The Commercial Automobile Committee will be meeting on January 28th
A meeting of the Commercial Automobile Committee of CAR has been scheduled for this week. The committee will meet on Wednesday, January 28th at 11:00AM to discuss among other things whether the Commercial Automobile and Taxi/Limousine programs should be combined. According to documents made public by CAR, the following are pros and cons raised by various members of the Committee during previous discussions of this issue.
Members in favor of combining the programs site the following “Pros”:
- Risks with both Taxi/Limousine and other commercial exposure would be managed by a single carrier;
- A producer would contract with one carrier for all of its ceded business;
- The reduced number of Servicing Carriers reduces concerns regarding uniqueness of the taxi/limousine risk.
Those members in favor of keeping things as is, cites the following:
- Taxi, limousine and car service classifications require specialized underwriting to ensure proper classification and premium determination;
- Separate expense allowances are indicative of the varying complexity of the separate programs;
- Separate characteristics of the two programs such as vehicle inspection and pre-audit requirements contribute to the program’s success and may be minimized if combined with the full program;
- The small volume of taxi/limousine exposures does not justify the expense and disruption of redistribution of these risks.
CAR’s Ad Hoc Relocation Subcommittee will also be meeting on January 28th
In addition to the Commercial Automobile Committee meeting and the MAIP Steering Committee which are both scheduled for January 28th, the Ad Hoc Relocation Subcommittee will also be meeting at 225 Franklin at 2:30 PM. The committee which was established by the Governing Committee Chairman is charged with helping to help decide as to what type of future office space will best meet the needs and budget of the Commonwealth Automobile Reinsurers staff.
According to the Notice of Meeting, the Committee members will be reviewing whether CAR should extend its lease and continue in its current office space at the end of its current lease in October 2016 or whether a relocation to a suburban location will be a more viable and cost effective option for the authority. The Committee will be expected to reports on its findings at the next Governing Committee meeting on February 25th.
