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2 Massachusetts Association of Insurance Agents Annual Convention & Trade Fair November 6, 7, 8, & 9, 2014 Marriott Hotel, Copley Place, Boston, MA ASK MAIA Presented by: Donna M. McKenna MAIA VP of Communications & Registry Liaison Ask MAIA This program is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. 1

3 Registry Procedures Personal 1. Q - I have a NY dealer that issued NY State In-Transit permit to our client who purchased a car from them and then drove the car back to MA (even though financing etc. has not been approved). I've forwarded Donna McKenna's letter from the Registration Manager (Elizabeth Rizzuto) dated 10/29/10 explaining that temporary plates are not valid in MA for MA residents but the NY dealer is still insisting that the In-Transit permit is acceptable. Is there a difference between temporary plates and In-Transit permits? Registry Procedures Personal 1. A - No there is no difference. Massachusetts does not recognize MA residents driving on out of state temporary/in-transit plates issued by another state. You have the notice that Donna sent you and it mentioned a CT in-transit plate this goes for all states and please feel free to share it with your customer. I would advise the client not to drive the vehicle until it is properly registered. They should get the new Massachusetts plate before picking up the vehicle at the dealership in NY. Should your client choose to take a chance with the in-transit, he may be fine or he may not be so lucky and get pulled over or in an accident he can be cited for unregistered/uninsured, attaching plates, have the vehicle impounded and be subject to court costs fines and insurance surcharges. 2

4 Registry Procedures Personal 2. Q - An insured totaled his car 8/14. He wants to transfer his plates to a vehicle that he is purchasing from his daughter effectively in approximately 4 days. So the span of time in between the accident which resulted in a totaled car and the purchase is approximately 3 weeks. Can he use his old plates on the new vehicle or does he need to turn in his old plates and get new ones? What RMV form (s) would I use for this if it's a transfer? Registry Procedures Personal 2. A - He can transfer his registration plate, but he cannot drive the vehicle until the transfer is processed at the RMV. The seven day transfer law allows the consumer seven days once they lose possession of the old vehicle and take title to the new vehicle. Day one is when you lose possession of the old vehicle. Here is a link to an FAQ from the RMV on the seven day transfer law: New plate or a transfer of plate would require an RMV-1. 3

5 Registry Procedures Personal 3. Q - Can you direct me or help me on scooters? I have an insured that bought a 2014 TAOI Scooter, 49ccs for daughter to use a school in Florida. She tried to do something with it in Florida and was told they could not help her that it had to be done in Massachusetts. Well needless to say I tried to call the RMV, hold time is greater than 1 hour, and I can leave a call back number for a call back later...well needless to say here I am asking you. Title classifies the unit as a scooter, 1/49 cc, series/model CY50A 220lbs. Insured states she believes it just needs a sticker? Do these need to be insured? How do you go about obtaining a sticker? Any input or direction would be appreciated. Thank you. Registry Procedures Personal 3. Kathy Cormier: Here is a link to a chart that the RMV developed to determine what type of registration plate/sticker would be required: se.pdf The vehicle you listed 2014 TAOI Scooter is listed under: TAOTAO CY50A and that requires a Moped Decal. Here is a link to the MA Application for this decal: I do not know of any markets that will write coverage for a Moped in Massachusetts. Here are two search engines that you can try if coverage is needed these are E&S markets: or 4

6 Registry Procedures Personal 4. Q - One of my insureds has 2 trailers that are currently registered in Maine since he has another home up there. He has no private passenger vehicles up there but primarily keeps the trailers up there to use. My insurance carrier will not extend liability from the Mass Auto policy to the trailers?? Can this be true? Registry Procedures Personal 4. A - Liability is automatic for trailers on the MAP as long as that trailer is designed to be pulled by a private passenger auto: 6. Trailer means a vehicle designed to be pulled by a private passenger auto, motorcycle, pick-up truck, van, or similar vehicle and designed for use on public roads. This includes a farm wagon or a farm implement. Registration of that trailer is not addressed in the MAP and coverage is automatic. Registration and Insurance are two separate issues and we have to look at them as such. 5

7 Registry Procedures Personal Now that being said, the MA RMV Legal counsel has given us a determination on MA residents who register their trailers out of state and this is the response we received from the RMV s Deputy General Counsel: 1. If we are talking about plain vanilla utility or recreational vehicle trailers, owned by residents of Massachusetts the trailers must, I repeat must be registered in MA to those owners. 2. If we are talking about semi-trailers that are owned by a Massachusetts business and are being pulled by a commercially-plated tractor owned or leased by that business, those trailers must also be registered in MA. However, If the tractor is registered with an "apportioned" plate, the semi-trailer may be registered in Maine (even if owned by a Massachusetts business) or in any other state that is part of the International Registration Plan (IRP). The reason for the apparent waiver from the requirement of registration in MA is complicated and is rooted in the origin of the IRP. Registry Procedures Personal 3. The IRP is an agreement between the 48 contiguous states, the District of Columbia, and 10 Canadian provinces. To encourage the fullest use of the highway system, the IRP authorizes apportioned registration of commercial vehicles and requires member jurisdictions to grant vehicle registration reciprocity to any vehicle registered in a vehicle's home (base) jurisdiction. Apportioned registration allows commercial vehicle operators to pay a registration fee to a base jurisdiction, which then allocates and distributes portions of the fee to other jurisdictions in proportion to the miles driven by the vehicle in each jurisdiction. The IRP describes in detail the registration and apportionment rules to which IRP members have agreed to adhere with respect to trucks and other apportionable vehicles. The Plan is administered by a Board of Directors and a corporation known as the International Registration Plan, Inc. The Plan provides a dispute resolution process to resolve disputes among its members. 4. Massachusetts is used by numerous businesses as their base registration. The registration fee for each tractor (power unit) they register is apportioned among the states/jurisdictions the company intends its vehicle to travel into based on the mileage it anticipates traveling in those states. Each of those jurisdictions is identified on a cab card maintained on the vehicle that law enforcement officers can examine. If an interstate carrier has to travel into a state not listed on its cab card it must buy a Trip Permit from that jurisdiction that allows it to travel in that jurisdiction for a limited period. 6

8 Registry Procedures Personal 5. Semi-trailers are not apportionable vehicles. Nevertheless, a semi-trailer that is attached to a vehicle (tractor) with an apportioned registration cannot, under the current IRP agreement in effect in all jurisdictions (including Massachusetts) be required to be registered in the same state or jurisdiction where the tractor is registered as long as the semi-trailer is properly registered in a member jurisdiction. Maine is a member jurisdiction. 6. Any attempt to require a Massachusetts company to register its semi-trailers in Massachusetts that are currently registered in Maine and are pulled by tractors registered with apportioned plates would be in contravention of the terms of the IRP. At least two recent attempts have been made by other states to challenge the practice of registering semitrailers in states where semi-trailer registration fees are less than in the states where the tractors are registered on an apportioned basis. Both of those efforts failed. Registry Procedures Personal I could see the company not wanting to provide physical damage coverage, but liability is automatic, assuming that it is a personal auto policy. A BAP is a whole other ball game. 7

9 Registry Procedures Personal 5. Q - have a client that has a 15 year old daughter who lives with her Grandmother in Vermont where she attends school. She has just obtained a Learner's Driving Permit from the State of Vermont and has driven the Grandmother s car. I have her family, Mother and Father, insured here in Massachusetts. ( Not the Grandmother) I Googled Can you drive in Massachusetts with a Vermont Lerner s Permit? The response was Yes you can A person who is sixteen years of age or over and has complied fully with the laws of such state is granted similar privileges of operation in the Commonwealth of Massachusetts The daughter is only 15, so does that rule her out? I spoke to an Underwriter at the company and he that she would not be covered on the policy because she is only so I am confused. Registry Procedures Personal My questions pertain to two items. One is the legality of her driving in Mass. the other is would the Auto Insurance policy respond with full coverage s if their were to be an accident. 1. When she comes home for the summer can she drive in Massachusetts with her parents or another over 21 years of age with a valid Mass. Drivers License while having a Vermont Lerner s Permit? Would the Auto Policy cover her? 2. Can she drive one of her parents cars when the parents visit her in Vermont? Would the Auto Policy Cover her? 3. When she gets her full Vermont Drivers License at age 16, next April, will she be allowed to drive in Mass. alone and will the policy cover her. 8

10 Registry Procedures Personal 5. A - An out-of-state learner s permit only works if the child is the minimum age for getting a permit in MA which is 16. Here is what the driver s manual says: Who is Eligible for a Massachusetts License? Anyone who is a Massachusetts resident, is at least 16 years old, and has not had a driver's license or the right to operate revoked may apply to begin the process of obtaining a Class D or Class M License at any full-service RMV Branch (see Appendix C for a list of locations). Age Requirement No person under the age of 16 may drive in Massachusetts. This is true even if you have a driver's license (or learner's permit) issued in a state or U.S. territory or another country that allows operation of a motor vehicle by a person less than 16 years of age. Registry Procedures Personal To apply for a Class D (passenger vehicle) or a Class M (motorcycle) learner's permit, you must be at least 16. You can obtain a learner's permit at age 16, but you may not receive a Class D or a Class M driver's license until you are at least 16 1/2 and have had your permit in good standing for six consecutive months and have completed a driver education training program approved by the Registrar. Note: You must be at least 18 years old to apply for a Commercial Driver's License (Class A, B, or C). As far as the insurance is concerned, I can t see any exclusion for illegal acts in the policy EXCEPT for PIP when anyone contributes to his or her injury by operating an auto under the influence of alcohol, marijuana, or a narcotic drug But, I would NEVER suggest that your client let the daughter drive on the permit when it is illegal to do so. 9

11 Registry Procedures Personal To apply for a Class D (passenger vehicle) or a Class M (motorcycle) learner's permit, you must be at least 16. You can obtain a learner's permit at age 16, but you may not receive a Class D or a Class M driver's license until you are at least 16 1/2 and have had your permit in good standing for six consecutive months and have completed a driver education training program approved by the Registrar. Note: You must be at least 18 years old to apply for a Commercial Driver's License (Class A, B, or C). As far as the insurance is concerned, I can t see any exclusion for illegal acts in the policy EXCEPT for PIP when anyone contributes to his or her injury by operating an auto under the influence of alcohol, marijuana, or a narcotic drug But, I would NEVER suggest that your client let the daughter drive on the permit when it is illegal to do so. Registry Procedures Personal 6. Q - We have an insured with a Florida license he has a home there and here he wants to register his camper in Mass. since he uses it to hunt & fish up here, not Florida, is this possible. I know the company will insure just the camper IF the registry will let him register it so can he get a camper plate in Mass w/out having his Mass license? 10

12 6. A - As long as a person has a valid license (not just MA), a SS# or a valid MA ID, he/she may register a vehicle in Massachusetts. When the policy comes up the next year, the insurer will likely want to non-renew because there is no MA license; however, they will make an exception for a snowbird, someone in school or the military, or a person with a foreign license who can prove that he/she has gone back home and returned since foreign licenses (from those countries that were parties to the roads convention treaty) is only good for one year from arrival in the U.S. 7. Q - Is there a law which forbids drivers (personal and commercial) from using cell phones while driving? If so, can you link me to the law so I can print a copy? 11

13 7. A - There are actually statutes in MA. The first one prohibits the use of a mobile telephone, hands free mobile telephone or other mobile electronic device while operating a vehicle or vessel used in public transportation. Here is that statute: CHAPTER 90. MOTOR VEHICLES AND AIRCRAFT. Section 12A. (a) No operator of a vehicle or vessel used in public transportation, including a train, passenger bus, school bus or other vehicle used to transport pupils, passenger ferry boat, water shuttle or other equipment used in public transportation owned by, or operated under the authority of the Massachusetts Bay Transportation Authority, the Woods Hole, Martha's Vineyard and Nantucket Steamship Authority, Massachusetts Port Authority, or the Massachusetts Department of Transportation, shall use a mobile telephone, hands free mobile telephone or other mobile electronic device while operating such vehicle or vessel; provided, however that this section shall not apply to the operator of a vehicle or vessel used in public transportation using a mobile telephone, hands free mobile telephone or mobile electronic device in the performance of the operator's official duties; provided, however, that in order for the use of any such device to be made "in the performance of the operator's official duties," such use must have been made in conformance with applicable written guidelines issued by a public entity listed in this paragraph relative to circumstances when operators are permitted to use said devices in the performance of their official duties or pursuant to directives from federal authorities having regulatory jurisdiction over such public entity's operations. 12

14 Whoever violates this section shall be punished by a fine of $500. A violation of this section shall not be a moving violation for purposes of the safe driver insurance plan under section 113B of chapter 175. (b) It shall be an affirmative defense for an operator under this section to produce evidence that the use of a mobile telephone that is the basis of the alleged violation was in the case of an emergency. For the purpose of this paragraph, an emergency shall mean that the operator needed to communicate with another to report any of the following: (1) that the vehicle or vessel was disabled; (2) that medical attention or assistance was required on the vehicle or vessel; (3) that police intervention, fire department or other emergency services was necessary for the personal safety of a passenger or to otherwise ensure the safety of the passengers; or (4) that a disabled vehicle or an accident was present on a roadway. The second one prohibits the use of a mobile telephone, hands free mobile telephone or mobile electronic device by persons under 18 years of age. Here is that statute: CHAPTER 90. MOTOR VEHICLES AND AIRCRAFT. Section 8M. No person under 18 years of age shall use a mobile telephone, hands free mobile telephone or mobile electronic device while operating a motor vehicle on any public way. For the purposes of this section, a junior operator shall not be considered to be operating a motor vehicle if the vehicle is stationary and not located in a part of the public way intended for travel. A junior operator who violates the preceding paragraph shall be punished by a fine of $100 and shall have his license or permit suspended for 60 days for a first offense and shall not be eligible for license reinstatement until he also completes a program 13

15 selected by the registrar that encourages attitudinal changes in young drivers; for a second offense by a fine of $250 and shall have his license or permit suspended for 180 days; and for a third or subsequent offense by a fine of $500 and shall have his license or permit suspended for 1 year. It shall be an affirmative defense for a junior operator to produce evidence that the use of a mobile telephone, hands free mobile telephone or mobile electronic device that is the basis of the alleged violation was for emergency purposes. For the purpose of this section, an emergency shall mean that the junior operator used the hands free mobile telephone or mobile electronic device to communicate with another to report any of the following: (i) that the motor vehicle was disabled; (ii) that medical attention or assistance was required; (iii) that police intervention, fire department or other emergency service was necessary for the personal safety of the operator or a passenger; or (iv) that a disabled vehicle or an accident was present in the public way. A penalty under this subsection shall not be a surchargeable offense under section 113B of chapter 175. And then there is a federal regulation that applies to drivers of commercial motor vehicles (meeting the FMCSA definition) which says: Part 392 DRIVING OF COMMERCIAL MOTOR VEHICLES : Using a hand-held mobile telephone. (a)(1) No driver shall use a hand-held mobile telephone while driving a CMV. (2) No motor carrier shall allow or require its drivers to use a handheld mobile telephone while driving a CMV. (b) Definitions. For the purpose of this section only, driving means operating a commercial motor vehicle on a highway, including while temporarily stationary because of traffic, a traffic control device, or other momentary delays. Driving does not include operating a commercial motor vehicle when the driver has moved the vehicle to the side of, or off, a highway and has halted in a location where the vehicle can safely remain stationary. 14

16 (c) Emergency exception. Using a hand-held mobile telephone is permissible by drivers of a CMV when necessary to communicate with law enforcement officials or other emergency services. Citation: [76 FR 75487, Dec. 2, 2011] Lastly, a ban on use of handheld cell phone or texting by anyone driving in Vermont went into effect on October 1, First offenders will see fines of up to $200 but no points unless the violation occurs in a work zone (two points). Subsequent violations can bring penalties of $250 to $ Q - Is there a problem with us running MVR's every year for our clients who have employees on their business autos? I thought I remembered something about privacy issues and that we could not do it. 15

17 8. A - Providing a printout of the UMI-9 screen to an employer or potential employer is a violation of your access to RMV information. That doesn t mean an employer or prospective employer can t get driving records. They can from the official source of records, which is the RMV. Your access to RMV information is intended for motor vehicle insurance purposes defined as rating, underwriting, claims investigation and law enforcement. Providing a record to an employer or potential employer is none of those things. Industry personnel who misuse RMV information may be punished by a fine of up to $1000 per offense and/or imprisonment for up to one year in a House of Correction. My advice to a client who employs drivers is to request applicants to provide a copy of their driving record at the interview. After all, isn t that kind of like their resume? You can purchase driving records online. An unattested record is $6 and may be printed online. A true and attested record is $20 and can be ordered online but the actual record is mailed to the license holder. 16

18 9. Q - I just had my first UBER\LYFT inquiry. I read your handy dandy March tech talk newsletter and I spoke to my underwriter. Insured definitely will need a BAP. My question is, will he also need a livery plate\reg? Who knows the answer to this? 9. A The word we re getting now from the RMV is that Uber vehicles will be permitted by the RMV to have private passenger plates just like Zip Car participants. 17

19 10. Q - I just recently had a client return SR plates and mentioned that there is some sort of form they need to fill out to get money back from the Registry. I haven t heard of this before and I am unable to find any information on the Registry site. It looks like the SR plates are not pro-rated, so I didn t think there was any rebate to the client on these. Have you ever heard of this? I think it might be possible the client is mistaken this for excise tax? 10. A - The Snow Removal Plates are not pro-rated, but there are some refund/rebate options: Snow Removal Plates Snow Removal plates are part of the Commercial Plate series and for this reason vehicles registered with Snow Removal plates can be used in warm weather months and may legally operate on the ways of the commonwealth and haul other commodities (sand, gravel, rock, coal, etc.) during the period of registration. A. Purpose of Snow Removal Plates: These customers currently use Commercial Normal plates on their vehicles. However, Commercial plates expire in December, causing many snow plow customers to need three plate transactions: 1. Obtain new Commercial plates in the fall to prepare for the upcoming snow season 2. Renew the plates in January 3. Cancel the plates in the spring after the snow season has ended 18

20 2. Renew the plates in January 3. Cancel the plates in the spring after the snow season has ended To eliminate the need to process three transactions, Snow Removal plates will be valid for one year (regardless of the vehicle weight), with an expiration date of September 30. B. Plate Type: Commercial Normal (Plate Type: CON) Snow Removal plates are part of the Commercial Normal plate series and have the new prefix SR (snow removal). The plate number will consist of SR1000-SR9999. C. Eligibility: Any customer eligible for a Commercial plate is eligible for a Snow Removal plate. D. Plate Fees: Snow Removal plates (all weights) are charged $20 per 1,000 lbs. The fee for Snow Remove Plates will not be pro-rated E. Expiration: Snow Removal plates expire annually on September 30. Snow Removal Plates vs. Commercial Plates If you currently keep your vehicle registered year-round, there is no additional benefit for obtaining a Snow Removal plate. The Snow Removal plate is only intended for vehicles for which registrations are cancelled for the summer months. Please understand if you decide to obtain a Snow Removal plate even though you currently maintain a year-round commercial registration, you will pay additional fees to obtain a Snow Removal plate. These fees are not prorated. Rebate Process If you cancel your plates within 10 day of the registration effective date, you are entitled to a full refund. Snow Removal plates used for six months or less, are entitled to a partial refund for 1/2 the amount in excess of $ The six-month clock begins the first day of the month following the month in which the vehicle is registered. For example, plates registered on November 14th. Must be cancelled by May 31st. to be eligible for a refund. To apply for a rebate on he registration, complete a Refund/Rebate Application. Link to refund/rebate application: 19

21 11. Q - A. If a client has a bobcat skid steer at a store parking lot for plowing that is not registered and he hits a parked car or person or building, it is covered under the general liability policy correct? The registry said he couldn t register it because it doesn t have a steering wheel so it can t be added to an auto policy so it would just be general liability right? B. He also has a backhoe at another parking lot location for plowing that is going to register but he bought it at an auction in NH and it doesn t have a title or anything it is 15,000lbs. So he contacted the owner of the backhoe and that person never titled it or registered it either but does have the certificate of origin from when he bought it. So our client said his lawyer said if he had the certificate of origin from the original owner and a bill of sale he could register it. Is this correct? Second part of this question is while he is using it in the store parking lot to plow if he hits a vehicle or building or person is that liability covered under his general liability policy? Or does he have to have it registered and the liability for one of those type losses be automobile? C. He also bought a 24,000 lb. flatbed trailer at an auction in NH and it didn t have a title or anything just a bill of sale, so of course the registry wouldn t register it. The registry said he had to bring the trailer back to the auction house and they had to register it in NH and get the Vin# cleared through the state police then he could bring the NH registration and bill of sale and get it registered here. The auction house had delivered it to our insured s premises w/their dealer plate. Now he has to bring it back to the auction house in NH. 20

22 He wants to know if he can put one of his other trailer plates on it to bring it back to NH. He said his lawyer said he had a grace period of 2 weeks that he could drive it around by putting one of his other trailer plates on it and be insured and not get in trouble. Is this accurate? 11. A - Donna McKenna: According to my contact at the RMV, a bobcat (skid steer) can be registered with commercial plates or snow plow plates if it s used for plowing. In fact, if it s used in a parking lot where the public has a right of access, it should be registered. Parking lots are really not considered private property. Irene Morrill: The 2004, 2007, 2013 CGL; 2006, 2010, 2010 BOP and the 2006, 2010 and 2013 Bap states that the definition of auto is: Auto" means: a. A land motor vehicle, trailer or semitrailer designed for travel on public roads, including any attached machinery or equipment; or 21

23 b. Any other land vehicle that is subject to a compulsory or financial responsibility law or other motor vehicle insurance law in the state where it is licensed or principally garaged. However, "auto" does not include "mobile equipment". SO According to RMV it IS subject to MVR thus financial responsibility and is NOT mobile equipment but is auto when doing this so BAP is needed the proper symbol is Mobile Equipment Subject To Compulsory Or Financial Responsibility Or Other Motor Vehicle Insurance Law Only Only those "autos" that are land vehicles and that would qualify under the definition of "mobile equipment" under this policy if they were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where they are licensed or principally garaged. 22

24 B. Donna McKenna: I m going to have to check on this one. Is the owner from NH and has it always been in NH? If it has always been in NH, even though it was never registered, I believe it should have been titled. The NH title requires vehicles under 15 years of age to be titled. If the owner was the original purchaser, he may be able to title it if need be and then sign the title over to your client. Again, a vehicle used for plowing in a parking lot to which the public has a right of access should be registered and insured. Irene: Same answer for me too C. Donna McKenna: There is NO two week grace period. If he traded or sold his old tractor and bought this as a replacement, he MIGHT have been able to use the seven day law to attach the trailer plate for the vehicle he sold or traded in BUT, since he does not have the title to the vehicle, it would be illegal to attach his or anybody else s trailer plate. How old is the flatbed? Is it over 15 years? Was it ever registered by the prior owner? Unless you can show the paper trail of ownership for this trailer and prove that it doesn t need a title, your client is going to have to try to track down the proper paperwork. I ll defer to Irene for answers to the insurance part of your questions. Irene Morrill: A trailer is an auto if it is owned which it appears to be it MUST be on a BAP if the load capacity is over 2000 lbs. a newly acquired auto is ONLY covered for 30 days from date of acquisition (this does NOT mean registration) and then ONLY for THOSE coverages which currently apply to all owned vehicles 23

25 Personal Auto 12. Q - What are the minimum requirements for acceptability of 2a forms and policy release/cancellations. We sometimes get some very sloppy documents from other carriers/agents with vehicles missing, not other carrier or agent information on them, handwritten, etc. I have instructed my staff not to honor some of these. What are the guidelines? Personal Auto 12. A The Division of Insurance issued a bulletin on what is acceptable for a Transfer of Insurer. Here is the link to the actual bulletin: pdf The guts of the bulletin say the form must include: The producer of record for the new policy must notify the prior producer of record, if known, or the prior insurer of the transfer of coverage as soon as possible. Prior producers of record must accept the notices of transfer or other forms of insurance verification from insureds, insurers or producers of record for the new policies, provided the notices meet at least the following standards: (1) The notice must be signed by the producer of record for the new policy or, it must be on the company s letterhead, if it is issued by the new insurer; and (2) The notice must bear the registry stamp of the new insurer. The stamp may be in electronic format. 24

26 Personal Auto Producers must accept these notices regardless of whether they are generated in hard copy or in electronic format. They must forward such notices to the prior insurer as soon as possible so that consumers rights are not affected negatively. Producers also are expected to assist their customers to correct any perceived inaccurate information on a notice of transfer rather than reject these notices automatically. About LPRs for ANY type of policy technically it is the losing agent s responsibility to complete the LPR as it is THEIR policy being cancelled. I was taught and also agree with and tell other agents that the stealing agent..since THEY HAVE THE CLIENT IN FRONT OF THEM (more or less) should be professional and complete the LPR to the best of their ability 1. It shows the client that they are service oriented 2. With any good luck it keeps the OLD agent from having to contact the customer. Personal Auto I suggest they complete as much as possible and send it to the losing agent with the dear john letter identifying what carrier has now taken over coverage and on what date. If they complete this and send it to agent then it expedites the cancellation (flat or otherwise) of the old policy and keeps client from getting TWO bills. If your agency slows up the process because it was completed perfectly (which again is NOT the stealing agent s responsibility) then it looks like they are good to get rid of an agency that doesn t want to service them. As long as they have signed it that is the important part We used to try to contact them and if we couldn t we would send a letter to the client saying we were sorry to lose the business and would love another chance showing that they have not burned their bridges behind them and that policy would be cancelled and/or non-renewed on such and such a date. Of course, that was before competitive auto and direct writers who cancel policies based on quotes but if an LPR has been signed then that is more thorough. 25

27 Personal Auto 13. Q - What if an insured while on vacation rents a car and buys the rental insurance then gets into an at fault accident - does having the rental insurance keep the surcharge off the insured's MAP? Personal Auto 13. A - The answer to your question is the dreaded it depends. Each rental company has their own waiver form, and the language varies from rental company to rental company. Some absolve the driver of all expenses for repair, others cover just the deductible. Your insured should read the waiver to see what exactly it provides. I ve seen situations where the renter bought the waiver thinking there would be no surcharge if the car was damaged, and then the rental company s insurer turned around and subrogated against the renter s insurance company. I wish there was a pat answer, but there just is not. 26

28 Personal Auto 14. Q - Will Part 6 Medical Payments pay medical expenses for injuries sustained in an accident while occupying a motorcycle? My insured bought $5,000 med pay on his motorcycle policy and the company claims they do not pay medical bills for injuries sustained while riding a motorcycle. Personal Auto 14. A - There is no exclusion under Medical Payments for someone on a motorcycle. What the company doesn t pay and it is spelled out in the policy is PIP. Here is the language from the policy: We will not pay PIP benefits to or for: 1. Anyone who, at the time of the accident, was operating or occupying a motorcycle, any motor vehicle not subject to motor vehicle registration, or a motorized bicycle, including a moped. 2. Anyone who contributed to his or her injury by operating an auto (a) while under the influence of alcohol, marijuana, or a narcotic drug, (b) while committing a felony or seeking to avoid arrest by a police officer, or (c) with the specific intent of causing injury to himself, herself or others 3. Anyone who is entitled to benefits under any workers' compensation law for the same injury. 27

29 Personal Auto 14. A - There is no exclusion under Medical Payments for someone on a motorcycle. What the company doesn t pay and it is spelled out in the policy is PIP. Here is the language from the policy: We will not pay PIP benefits to or for: 1. Anyone who, at the time of the accident, was operating or occupying a motorcycle, any motor vehicle not subject to motor vehicle registration, or a motorized bicycle, including a moped. 2. Anyone who contributed to his or her injury by operating an auto (a) while under the influence of alcohol, marijuana, or a narcotic drug, (b) while committing a felony or seeking to avoid arrest by a police officer, or (c) with the specific intent of causing injury to himself, herself or others 3. Anyone who is entitled to benefits under any workers' compensation law for the same injury. I would also suggest that someone who owns a motorcycle buy Med Pay because it pays medical and funeral expenses. Personal Auto 15. Q I have had a lot of customers ask me about the DWI Alcohol Program Surcharge. They ask me why this is a surchargeable offense if the person is found not guilty or not convicted? Also, is there any way that tis surcharge can be removed? 28

30 Personal Auto 15. A - When someone is charged with OUI and has the charge continued without a finding (CWOF), they are not convicted of OUI, but are actually receiving what s commonly known as the first offenders program. I ve included a list of major moving violations (5 point surcharge offenses) from the Merit Rating regulation below: MAJOR TRAFFIC VIOLATIONS Driving to Endanger or Reckless Driving M.G.L. c. 90, 24 Leaving Scene of Accident after Injuring a Person M.G.L. c. 90, 24 Leaving Scene of Accident after Injuring Property M.G.L. c. 90, 24 Leaving Scene of Personal Injury and Death M.G.L. c. 90, 24 Liquor and Narcotics, operating under the influence of (including assignment to a driver alcohol education program or controlled substance treatment or rehabilitation program under M.G.L. c. 90, 24) M.G.L. c. 90, 24 Personal Auto In answer to your question, there is no way to remove the surcharge. The good thing, if there IS a good thing, is that since the person was not convicted of OUI, he/she is STILL eligible to purchase physical damage coverage and is not subject to the extra-risk rating rule. 29

31 Personal Auto 16. Q Do you know if a newly licensed driver has a certain timeframe they must be added to an insurance policy? We are having this discussion at the agency and though we d settle it by asking you. Personal Auto 16. A A new driver should be added to the policy as soon as he/she is licensed. Lots of Driver Education teachers will tell the students that they do not have to be listed for 60 days. That is just not true. There is something in the Collision/Limited Collision coverage parts that says: You must notify us within 60 days after a person who will operate your auto becomes a household member, if that person was not a household member on the effective date of your policy. In the same manner, you must notify us if a household member, who will operate your auto, becomes a licensed operator. The does NOT mean you get 60 days of FREE insurance. And since this language appears ONLY in the Collision parts, what happens with all of the other coverages? 30

32 Commercial Auto 17. Q - Here s the issue: Commercial client (that has no commercial auto policy) called me to certify a trailer registration that is in the name of the company. [They will be donating the use of the trailer to provided free food, water etc. to first responders, such as on duty police.] How does one certify a registration, when there is no policy? Commercial Auto 17. A - Irene Morrill: If anyone can answer your question, it will be Donna McKenna, VP Communications Donna McKenna: Can you issue a BAP for a trailer? I know you have to list them if they re over a certain weight and pay a premium for them. Otherwise, I have no clue how they d get a stamp. Irene Morrill: If the load capacity of the trailer is over 2000 lbs... liability is not free... so there would be a premium... I assume it would have to be ceded...would CAR take it? Donna McKenna to Agent: I m checking with CAR to see if a policy on JUST the trailer could be written through CAR. I ll get back to you as soon as I hear from them. What s the GVWR of the trailer (vehicle plus load)? 31

33 Commercial Auto Donna McKenna to CAR: I have an agent who has a commercial client that has purchased a trailer in the name of the corporation. The corporation does not have an auto policy, but it plans to provide free food, water, etc. for first responders (fire, police, etc.) when they are on duty. Is a trailer only owned by a corporation eligible for a BAP through CAR? I didn t see anything in my cursory look at the rules that required motive power. CAR: The answer is yes. The trailer is required to be registered and have a plate so it can be written on a commercial auto policy (TTT). Commercial Auto 18. Q I am drawing a complete blank if someone is driving an employer-owned vehicle and has an atfault accident or moving violation, they the driver get a surcharge notice and would it show on the driver s personal policy? 32

34 Commercial Auto 18. A - If you have an at-fault accident in a commercially-insured, you will not get a surcharge from the state. Some of the new direct writers do initiate their own surcharge for an at-fault accident in a commercial vehicle, but those points assigned are not on the UMI-9 screen from the Merit Rating Board. Also, some of our traditional carriers also use known at-fault accidents in a commercial vehicle as part of their rate tiering process. Moving violations in commercial vehicles WILL be recorded on your driving record, and you will receive points for them. Also, if you are stopped in a commercial vehicle for an equipment violation, the officer has the option of ticketing the owner, the operator, or both. Again, those violations will appear on your driving record and will be surcharged. Commercial Auto 19. Q Does the liability extend from my commercial auto policy to cover when the insured vehicle is towing my personal boat trailer? 33

35 Commercial Auto 19. A Irene Morrill: If the BAP is in your name and the trailer is in your name I don t care whether it is personal or not the BAP only provides liability coverage for free to owned trailers: C. Certain Trailers, Mobile Equipment And Temporary Substitute Autos If Liability Coverage is provided by this coverage form, the following types of vehicles are also covered "autos" for Liability Coverage: 1. "Trailers" with a load capacity of 2,000 pounds or less designed primarily for travel on public roads. Commercial Auto If the BAP is NOT in the same NAME as the trailer owner registration then when it is attached it would be covered. 7 Specifically Only those autos described in Item Three of the Described Declarations for which a premium charges is shown Autos (and for Liability Coverage any trailers you don t know while attached to any power unit described in Item Three.) 34

36 Commercial Auto 20. Q Where does the liability coverage come from for a repair shop owner who gets into an accident while driving a customer s vehicle with the customer s plate on it, not a repair plate? Would it be non-owned coverage? Commercial Auto 20. A Irene Morrill: Neither the BAP nor the MAP of the customer sees the garage mechanic as an insured...and so not liability for negligence BI/PD to others for that employee or the garage and "no benefit to bailee" so that if customer car is damaged...map/bap would pay but would subrogate The business needs symbol (1) - any auto or symbol (9) nonowned coverage for auto liability to cover the garage and CA employees as insureds so that the employee can be covered when using a customer auto in the "auto business" 35

37 Commercial Auto 20. A Irene Morrill: Neither the BAP nor the MAP of the customer sees the garage mechanic as an insured...and so not liability for negligence BI/PD to others for that employee or the garage and "no benefit to bailee" so that if customer car is damaged...map/bap would pay but would subrogate The business needs symbol (1) - any auto or symbol (9) nonowned coverage for auto liability to cover the garage and CA employees as insureds so that the employee can be covered when using a customer auto in the "auto business" Two of the most popular features on MAIA s website massagent.com are Ask MAIA and Question of the Day If you have a question, visit massagent.com and ask away. You will receive a personal response via from one of our staff members. If you don t have a specific question visit Question of the Day and view the questions and answers submitted by your colleagues. You won t be sorry you did! 36

38 Thanks for Attending! Massachusetts Association of Insurance Agents Annual Convention & Trade Fair November 6, 7, 8, & 9, 2014 Marriott Hotel, Copley Place, Boston, MA Remember, we are just a phone call or away! You may reach me by phone at or or you may at dmckenna@massagent.com 37