PLMAmedium
Following the 2008 reform that created MAIP, what is the continuing role of Commonwealth Automobile Reinsurers (CAR) in the Massachusetts auto market?
ACAR was dissolved entirely in 2008
CAR runs the commercial auto residual market and operates the MAIP under its rules
CCAR became the primary regulator of all auto insurance, overseeing both private passenger and commercial rate filings for every insurer
DCAR now handles only homeowners residual placements
Why this is the answer
Commonwealth Automobile Reinsurers (CAR), created under c. 175 §113H, remains the industry-operated residual market and statistical agent for motor vehicle insurance in Massachusetts. When competitive rating began in 2008, private passenger residual business moved to the Massachusetts Automobile Insurance Plan (MAIP), an assigned-risk plan that CAR operates under its Rules 21 through 40. For commercial auto, CAR still runs a residual market pool: every member writing commercial auto shares in it financially, and a limited number of selected servicing carriers issue and service the policies.
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