Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 56.00 - REDUCTIONS IN PREMIUM CHARGES FOR PRIVATE PASSENGER MOTOR VEHICLE INSURANCE FOR INSURED ELECTING OPTIONAL PARTICIPATING REPAIR SHOP › Section 56.05 - Participating Repair Shop Endorsement Plans

Current through Register 1525, July 5, 2024
No plan shall be approved unless it contains each of the
				following provisions:
(1)
Participating Repair Shop Endorsement
. An insurer
			 offering a participating repair shop endorsement shall use the endorsement
			 language as follows:
If we offer a "participating repair shop endorsement", you may,
				at your option, agree to have this endorsement added to and incorporated as
				part of your policy, under the endorsement, we must, at the time you purchase
				your policy, reduce your premium for collision, limited collision and
				comprehensive coverages by % [between 5% and 15%, unless deviation is filed
				with Commissioner]. In exchange for this discount on your premium, you must
				agree that, in the event of a claim under any of these coverages, you will have
				your auto repaired at a participating repair shop designated by us. The
				participating repair shop must be geographically convenient for you and must
				perform repairs of comparable quality to those made by non-participating repair
				shops.
In order to receive the discount, you must have all repairs,
				except for emergency repairs, performed at the participating repair shop we
				designate. If you have repairs performed at a non-participating shop, we do not
				have to pay more than ______ % [no less than 80%] of what we would have paid to
				one of our participating shops.
(2)
Claims
			 Procedure
. The insurer shall describe the appropriate claims
			 mechanism for insureds who choose to have the endorsement added to their
			 policy. Insureds may be instructed to proceed under a direct payment system, a
			 completed work claim system, or to follow some other arrangement the insurer
			 has developed for payment to its participating shops for repairs performed in
			 accordance with the endorsement. In any case, the insured must retain the right
			 of electing not to repair the vehicle, receiving a check for the amount of the
			 damage and having the actual cash value of the vehicle reduced
			 accordingly.
(3)
Discount on Premium Charges
.
(a) Except for those insureds residing in
			 areas for which the insurer has obtained a waiver, the insurer shall make
			 available to every proposed insured or insured an appropriate discount on
			 collision, limited collision and comprehensive coverages to reflect the
			 estimated savings through participation in the participating repair shop plan.
			 If the discount falls within the range of 5% to 15% of the otherwise applicable
			 premium for those coverages, the discount shall be presumed to be reasonable.
			 If such discount deviates from the above-mentioned range of 5% to 15%, such
			 deviation shall be allowed only if the Commissioner finds that the discount
			 that the insurer desires to offer is adequate, not excessive, just, and
			 reasonable. Every application for permission to so deviate shall be filed with
			 the Commissioner, specifying the basis therefor and shall be accompanied by the
			 data or other information upon which the applicant relies.
(b) An insured who chooses not to add the
			 participating repair shop endorsement at the time of purchase of the policy may
			 elect to add it at any time prospectively, at which time the insured shall
			 receive a
pro-rata
discount on collision, limited collision
			 and comprehensive coverages. An insured who chose to add the endorsement at the
			 time of purchase of the policy may have it removed at any time prospectively,
			 upon repayment of the
pro-rata
amount of the discount
			 initially received.