On June 20, 2024, Commonwealth Automobile Reinsurers (CAR) released Bulletin 1167, which effectively resolved the disagreement between Calianos Insurance Agency and Norfolk & Dedham that we previously mentioned on June 11, 2024. See Agency Checklists’ article, “A Split Decision On Installment Payment Dispute Between The Calianos Agency & N&D.”
The bulletin discusses the issue of Assigned Risk Companies requiring payment for policy premiums after sending a third cancellation notice. CAR’s Governing Committee Review Panel has determined that this practice goes against Rule 28.C.2 of CAR’s Rules of Operation, which deals with payment plans for assigned risk carriers.
Key highlights from Bulletin 1167:
- The decision supports Calianos Agency’s position.
- All Assigned Risk Companies are instructed to stop demanding full payment following a third cancellation notice.
- This ruling also applies to any similar practices related to the MAIP installment plan.
- The ruling stands unless there are directives from the Commissioner of Insurance.
While this development vindicates the Calianos Agency’s position, it would not seem to have significant implications on billing practices within the Massachusetts assigned risk auto insurance sector. Assigned risk producers should take note of this shift in cancellation practices mandated by the the bulletin.
For more details: CAR recommends reaching out to their Residual Market Department or sending an email to maipsupport@commauto.com. A copy of the Bulletin is available with this link: Bulletin 1167.
