P&C Personal Auto
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Filing Review Requirements |
Regulatory Reference |
Comments |
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FORMS |
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Applications |
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No filing requirement for applications (unless made part of the policy) |
Title 8, §3541 and §4205 |
Incorrect statements on the application shall not bar the right to recovery unless it was meant to deceive or unless it materially affected either the acceptance of the risk or the hazard assumed by the insurer. |
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After Market Parts |
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Permitted |
Department requirement |
Must meet standards of original parts |
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Alcohol |
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Exclusion not permitted |
Department requirement |
Acts committed under the influence may not be excluded. |
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Social Host Liability |
Bulletin 136 |
See Bulletin |
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Appeals |
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Limit of liability may be waived |
Title 8, §4203 |
The Company has unlimited liability should they appeal a case without the Insured's consent. |
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Arbitration |
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Cannot be both binding and mandatory |
Department requirement |
Binding arbitration is not permitted if the process can be demanded unilaterally, since it may deprive the insured of access to the court system. |
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Bankruptcy Provision |
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Bankruptcy of the Insured cannot relieve the company of their liability |
Title 8, §4203 |
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Cancellation & Non-renewal |
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Days' Notice and Cancellation/Nonrenewal Reasons |
Title 8, §4223-5 |
15 days' notice for cancellation for non-pay. |
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Disclosure |
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Notice Requirements |
Regulation 78-1 (1) |
Insured must be given written notice when coverage has been modified or eliminated. |
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Exclusion of Named Driver |
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Not permitted |
Title 23, §800 |
Named Driver may be limited to statutory limits |
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Filing Standards |
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Prior Approval |
Regulation I-2010-03 |
Forms must be submitted at least 30 calendar days prior to their proposed effective date. |
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Financial Responsibility |
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Prior Approval |
Department requirement |
When a policy is certified as proof of insurance we do not allow a requirement for reimbursing by the Insured for any payment made by the company. |
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Fraud |
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Guidelines |
Title 8, §3879 and §4205 |
If a policy is obtained through fraud or material misrepresentation, that policy may be voided. If this occurs after the effective date, the company may only deny the claim on that basis, however, has grounds for cancellation. |
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Intra-family |
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May not be excluded |
Department requirement |
We do not allow any intra-insured or intra-family exclusions regarding motor vehicle liability. |
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Liberalization Clause |
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Not required |
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Loss Settlement |
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Loss Settlement and Payment Conditions |
Regulation 79-2; S6 |
The Insurer has 15 days to respond to a properly executed Proof of Loss. After Settlement has been agreed upon, Insurer shall mail in the agreed amount to the claimant and/or loss payee within 10 working days. |
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Pollution |
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May not be excluded except as noted. |
Department requirement |
Pollution may not be excluded in any personal lines policies. |
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Punitive or Exemplary Damages |
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May be excluded |
Bulletin 139 |
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Racing Exclusions |
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Limitations |
Department requirement |
Exclusions for "racing" or "contests" can only apply to "organized" events of this type. |
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Readability |
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Guidelines |
Regulation I-2010-03 |
Flesh score minimum is 40, not less than 10 point type, one point leaded. |
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Uninsured/underinsured Motorists |
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UM/UIM is mandatory on all policies providing automobile coverage. |
Title 23, §800 and §941 |
Minimum limits for UM/UIM are $50,000 per person, $100,000 per accident, $10,000 per claim property damage. |
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Auto Minimum Coverage Limits |
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Statutory: $25,000 per person, |
Title 23, §800 |
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RATING |
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Open Competition, Use and File |
Title 8, §4688 Loss Costs - |
Filing must be received within 15 days of effective date. Rate filing must include verifying material and actuarial backup. |
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Discounts |
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Insured must be advised of all available discounts |
Regulaiton 78-1 |
Notice must read: "NOTICE OF AVAILABILITY OF DISCOUNTS." Discounts for Automatic Braking System, Multi Car, etc. |
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Rating Plan Requirements |
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Open Rating applies. |
Title 8 VSA: §4724(7) Bulletin 55 Bulletin 126
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Requirements of various premium tiers must be revealed, and must be mutually exclusive. |
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Territory Definitions |
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Must be defined in filing, with actuarial backup for each. |
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