Voluntary Rate Order of Calculation

Transcription

1 Rate Exhibit for the Commonwealth of Massachusetts 1.) The first step of the voluntary rate calculation formula is to determine the Household Factor. The Developed Household Factor is the average factor for all eligible to be rated drivers. For policies where there are more drivers than vehicles, the Developed Household Factor is the average of the highest ranked drivers up to the number of vehicles. The rank is determined using the Household Factor for BI from highest to lowest (highest factor = highest rank). Voluntary Rate Order of Calculation Household Factor Items RBI OBI PD UM UIM PIP MED COMP COLL LIM COLL LOAN RENT ROADSIDE Driver Classification Factor Driving Record Points Factor Subtraction of Unity (1 Distant Student Discount) x x x x x x x x x x x x x (1 Minor Child Discount) x x x x x x x x x x x x x (1 Good Student Discount) x x x x x x x x x x x x x Household Member Factor x x x x x x x x x x x x x Years Licensed and Points Factor x x x x x x x x x x x x x Driver Training Factor x x x x x x x x x x x x x Household Factor 2.) The second step of the voluntary rate calculation formula is performed for each vehicle on the policy using the Developed Household Factor from step 1. Item RBI OBI PD UM UIM PIP MED COMP COLL LIM COLL LOAN RENT ROADSIDE Developed Household Factor Base Rate x x x x x x x x x x x x x Category Factor x x x x x x x x x x x x x Residency Rewards Factor x x x x x x x x x x x x Household Structure Factor x x x x x x x x x x x Full Coverage Factor x x x x x x x Vehicle Garaging Location Factor x x x x x x x x x x x x x Garaging vs Mailing Zip Code Factor x x x x x x x x x x Vehicle Symbol Factor x x x x x x x x x x x Value Class Vehicle Factor x x x x Vehicle Age Factor (4) x x x x x x x x x x x x x Excess Vehicle Factor x x x x x x x x x x x Limit Factor x x x x x x x x (Limit Factor 1) x Deductible Factor x x x x Vehicle Age by Deductible Factor x x (1 Multi Car / Residence Insurance Discount) x x x x x x x x x x x x (1 Three Year Safe Driving Discount / Five Year Accident Free Discount) x x x x x x x x x x (1 Paid in Full Discount) x x x x x x x x x x (1 Electronic Funds Transfer Discount) x x x x x x x x x x (1 Multi Policy Discount) x x x x x x x x x x x x (1 Continuous Insurance Discount) x x x x x x x x x x x x x (1 On line Quote Discount) x x x x x x x x x x (1 Paperless Discount) x x x x x x x x x x x x x (1 Mature Driver Discount) x x x x x x x x x x x x x (1 + Business Use Surcharge) x x x x x x x x x x (1+ Financial Responsibility Filing Surcharge) x x x x x x x x x x Policy Term Factor x x x x x x x x x x x x x Usage Based Insurance Factor x x x x x x x x x x x x x Bad Debt Factor x x x x x x x x x x Apply Rate Capping Rule (5) x x x x x x x (1 E Signature Discount) (6) x x x x x x Round to the nearest whole dollar Operations Expense Load (1) + + Acquisition Expense Load (2) + + Round to the nearest whole dollar Developed Premium (3),(7) Operations Acquisition Item ACPE Expense Load (1) Expense Load (2) Base Rate Operations Expense Factor x Operations Expense Foreign Drivers License Factor x Operations Expense Late/Insufficient Payment Factor x Operations Expense Points Factor x Vehicle Garaging Location Factor x Limit Factor x (1 Multi Policy Discount) x (1 Paperless Discount) x x (1 Mature Driver Discount) x x x Acquisition Expense Full Coverage Factor x Acquisition Expense Residence Insurance Factor x Acquisition Expense On line Quote Factor x Acquisition Expense Proof of Prior Insurance Factor x Acquisition Expense Vehicle Count Factor x Policy Term Factor x x x Number of Motor Vehicles / Usage Based Insurance Factor x x x Apply Rate Capping Rule (5) x x (1 E Signature Discount) (6) x x Round to the nearest whole dollar Developed Premium (3),(7)

2 Rate Exhibit for the Commonwealth of Massachusetts 3.) The third step is for customers who meet the criteria of Exhibit 1 of MA DOI Bulletin Calculate the MAIP rate as shown below using the MAIP rates effective 7/1/2015. Customers who do not meet the criteria of Exhibit 1 of MA DOI Bulletin will bypass this Rate Order Calculation and proceed to step four. MAIP Rate Order of Calculation Item RBI OBI PD PIP UM Base Rate (8) Driving Record Points Factor x x x x x Driving Record Points Factor Adjustment (10) x x x x x (1 Annual Mileage Discount) x x x x x (1 Multi Car Discount) x x x x (1 Low Frequency Discount) x x x x Policy Term Factor x x x x x Apply Rate Capping Rule (5) x x x x x Round to the nearest whole dollar Developed Premium (3) 4.) When a policy meets the criteria of Exhibit 1 of MA DOI Bulletin , compare the vehicle level Developed Premium in the MAIP Rate Order of Calculation and the Voluntary Rate Order of Calculation. (9) Cap the Voluntary Developed Premium from step 2 for each line coverage with the MAIP Developed Premium in Step 3. The sum of the lower Developed Premiums will be the Total Policy Premium When a policy does not meet the criteria of Exhibit 1 of MA DOI Bulletin , the Total Policy Premium is the sum of the Developed Premiums in the Voluntary Rate Order of Calculation. (1) The Operations Expense is per vehicle and only applied to RBI. If RBI is not purchased, then it is applied to Comprehensive. (2) The Acquisition Expense is per vehicle and only applied to RBI. If RBI is not purchased, then it is applied to Comprehensive. (3) There is a minimum premium of $1 for each coverage selected for each vehicle. (4) If coverage is RBI / OBI / PD / PIP / UM / UIM / MED / RENT / ROADSIDE / Limited COLL and symbol = 66 then Vehicle Age Factor is 1.0 If coverage is COMP / COLL / LOAN and symbol 66, 67, 68, or 69, then Vehicle Age Factor is 1.0 (5) See rule P23 for Applying Rate Capping. (6) See rule P31 for the E Signature Discount calculation. (7) If 20/40 OBI is selected, the Developed OBI Premium will always be $1. If no coverage is selected for OBI, the Developed OBI Premium will be $0. (8) Base Rates are adjusted to include both the Continuous Coverage and Class 15 discounts, where applicable. (9) If the RBI Voluntary Developed Premium is capped at the MAIP Developed Premium in Step 4, then 1) Set both the Operations Expense Load and Acquisition Expense Load to $1. 2) Subtract $2 from the RBI developed premium. 3) Apply the Rate Capping Rule and Round to the nearest whole dollar. (10) The Driving Record Points Factor Adjustment is an adjustment to the MAIP premium by translating Progressive Points to MAIP Points.

3 Driver Classification Factor Table Years Licensed RBI/OBI PD UM/UIM PIP MED COMP COLL LIM COLL LOAN RENT ROADSIDE Page 1 -

4 Violation Points Table Violation RBI/OBI/PD PIP/UM/UIM/MED COMP/LOAN COLL/LIM COLL/RENT/ROADSIDE Code 1st 2nd ADDTL 1st 2nd ADDTL 1st 2nd ADDTL 1st 2nd ADDTL AAF AF AFM AFN ANC ANO APC ASW BOT CMP CMU CRD DEQ DEV DR DWI FAR FDL FEL FLE FRA FTC FTY HOM IBK IP IT LIC LTS MAJ MMV NAF NFX NIS REF RKD SCH SLV SNC SPD SUS TM TMP UDR WSR Page 2 -

5 Violation Classification Table Violation Violation Code Class AAF AAF AF1 AAF AFM IND AFN IND ANC IND ANO IND APC IND ASW IND BOT DWI CMP IND CMU IND CRD MAJ DEQ IND DEV MIN DR MAJ DWI DWI FAR MIN FDL MAJ FEL MAJ FLE MAJ FRA MIN FTC MIN FTY MIN HOM MAJ IBK MIN IP MIN IT MIN LIC MIN LTS MAJ MAJ MAJ MMV MIN NAF NAF NFX IND NIS MIN REF DWI RKD MAJ SCH MIN SLV MAJ SNC IND SPD SPD SUS MAJ TM1 IND TMP IND UDR MAJ WSR MIN - Page 3 -

6 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y Page 4 -

7 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Page 5 -

8 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y Page 6 -

9 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Page 7 -

10 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y Page 8 -

11 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Page 9 -

12 RBI/OBI/PD Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver RBI RBI Adj OBI OBI Adj PD PD Adj Points Licensed in Years 4-5 RBI/OBI PD MAIP MAIP MAIP MAIP MAIP MAIP Y N Y N Y N Y N Y N Y N Y N Page 10 -

13 UM/UIM/PIP/MED Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver PIP PIP Adj UM UM Adj Points Licensed in Years 4-5 UM/UIM PIP MED MAIP MAIP MAIP MAIP Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y Page 11 -

14 UM/UIM/PIP/MED Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver PIP PIP Adj UM UM Adj Points Licensed in Years 4-5 UM/UIM PIP MED MAIP MAIP MAIP MAIP N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Page 12 -

15 UM/UIM/PIP/MED Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver PIP PIP Adj UM UM Adj Points Licensed in Years 4-5 UM/UIM PIP MED MAIP MAIP MAIP MAIP Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y Page 13 -

16 UM/UIM/PIP/MED Driving Record Points Factor Table - PDIC & MAIP Years AAF on Driver PIP PIP Adj UM UM Adj Points Licensed in Years 4-5 UM/UIM PIP MED MAIP MAIP MAIP MAIP N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Y N Page 14 -