain their property interests in such policies now shifts to the Legislature where a bill is pending to overrule the Commissioner’s decision. Under the rules of the MAIP, after April 1, 2011, assigned risk carriers can offer to write assigned risk policies on a voluntary basis. If the producer of record and the assigned risk carrier do not have an agency contract the assigned risk carrier does not have any further obligation to pay commissions on the policy that is being written voluntarily.
If you would like to learn more or have any questions or concerns on how this bill may affect your Massachusetts insurance agency or would otherwise like to discuss any other potential legal issues please contact Owen Gallagher on his direct line at 617.598.3801 or by sending him an email here.