Any and all Massachusetts insurance professionals interested in being appointed to a CAR Advisory Committee should note that the deadline for all requests and/or reappointments is Tuesday, December 1st. On November 20, 2015, CAR has announced a restructuring place impacting both the Compliance Audit and Operations Committees. The following is an explanation of that plan taken directly from the CAR website:
At the November 18, 2015 meeting, the Governing Committee Chair announced plans to restructure, in 2016, the Compliance Audit Committee and Operations Committee as the Compliance & Operations Committee and the Financial Audit Committee. The restructure will serve to better align the responsibilities of these Committees with industry professionals within specific disciplines, to eliminate duplicative oversight, and to provide greater collaborative opportunity.
The Compliance & Operations Committee will be responsible for the operational functions related to statistical and residual market reporting, development of procedural and technical guidelines and oversight of all data quality assurance functions. This Committee will also ensure that the Statistical Plans, the Manual of Administrative Procedures, and the Assigned Risk Company and Producer Procedures Manuals are in sync with statutes, regulations, and the CAR Rules of Operation.
The Financial Audit Committee will be responsible for the oversight of the independent review of CAR’s financial statements. The Committee will engage an independent accounting firm in accordance with CAR’s contracting policy, defining the scope of the engagement annually and considering the auditor’s findings.
Interested parties should email their written request to:
Mr. M. John Olivieri, Jr.Governing Committee Chair
c/o Ms. Natalie A. Hubley, President
Commonwealth Automobile Reinsurers
Not familiar with the CAR Advisory Committees and what they do? Here is a quick list of the major ones and their purpose. As always, its best to check directly with CAR about which committee might be the best fit for your expertise:
“The Actuarial Committee is responsible for reviewing and making determinations regarding deficit sharing, participation credits, expense allowances, quota share, and various other technical and actuarial subjects.”
“The ARP Certification Committee is responsible for addressing all issues relative to MAIP certification of Assigned Risk Producers.”
“The Budget Committee bears the responsibility of reviewing the annual operating budget as proposed by CAR’s President, and recommends approval to the Governing Committee. Note: Only Governing Committee members may serve on this committee.”
Commercial Automobile Committee
“The Commercial Automobile Committee is responsible for formulating recommendations relative to rates, manuals of classification, rules rating plans, policies, forms, and other such matters associated with ceded commercial business.”
“The Compliance Audit Committee is responsible for overseeing CAR’s Private Passenger and Commercial audit functions including statistical, underwriting, claims, SIU, and taxi compliance. CAR’s external auditor reports to this Committee and the Committee reports directly to the Governing Committee.”
Governing Committee Review Panel
“The Governing Committee Review Panel is charged with the responsibility of reviewing the appeals made by Member Companies and licensed producers aggrieved by any alleged unfair, unreasonable, or improper practice of CAR or a Member with respect to the operation of CAR.”
“The Loss Reserving Committee reviews quarterly loss development data for private passenger and commercial ceded business in order to determine the incurred but not reported loss reserves, which are used in the Member Participation Reports.”
“This MAIP Steering Committee is responsible for developing recommendations relative to issues involving the Massachusetts Automobile Insurance Plan.”
“The Market Review Committee considers marketing issues relative to CAR’s Producer/Servicing Carrier assignment and business relationships, particularly those involving Producers.”
“The Operations Committee considers matters related to CAR accounting, statistical, data processing, and procedural operations. The committee also develops procedural and technical guidelines and reviews operational compliance to the Plan, Rules, and Manual of Administrative Procedures.”
“The Personnel Committee is responsible for overseeing matters involving employee compensation, including but not limited to approval of annual salary range movement and merit increase percentages.”
** Subject to the 2016 Restructuring Plan CAR announced on November 20th
