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In Massachusetts personal auto, what is the function of the Massachusetts Automobile Insurance Plan (MAIP)?
The residual market mechanism, since 2008, that places private passenger applicants unable to obtain coverage voluntarily with assigned servicing carriers
BA state-owned direct writer that issues voluntary-market policies in direct competition with private carriers, offering standard rates to all drivers regardless of loss history or underwriting criteria.
CA reinsurance pool exclusively for catastrophic PIP claims
DA premium-financing arm of the Division of Insurance
Why this is the answer
The Massachusetts Automobile Insurance Plan (MAIP) is the assigned-risk plan for private passenger auto that Commonwealth Automobile Reinsurers (CAR) operates under CAR Rules 21 through 40, adopted when competitive rating began in 2008. Every private passenger policy must be written voluntarily or be declined and referred to the MAIP, which assigns the applicant to a member company in proportion to its quota share; that company issues and services the policy. CAR itself remains the residual market and statistical agent for motor vehicle insurance, including commercial auto.
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