AUTOMOBILE INSURERS BUREAU OF MASSACHUSETTS

Transcription

1 AUTOMOBILE INSURERS BUREAU OF MASSACHUSETTS SINCE 1925 October 7, 2009 Commissioner of Insurance Division of Insurance One South Station Boston, MA Re: Private Passenger Advisory Rule 20 Revision Filing - Effective Dear Commissioner: The AIB is submitting the attached rule revision filing with a proposed effective date of 1/1/2010. The AIB is currently developing new rating groups fol the physical damage coverages to replace the current rating symbols. The purpose of this filing is to provide a transition rule to enable companies to rate model year 2011 vehicles under the current rating group structure until the new AIB program is filed and approved for use, later in This filing revises Rule 20 of the AIB Private Passenger Automobile Manual, which was effecti ve 4/ Wil. m Scully Actuary Automobile Insurers Bureau of MA 101 Arch Street, Boston, Massachusetts Telephone: (617) FAX: (617) Internet:

2 Automobile Insurers Bureau of Massachusetts Private Passenger Automobile Advisory Filing for: Model Year 20 II Transiti on Factors (AlB Manual Rule 20) The AlB is developing new rating groups for the physical damage coverages to replace the current rating symbols. This transition rule is being fi led to provide model year relativity factors fo r 20 II model year vehicles that may be rated before the new rating program is available. The rule is designed to rate 20 II model year vehicles using rates fo r 20 I 0 vehicles modified by a model year rating factor. The factors are based on the current AlB advisory model year/symbol factors (effective 4/1 /2009), and are appli ed to the $500 deducti ble rates for the appropri ate coverage. The factors are as fo ll ows: Coverage 2011 Model Year Factor For new 20 II model year vehicles which have not yet been symbolled, Rul e 22 will be used to determine the symbol based on the symbol or the original cost new. Thi s filing incl udes the following replacement pages fo r the AlB Pri vate Passenger Automobile Insurance manual: Manual page 12 (R) - Rul e 20 "Model Year Rating" Manual page RS- I (R) - "Miscellaneous Rating Factors" The AlB intends to fil e new rating group definitions in 20 I 0 and the relativity facto rs provide a means of rati ng 2011 model year vehicles until that time.

3 MASSACHUSETIS PRIVATE PASSENGER AUTOMOBILE IN SURANCE MANUAL 3. Application of Discount The applicable discount applies to rates otherwise determined for each insured vehicle by coverage, limits purchased, territory, driver class, and model year and symbol prior to the app lication of the merit rating plan. Rule 20. MODEL YEAR RATING A. Model Year Defined The model year of an auto is used in raling physical damage coverage on an actual cash value basis. The model year of the auto is the year assigned by the aula manufacturer. The model year of rebuilt or structurally altered autos is determined by the model year of the chassis. B. Rating of Model Years Not Shown on Rate Pages Model Year: Refer to the the Miscellaneous Rating Factors section and apply the 2011 model year and coverage factors to the 2010 model year $500 deductible rate shown in the Rate Section to obtain the actual cash va lue premium. ir.... ~ ~.~~. ~~.~. ~~~~~. ~!=,.~~I. X ~.~~~.:.. 13.~!~r.t<?.t~~. ~! ~~ ~!'I.~~.q~.~ J3AV!1.9. f.<!~!9!.s..s.~~-'!~!1.. ~ ~~.~ pp' ly'.th~.. model year, symbol and coverage factor to the earliest model year $500 deductible rate displayed in the Rate Section to obtain the actual cash value premium.,," { Deleted, 1 a. Refer to the Miscellaneous Rating Factors section and apply the earliest model year, symbol and coverage factor to the earliest model year $500 deductible rate for the same symbol displayed in the Rate Section to obtain the actual cash value premium. b. Apply the appropriate symbol factor shown below to the premium obtained in 2.a.: Symbol Factor Symbol Factor Symbol Factor Symbol Factor {LD:.ẹ,,'e:..t"' ed:..'..:2 --' Rule 21. RESERVED FOR FUTURE USE 12.ill) Copyright, Automobile Insurers Bureau, 2009

4 MASSACHUSETTS PRIVATE PASSENGER AUTOMOBILE INSURANCE MANUAL 3. Application of Discount The applicable discount applies to rates othefwise determined for each insured vehicle by coverage, limits purchased, territory, driver class, and model year and symbol prior to the application of the merit rating plan. Rule 20. MODEL YEAR RATING A. Model Year Defined The model year of an auto is used in rating physical damage coverage on an actual cash value basis. The model year of the auto is th e year assigned by th e auto manufacturer. The model year of rebuilt or structura lly altered autos is determined by the model year of the chassis. B. Rating of Model Years Not Shown on Rate Pages and Later Model Years: Refer to the Miscellaneous Rating Factors section and apply the model year, symbol and coverage factor to the ea rliest model year $500 deductible ra te displayed in the Rate Section to obtain the actual cash value premium and Earlier Model Years: a. Refer to the Miscellaneous Rating Factors section and apply the earliest model year, symbol and coverage factor to the earliest model year $500 deductible rate tor the same symbol-displayed in the Rate Section to obta in the actual cash value premium. b. Apply th e appropriate symbol factor shown below to the premium obtained in 2.a.: Symbol Factor Symbol Factor Symbol Factor Symbol Factor Rule 21. RESERVED FOR FUTURE USE 12 Copyright, Automobile Insurers Bureau, 2009

5 MASSACHUSETTS PRIVATE PASSENGER RATING MANUAL MISCELLANEOUS RATING FACTORS RULE 16 Deductibles Deductible Factors Based on $500 Deductible Premium Coverage ~ Deductible ~2000 Deductible 100 Glass Deductible Not Applicable limited Not Applicable Deductible Charge Deductible Charge Waiver $300 $9 $1,000 $ 16 of Deductible Charges $500 $12 $2,000 $25 * Glass deductible applies to otherwise determined premium. RULE 17 Substitute Transportation $ 15 per day $30 per day $45 per day $100 per day ( 450 maximum) (~900 maximum) ( 1350 maximum) ( 3000 maximum) Private Passenger $14 $60 $146 $300 Motorcycles $45 $90 $ 167 $346 RULE 19 Discounts Discount A!;1(:!1icable Coverages Multi-Car 5.0% Parts 1, 2, 4, 5, 7, 8, 9 Annual Mileage 10% ( miles) Parts 1-8, 12 5%: miles RULE 20 - Model Year Rating Rating Factors for Model Year Rates Not Shown in the Rate Section Model Year Factors (Apply to Model Year 2010 Rates Shown in Rate Pages) : : Older Rate Year Facto rs Symbol (Apply to 2001 Model Year Rates Shown in Rate Pages) Model Year 1 ;( :; 1 1; Q I 1Q II 11 1Q 1Q 1I Symbol (Apply to 2001 Model Year Rates Shown in Rate Pages) Model Year 1 ;( :; 1 1; Q I 1Q II 11 1Q 1Q 1I , , For 1989 and prior model years, see Rule 20. RULE 30 - Porsonallnjury Protection Deductible Deductible Percentages Deductible: i1.qq gqq iiqq $1000 $2000 $4000 $5000 Named Insured 2.0% 4.0% 7.0% 14.0% 26.0% 37.0% 46.0% Named Insured & Household 2.0% 5.0% 10.0% 19.0% 34.0% 48.0% 59.0% RULE 33 Towing and L abor!i50 Qer Disablement!i100 Qer Disablement Private Passenger and Motorcycles: $8 $16 RS-1(R) Copyright. Automobile Insurers Bureau, 2009

6 MASSACHUSETTS PRIVATE PASSENGER RATING MANUAL MISCELLANEOUS RATING FACTORS RULE 46 Excess Electronic Equipment Coverage Apply a rate of $4 to each $100 of valuation. RULE 48 Original Equipment Manufacturer Parts Coverage Coverage Limited Rating Factor ( coverage is subject to a $1.00 minimum premium.) Applies to private passenger vehicles as defined in Rule 27. RS-2(R) Copyright, Automobile Insurers Bureau, 2009