211 CMR: DIVISION OF INSURANCE 887211 CMR 134.00: SAFE DRIVER ... - MIT

211 CMR: DIVISION OF INSURANCE

887211 CMR 134.00: SAFE DRIVER INSURANCE PLAN

Section

134.01: Authority 134.02: Purpose, Scope and Responsibility 134.03: Definitions 134.04: Vehicles, Policies, Accidents, and Traffic Law Violations Subject to the Safe Driver Insurance

Plan 134.05: Notification of At Fault Accidents 134.06: Notification of A Claim Under Comprehensive Coverage 134.07: Notice Following Traffic Law Violations 134.08: Operator Information 134.09: Acquisition of Surcharge Information 134.10: Posting of Surchargeable Incidents 134.11: Computation of Operator SDIP Step 134.12: Application of Operator SDIP Step 134.13: Earned Premium Not Paid 134.14: Reporting of Information 134.15: Schedule of Surcharge Points 134.16: Merit Rating Board Liaison 134.17: Industry Advisory Committee 134.18: Manuals of Administrative Procedures 134.19: Penalties 134.20: Severability Appendix A: Traffic Law Violations

134.01: Authority

211 CMR 134.00 is promulgated in accordance with the authority granted to the Commissioner of Insurance under M.G.L. c. 175, ? 113B as amended by St. 1988, c. 273, ? 38, and as further amended by St. 1990, c. 171.

134.02: Purpose, Scope and Responsibility

(1) Purpose and Scope. 211 CMR 134.00 incorporates and merges the provisions of 1990 through 1996 Safe Driver Insurance Plans, previously codified at: 211 CMR 125.00; 211 CMR 126.00; 211 CMR 127.00; 211 CMR 128.00; 211 CMR 130.00; 211 CMR 132.00; 211 CMR 134.00. 211 CMR 134.00, as revised herein, is hereinafter referred to as the Safe Driver Insurance Plan and is promulgated to implement the Safe Driver Insurance Plan required by M.G.L. c. 175, ? 113B. The Safe Driver Insurance Plan shall be used by all Insurers; it shall apply to all policies effective on January 1, 1990 and subsequent. Provisions of the Safe Driver Insurance Plans that apply in particular ways to certain years only are specified.

(2) Responsibilities of the Merit Rating Board. The Merit Rating Board is the only authorized source of and shall bear sole responsibility for the reporting of SDIP Information in response to requests for SDIP Information.

134.03: Definitions

As used in 211 CMR 134.00, the following words shall mean:

At Fault Accident. an accident involving a vehicle subject to the Safe Driver Insurance Plan wherein the Involved Operator was more than 50% at fault, as determined by the application of the Standards of Fault of the Board of Appeal.

Board of Appeal. the Board of Appeal on Motor Vehicle Liability Policies and Bonds established pursuant to M.G.L. c. 26, ? 8A.

Bodily Injury Coverage. the insurance coverage designated as such in a Massachusetts automobile insurance policy.

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134.03: continued

Collision Coverage. the insurance coverage designated as such in a Massachusetts automobile insurance policy.

Commissioner. the Commissioner of Insurance appointed pursuant to M.G.L. c. 26, ? 6.

Comprehensive Coverage. the insurance coverage designated as such in a Massachusetts automobile insurance policy.

Coverage Selections Page. the coverage selections page of a Massachusetts automobile insurance policy, or a replacement coverage selections page.

Credit Points. one credit point is earned by a licensed operator for each Incident-Free Year within the Policy Experience Period.

for policies subject to the 1990 and 1991 SDIP: Credit points: one credit point is earned by a Massachusetts licensed operator for each Incident-Free Year within the Policy Experience Period.

Designated Statistical Agent. the rating organization or other agency designated by the Commissioner as the statistical agent for the Division of Insurance pursuant to M.G.L. c. 175A, ? 15(a).

Incident-Free Year. an Incident-Free Year is any of the series of one year periods immediately preceding the Policy Effective Date and within the Experience Period of the policy for which the licensed operator had no Surchargeable Incidents.

(a) for policies subject to the 1991 SDIP: Incident-Free Year: an incident-free year is any of the series of one year periods immediately preceding the Policy Effective Date and within the Experience Period of the policy for which the operator had no Surchargeable Incidents. (b) for policies subject to the 1990 SDIP: Incident-Free Year: an incident-free year is any of the series of one year periods immediately preceding the Policy Effective Date and within the Experience Period of the policy for which the operator had no Surchargeable Incidents and for which the operator had a valid Massachusetts Driver's License.

Insurer. any corporation, association, partnership, group or individual engaged as a principal authorized to write motor vehicle insurance in the Commonwealth.

Involved Operator. any person determined to have been operating a vehicle subject to the Safe Driver Insurance Plan at the time of, and involved in, an accident subject to the Safe Driver Insurance Plan, or any person having a Traffic Law Violation subject to the Safe Driver Insurance Plan, as specified by 211 CMR 134.04.

Limited Collision Coverage. the insurance coverage designated as such in a Massachusetts automobile insurance policy.

Listed Operator. the Policyholder and any person listed on the new or renewal application for the Policy covering one or more vehicles subject to the Safe Driver Insurance Plan.

Manual of Administrative Procedures for Policy Inquiries. the Manual of Administrative Procedures prepared by the Merit Rating Board in accordance with the procedures established in 211 CMR 134.18.

Manual of Administrative Procedures for SDIP Claims. the Manual of Administrative Procedures prepared by the Merit Rating Board in accordance with the procedures established in 211 CMR 134.18.

Merit Rating Board. the Motor Vehicle Insurance Merit Rating Board established pursuant to M.G.L. c. 6, ? 183.

Neutral Step. Operator SDIP Step 15 (no credit or surcharge points).

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134.03: continued

Operator Information. the driver's license number, license state, name and date of birth as they appear on the driver's license of the Policyholder and of all Listed Operators on a Massachusetts automobile insurance policy.

Operator SDIP Step. the SDIP Step of a Listed Operator resulting from adjustments to the Neutral Step (Step 15) by the addition of Surcharge Points and the subtraction of Credit Points earned during the Policy Experience Period.

Personal Injury Protection. the insurance coverage designated as such in a Massachusetts automobile insurance policy.

Policy. for the policy year and each year thereafter, any motor vehicle liability policy as defined in M.G.L. c. 90, ? 34A; including any Massachusetts automobile insurance policy or any Massachusetts motor vehicle policy written in accordance with the Massachusetts Private Passenger Automobile Insurance Manual. Policy shall also include a national standard policy written at rates determined in accordance with the Massachusetts Private Passenger Automobile Insurance Manual.

(a) for policies subject to the 1991 SDIP: Policy: for policy year 1991 and each year thereafter, any motor vehicle liability policy as defined in M.G.L. c. 90, ? 34A; including any Massachusetts automobile insurance policy or any Massachusetts motor vehicle policy written in accordance with the Massachusetts Private Passenger Automobile Insurance Manual. (b) for policies subject to the 1990 SDIP: Policy: for policy year 1990 and each year thereafter, any motor vehicle liability policy as defined in M.G.L. c. 90, ? 34A; or any Massachusetts motor vehicle policy providing collision coverage as described in M.G.L. c. 90, ? 34O, provided such policies are written in accordance with the Massachusetts Private Passenger Automobile Insurance Manual.

Policy Effective Date. the date on which the automobile insurance policy takes effect.

Policy Experience Period. the six year period immediately preceding the effective date of the policy, however, incidents in the sixth year (as determined by the Surcharge Date) are not assigned Surcharge Points. An incident in the sixth year will prevent an operator from earning an Incident-Free Year. - for policies subject to the 1990 SDIP: Policy Experience Period: for policy year 1990, the six year period immediately preceding the effective date of the policy; for each subsequent policy year, the experience period may increase by one additional year.

Policy Number. a unique number, up to 16 characters long, that does not change throughout the life of the policy.

Policyholder. the principal named insured(s) on a Policy.

Private Passenger Vehicle. any vehicle rated by an Insurer in accordance with the Massachusetts Private Passenger Automobile Insurance Manual except motorized vehicles not normally driven on public ways.

Property Damage Liability Coverage. the insurance coverage designated as such in a Massachusetts automobile insurance policy, also known as "Damage to Someone Else's Property. "

Pre-1990 Safe Driver Insurance Plan. the plan specified in 211 CMR 92.00 and used for policies prior to 1990. 1990 Safe Driver Insurance Plan. the Plan applicable to policies with effective dates of January 1, 1990 through December 31, 1990. 1991 Safe Driver Insurance Plan. the Plan applicable to policies with effective dates of January 1, 1991 through December 31, 1991.

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134.03: continued

1992 Safe Driver Insurance Plan. the Plan applicable to policies with effective dates of January 1, 1992 through December 31, 1992. 1993 Safe Driver Insurance Plan. the Plan applicable to policies with effective dates of January 1, 1993 through December 31, 1993. 1994 Safe Driver Insurance Plan. the Plan applicable to policies with effective dates of January 1, 1994 through December 31, 1994. 1995 Safe Driver Insurance Plan. the Plan applicable to policies with effective dates of January 1, 1995 through December 31, 1995. 1996 Safe Driver Insurance Plan. The Plan applicable to policies with effective dates of January 1, 1996 through December 31, 1996.

Safe Driver Insurance Plan. (the Plan) the adjustment of insurance rates and premiums for vehicles subject to the safe driver insurance plan (the plan) on the basis of At Fault Accidents, Comprehensive Claims and Traffic Law Violations pursuant to the provisions of M.G.L. c. 175, ? 113B and applicable to policies effective on or after January 1, 1990.

Safe Driver Insurance Plan (SDIP) Statement. the notification from an Insurer to a Policyholder with one or more vehicles not assigned the lowest Operator SDIP Step (best credit) for Property Damage Liability Mandatory Coverages or Collision Coverage.

SDIP Information. information provided to an Insurer by the Merit Rating Board which is the basis upon which premium adjustments are made under the Safe Driver Insurance Plan, including but not necessarily limited to Surchargeable incidents (and the Surcharge Points applicable thereto), Credit Points and Driver's License status.

Starting Step Date. the beginning date of the Policy Experience Period, (six years) or a later date if the operator has less than six years of driving experience.

for policies subject to the 1990 SDIP: Starting Step Date: the original date the operator was licensed to drive in Massachusetts or the beginning date of the Policy Experience Period, whichever is later.

Statistical Plan. the Massachusetts automobile statistical plan promulgated annually by the Commissioner pursuant to the authority granted under M.G.L. c. 175A, ? 15(a).

Surchargeable Incident. an At Fault Accident, Traffic Law Violation, or Comprehensive Claim, as defined in 211 CMR 134.00, which may result in an increase in the policyholder's premium.

Surcharge Date. the date of notice entered by an Insurer on the Surcharge Notice form required by 211 CMR 134.05, the date of payment on the Comprehensive Claim Notice form required by 211 CMR 134.06, the disposition date entered by a court on the citation for a Traffic Law Violation or the date the payment of the fine assessed for civil motor vehicle infractions is received by the Registry of Motor Vehicles.

Surcharge Notice. the notice of an At Fault Accident provided to the Involved Operator and/or the Policyholder.

Surcharge Points. the point values assigned by the Commissioner of Insurance for each surchargeable incident set forth in 211 CMR 134.15.

All other items in 211 CMR 134.00 shall be construed as defined in M.G.L. c. 90, ?? 34A and 34O, M.G.L. c. 175 and M.G.L. c. 175A, or, if not defined in these chapters, in accordance with common usage.

134.04: Vehicles, Policies, Accidents, and Traffic Law Violations Subject to the Safe Driver Insurance Plan

(1) Vehicles Subject to the Plan. Any Private Passenger Vehicle rated in accordance with the Massachusetts Private Passenger Automobile Insurance Manual shall be a vehicle subject to the Safe Driver Insurance Plan.

For policies subject to the 1991 SDIP: Vehicles Subject to the Plan. Any Private Passenger Vehicle registered in Massachusetts.

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134.04: continued

(2) Policies Subject to the Plan. Any Policy meeting the definition given in 211 CMR 134.03 that provides the mandatory liability coverages (Property Damage Liability Coverage, Bodily Injury to Others Coverage, Personal Injury Protection Coverage) and/or Collision Coverage for one or more vehicles subject to the Safe Driver Insurance Plan shall be a Policy subject to the Safe Driver Insurance Plan.

(3) Accidents Subject to the Plan. (a) Any accident occurring prior to January 1, 1984, shall be an accident subject to the Safe Driver Insurance Plan if it results in a Collision, Limited Collision, or Property Damage Liability claim payment of more than $50 in excess of any applicable deductible for damage to or caused by a vehicle subject to the Safe Driver Insurance Plan (211 CMR 92.00). (b) Any accident occurring on or after January 1, 1984 and before December 31,1994, shall be an accident subject to the Safe Driver Insurance Plan if it results in a Collision, Limited Collision or Property Damage Liability claim payment of more than $200 in excess of any applicable deductible for damage to or caused by a vehicle subject to the Safe Driver Insurance Plan. (c) Any accident occurring on or after January 1, 1995 shall be an accident subject to the Safe Driver Insurance Plan if it results in a Collision,Limited Collision or Property Damage Liability claim payment of more than $500 in excess of any applicable deductible for damage to or caused by a vehicle subject to the Safe Driver Insurance Plans.

(4) Traffic Law Violations Subject to the Plan. Any conviction of an operator, including payments made or assessed pursuant to M.G.L. c. 90C, or any assignment of an operator to a driver alcohol education program, for a Traffic Law Violation as listed in Appendix A of 211 CMR 134.00, shall be subject to the Safe Driver Insurance Plan. The Plan shall also take into consideration certain Major and Minor Out-of-State Traffic Violations as specified in 211 CMR 134.00: Appendix A as well as convictions reported to the Registry of Motor Vehicles as the result of any compact entered into by the Secretary of Public Safety for the exchange of information between states.

(5) Comprehensive Claims Subject to the Plan. Any claim made under Comprehensive Coverage on or after January 1, 1985 and for which payment is made on or after that date shall be a Comprehensive claim subject to the Safe Driver Insurance Plan.

134.05: Notification of At Fault Accidents

(1) Claims Under Property Damage Liability Coverage - Single Vehicle Accidents. Within 20 working days of the payment of any Property Damage Liability claim in excess of the amounts specified in 211 CMR 134.04(3) that resulted from an accident involving only one vehicle where that vehicle was a vehicle subject to the Safe Driver Insurance Plan, the Insurer shall report an At Fault Accident to the Merit Rating Board and shall notify the Involved Operator of said report. If the Policyholder is a person other than the Involved Operator, the Insurer shall send the Policyholder a copy of the notice.

(2) Claims Under Collision Coverage - Single Vehicle Accidents. Within 20 working days of the payment of any Collision claim in excess of the amounts specified in 211 CMR 134.04(3) that resulted from an accident involving only one vehicle, where that vehicle was a vehicle subject to the Safe Driver Insurance Plan, the Insurer shall report an At Fault Accident to the Merit Rating Board and shall notify the Involved Operator of said report unless the claim resulted from damage to the vehicle caused by flying gravel, missiles or falling objects. If the Policyholder is a person other than the Involved Operator, the Insurer shall send the Policyholder a copy of the notice.

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