PLMAmedium
Under the MAIP Rules of Operation, when a Massachusetts private passenger applicant is placed through MAIP, who issues and services the assigned policy?
AThe Division of Insurance writes the policy directly, collects all premium, and adjusts every claim in-house
BCAR continues to service all assigned private passenger policies
A designated servicing carrier issues the policy, collects premium, and adjusts claims under MAIP rules
DThe producer self-issues the policy as a managing general agent
Why this is the answer
Under CAR Rules 21 through 40, which implement the MAIP, an applicant the voluntary market declines is assigned to a member company in proportion to that company's quota share. The assigned company must issue the policy, collect premium and service claims for it, billing the lesser of the premium at its own voluntary rates and the premium at MAIP rates. The MAIP itself administers the assignment process, eligibility and plan governance.
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