Code of Massachusetts Regulations › 211 CMR - DIVISION OF INSURANCE › Title 211 CMR 134.00 - Safe Driver Insurance and Merit Rating Plans › Section 134.02 - Definitions

Current through Register 1525, July 5, 2024
As used in
				211 CMR 134.00, the
				following words shall mean:
At-fault Accident
. An accident
				involving a vehicle subject to
				211 CMR 134.00 wherein the
				Involved Operator was more than 50% at fault, as determined by the application
				of the Standards of Fault of the Board of Appeal, and that:
(a) For accidents occurring before July 1, 2015, results in a
				claim payment made by an Insurer, exclusive of any deductible, exceeding
				$500.
(b) For accidents occurring on or after July 1, 2015, results
				in a claim payment made by an Insurer, exclusive of any deductible, exceeding
				$1,000.
Board of Appeal
. The Board of Appeal
				on Motor Vehicle Liability Policies and Bonds established pursuant to M.G.L. c.
				26, § 8A.
Bodily Injury Liability Coverage
. The
				insurance coverage designated as such in a Massachusetts Private Passenger
				Motor Vehicle insurance Policy.
Collision Coverage
. The insurance
				coverage designated as such in a Massachusetts Private Passenger Motor Vehicle
				insurance Policy.
Commissioner
. The Commissioner of
				Insurance appointed pursuant to M.G.L. c. 26, § 6, or his or her
				designee.
Competitive Market
. A market in which
				Private Passenger Motor Vehicle insurance rates are not fixed and established
				pursuant to M.G.L. c. 175, § 113B.
Comprehensive Coverage
. The insurance
				coverage designated as such in a Massachusetts Private Passenger Motor Vehicle
				insurance Policy.
Coverage Selections Page
. The coverage
				selections page of a Massachusetts Private Passenger Motor Vehicle insurance
				Policy, or a replacement Coverage Selections Page.
Credit Code
. The code representing the
				number of consecutive Incident-free Years within the Incident-free Period
				applicable to any operator as approved by the Commissioner in the Statistical
				Plan.
Credit Points
. Except as otherwise
				provided by
				211 CMR 134.00, one Credit
				Point is earned by an operator with a valid driver's license for each
				Incident-free Year within the Policy Experience Period.
Designated Statistical Agent
. The
				rating organization or other agency designated by the Commissioner as the
				statistical agent for the Division of Insurance pursuant to M.G.L. c. 175A,
				§ 15(a).
Division
. The Division of Insurance
				established pursuant to M.G.L. c. 26, § 1.
Excellent Driver Discount
. The
				percentage value assigned by the Commissioner at the time Private Passenger
				Motor Vehicle insurance rates are fixed-and-established pursuant to M.G.L. c.
				175, § 113B reflecting the lower expected loss experience of operators
				with Incident-free Periods of more than five and less than six years, which may
				vary according to the affected liability coverages and Collision Coverage,
				irrespective of the class and territory of the Policy.
Excellent Driver Discount Plus
. The
				percentage value assigned by the Commissioner at the time Private Passenger
				Motor Vehicle insurance rates are fixed-and-established pursuant to M.G.L. c.
				175, § 113B reflecting the lower expected loss experience of operators
				with Incident-free Periods of at least six years, which may vary according to
				the affected liability coverages and Collision Coverage, irrespective of the
				class and territory of the Policy.
Fixed-and-established Market
. A market
				in which premiums for Private Passenger Motor Vehicle insurance are based on
				rates fixed-and-established by the Commissioner pursuant to M.G.L. c. 175,
				§ 113B, following a hearing and decision pursuant to M.G.L. c. 175E,
				§ 5 finding that competition in the Private Passenger Motor Vehicle
				insurance market is, with respect to any territory or to any kind, subdivision
				or class of insurance, either insufficient to assure that rates would not be
				excessive, or so conducted as to be destructive of competition or detrimental
				to the solvency of Insurers.
Incident-free Period
. The number of
				consecutive Incident-free Years immediately preceding the Policy Effective Date
				and within the Policy Experience Period of the Policy for which an operator
				with a valid driver's license had no Surchargeable Incidents.
Incident-free Year
. Any of the series
				of one-year periods immediately preceding the Policy Effective Date and within
				the Policy Experience Period of the Policy for which the licensed operator had
				no Surchargeable Incidents.
Insurer
. Any corporation, association,
				partnership, group or individual engaged as a principal authorized to write
				Private Passenger Motor Vehicle insurance in the Commonwealth.
Involved Operator
. Any person
				determined to have been operating a motor vehicle subject to
				211 CMR 134.00 at the time
				of, and involved in, an accident subject to
				211 CMR 134.00, or any
				person having a traffic law violation subject to
				211 CMR 134.00, as specified
				by
				211
				CMR 134.03.
Limited Collision Coverage
. The
				insurance coverage designated as such in a Massachusetts Private Passenger
				Motor Vehicle insurance Policy.
Listed Operator
. The Policyholder and
				any person listed on the new or renewal application for the Policy covering one
				or more vehicles subject to
				211 CMR 134.00.
Merit Rating Board (MRB)
. The Motor
				Vehicle Insurance Merit Rating Board established pursuant to M.G.L. c. 6A,
				§ 57A.
Merit Rating Information
. Motor
				vehicle insurance claim and traffic law violation information provided to an
				Insurer by the Merit Rating Board that will be used by Insurers in the
				application of the Insurer's Merit Rating Plan that Insurers may submit
				pursuant to M.G.L. c. 175E during Competitive Markets.
Merit Rating Plan
. A rating procedure
				used for calculating Private Passenger Motor Vehicle insurance premiums by
				Insurers in a Competitive Market that utilizes past motor vehicle insurance
				claim and traffic law violation experience of the operators insured under a
				Policy to forecast future losses by measuring their loss experience against the
				loss experience of operators in the same classification to produce a
				prospective premium.
MRB Manual(s)
. The Manual(s) prepared
				by the Merit Rating Board in accordance with
				211 CMR
				134.15.
Notice of At-fault Accident
				Determination
. The notice of an At-fault Accident provided by the
				Insurer to the Merit Rating Board, the Involved Operator and/or the
				Policyholder during a Competitive Market.
Operator Information
. The driver's
				license number, license state, name and date of birth as they appear on the
				driver's license of the Policyholder and of all Listed Operators on a
				Massachusetts Private Passenger Motor Vehicle insurance Policy.
Personal Injury Protection Coverage
.
				The insurance coverage designated as such in a Massachusetts Private Passenger
				Motor Vehicle insurance Policy.
Policy
. For the policy year and each
				year thereafter, any motor vehicle liability Policy as defined in M.G.L. c. 90,
				§ 34A applicable to Private Passenger Motor Vehicles; including any
				Massachusetts motor vehicle insurance Policy written in accordance with a
				Private Passenger Motor Vehicle insurance manual.
Policy Effective Date
. The date on
				which the Massachusetts Private Passenger Motor Vehicle insurance Policy takes
				effect.
Policy Experience Period
. The six year
				period immediately preceding the effective date of the Policy.
Policy Number
. A unique number, up to
				16 characters long, that does not change throughout the life of the
				Policy.
Policyholder
. The principal named
				insured(s) on a Policy.
Private Passenger Motor Vehicle
. Any
				vehicle, except motorized vehicles not normally driven on public ways, that is
				subject to rating in accordance with a Private Passenger Motor Vehicle
				insurance manual, regardless of whether a Competitive Market or a
				Fixed-and-established Market is in place.
Property Damage Liability Coverage
.
				The insurance coverage designated as such in a Massachusetts Private Passenger
				Motor Vehicle insurance Policy, also known as "Damage to Someone Else's
				Property."
Safe Driver Insurance Plan or SDIP
.
				The adjustment of insurance rates and premiums during Fixed-and-established
				Markets for Private Passenger Motor Vehicles subject to
				211 CMR 134.00 on the basis
				of motor vehicle insurance claims arising from At-fault Accidents, traffic law
				violations and Comprehensive Coverage claims.
Safe Driver Insurance Plan (SDIP)
				Statement
. For Policies subject to the Safe Driver Insurance Plan
				during Fixed-and-established Markets, the notification from an Insurer to a
				Policyholder with one or more vehicles not assigned the Excellent Driver
				Discount Plus (best credit) for Property Damage Liability Coverage, mandatory
				Bodily Injury Liability Coverage, Personal Injury Protection Coverage, or
				Collision Coverage.
SDIP Information
. Information provided
				to an Insurer by the Merit Rating Board which is the basis upon which Private
				Passenger Motor Vehicle insurance premium adjustments that are required to be
				made under the Safe Driver Insurance Plan during Fixed-and-established Markets
				including, but not necessarily limited to, Surchargeable Incidents (and the
				Surcharge Points applicable thereto), number of Incident-free Years or Credit
				Points and driver's license status.
Statistical Plan
. The Massachusetts
				automobile statistical plan promulgated by the Commissioner pursuant to the
				authority granted under M.G.L. c. 175A, § 15(a).
Surchargeable Incident
. An At-fault
				Accident, traffic law violation, or Comprehensive Coverage claim, which may
				result in an increase in the Policyholder's premium during
				Fixed-and-established Markets.
Surcharge Date
. The date of notice
				entered by an Insurer on the Surcharge Notice required by
				211 CMR
				134.04, the date of payment on the
				Comprehensive Coverage claim notice required by
				211
				CMR 134.05, the disposition date entered by a
				court on the citation for a traffic law violation, or the date the payment of
				the fine assessed for civil motor vehicle infractions is received by the
				Registry of Motor Vehicles.
Surcharge Notice
. The notice of an
				At-fault Accident provided by the Insurer to the Merit Rating Board, the
				Involved Operator and/or the Policyholder during a Fixed-and-established
				Market.
Surcharge Percentage
. The percentage
				value assigned by the Commissioner when Private Passenger Motor Vehicle
				insurance rates are fixed and established pursuant to M.G.L. c. 175, §
				113B to be applied to the total number of Surcharge Points for each
				Surchargeable Incident during the Policy Experience Period, which may vary
				according to the affected liability coverages and Collision Coverage,
				irrespective of the class and territory of the Policy.
Surcharge Points
. The point values
				assigned by the Commissioner for each Surchargeable Incident set forth in
				211 CMR
				134.13.
All other items in
				211 CMR 134.00 shall be
				construed as defined in M.G.L. c. 90, §§ 34A and 34O, M.G.L. c. 175
				and M.G.L. c. 175A, or, if not defined in these chapters, in accordance with
				common usage.