supplemental application for massachusetts motor vehicle ... · with the following required...

CIC-2115 (12/14) (See Reverse Page for Required Applicant Signature) of 2 Deleted: 11

Supplemental Application for Massachusetts Motor Vehicle Insurance (must be completed and submitted with all Personal Auto applications)

Company: The Commerce Insurance Company Producer Name:

Named Insured

Mailing Address

City/State Zip Code Producer Code:

E-mail address: Policy Effective Date: Home Phone: Cell Phone:

1. Do you have Property Insurance on your principal place of residence? ___ Yes ___ No If yes, and your principal place of residence is in Massachusetts, please provide the following information, as you may be eligible for an Account Discount.

What company is your property policy with? ___ Commerce/Citation___ Fair Plan ___ Other (Name) __________________ What type of property policy do you have? ___ Homeowners with HO-15 ___ Condo (owner occupied) ___ Renters ___ Homeowners without HO-15 2. Do you have an Umbrella Policy or Endorsement with Commerce or Citation? If yes, please provide the Policy Number.

___________ 3. Do you have a Life Policy with MAPFRE Life Insurance Company? If yes, please provide the Policy Number. ___________ 4. How long have you been living at your current residence? ____________________ 5. Have you had a lapse in auto insurance coverage in the past 12 months? ___ Yes ___ No 6. Do you currently have a Personal Automobile Insurance Policy? ___ Yes ___ No If Yes: a. What is the name of your current insurance carrier? _______________________ b. How many months have you been with your current insurance carrier? _________ c. Which of the following limit ranges does your Bodily Injury Limit belong?

(if varying limits by vehicle, please choose based on the highest limit)

______ < or = 20/60 ______ 100/100 to <250/500 ______ 25/50 to <50/50 ______ > or = 250/500 ______ 50/50 to <100/100

7. Have you been previously insured with Commerce Insurance during the past 24 months? ___ Yes ___ No 8. How many automobiles in addition to your motorcycle, do you have insured with Commerce Insurance? ________ 9. Do you have a Foreign Driver’s License? If yes, attach a copy of the front and back of the drivers ___ Yes ___ No

license to this application. 10. Were you previously licensed to drive outside of Massachusetts or in a foreign country? ___ Yes ___ No If yes, attach a 917 Form for possible driving credit. 11. Do you drive less than 20,001 miles annually and qualify for the Annual Mileage Discount (AMD)? ___ Yes ___ No

If yes, attach a copy of the AMD Form, CIC-750 to this application. The insured can also submit their current odometer reading anytime by accessing the Annual Mileage page through their CommerceCares.com account.

12. Would you like to purchase the Commerce Enhancer Package Endorsement for an additional premium? ___ Yes ___ No 13. Would you like to purchase the Commerce Elite Package Endorsement for an additional premium? ___ Yes ___ No 14. Would you like to purchase Auto Loan/Lease Coverage for any of your vehicles for an additional premium? ___ Yes ___ No Please check applicable vehicle: #1______ #2______ #3______ #4_______ 15. Would you like to purchase Accident Forgiveness for an additional premium? ___ Yes ___ No 16. Would you like to purchase the Motorcycle Accessory Endorsement for an additional premium? ___ Yes ___ No Please indicate the limit you would like for each applicable vehicle: #1______ #2______ #3______ #4______

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17. Are any of the listed operators eligible for the Good Student Discount (GSD)? ___ Yes ___ No If yes, please attach a completed GSD Form CIC-2134, or a copy of the operator’s most recent report card to this application. 18. Are any of the listed operators eligible for the Student Away from Home Discount? ___ Yes ___ No

If yes, please provide the name(s) of the operator(s): ____________________________________________________________________________ ____________________________________________________________________________

19. Are any of the listed operators eligible for the Smart Driver Discount? ___ Yes ___ No If yes, please check off the appropriate course below including the driver’s name and course completion date. Course: Drivers Name: Completion Date: ADT – Driven _______ _______________________________ _________________ ADT – In Control _______ _______________________________ _________________ ADT – Stevens _______ _______________________________ _________________ ADT – Central MA DSDP _______ _______________________________ _________________ teenSMART _______ _______________________________ _________________ 20. Will you be enrolled in either CIC’s Electronic Fund Transfer program (EFT) or Electronic Invoice (e-Bill) program and signed up

to view and receive policy forms electronically on CWEB (e-Policy) to qualify for the Green Discount? ___ Yes ___ No 21. Are you a AAA Member? ___ Yes ___ No If yes, please provide your Member ID Number: and the Year you joined: ________. 22. If your annual policy premium is paid in full, you are eligible to receive the Paid-In-Full Discount. The following exceptions apply: (1) National Standard and Named Non-Owned Policies (2) Finance company payments 23. If you have resided at the same residence for 7 or more years, or your policy is submitted to Commerce at least 7 days prior to

the effective date, you may qualify for the Shop Smart Discount. The following exceptions apply: (1) You were insured by Commerce within the last 6 months (2) There has been a lapse in coverage within the last 3 years 24. Is this vehicle used in a Car/Ride Sharing program, leased or loaned to others for Compensation, or used in any capacity to

transport passengers for a fee? ___Yes ___No _____________________________________________________________________________________________________________ I declare that all the statements contained in this Supplemental Application are complete and true to the best of my knowledge as of this date. I understand that the company may exchange payment of premium information and accident or claim information with my previous automobile insurance company. _____________________________________________ ____________________________________ Signature of Applicant Date and Time TO BE COMPLETED BY PRODUCER: The information contained in this application is as told to me by the applicant and is true and complete to the best of my knowledge. _____________________________________________ ____________________________________ Signature of Producer Date and Time IF THIS APPLICATION IS BEING ELECTRONICALLY TRANSMITTED, THE FOLLOWING MUST ALSO BE COMPLETED: I agree to be bound by this electronic record and it shall have the same legal force and effect as the written application. _______________________________________ _____________________________________ Applicant’s Name Date

“Ways To Save” Guide Consumer Notification

In accordance with Massachusetts General Laws, we, The Commerce Insurance Company, are required to provide you, the consumer, with the following required consumer information guide: “Your Consumer Guide – Ways To Save on your Automobile Insurance” (“Ways to Save Guide”). The “Ways to Save Guide” is important for all policyholders as it provides a detailed description of compulsory coverages, optional coverages, and ways to lower your premium. In addition, it provides important information to help consumers understand how driving records impact insurance premiums. You may choose to receive the “Ways to Save Guide” either electronically, by accessing our company website at www.commerceinsurance.com, you may email us at [email protected], or you may contact The Commerce Insurance Company at 1-800-922-8276 extension 14414 if you would like to receive a free paper copy. If you have any questions regarding the “Ways to Save Guide”, please contact The Commerce Insurance Company at 1-800-922-8276 extension 14414.

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CIC-2115 (12/14) (See Reverse Page for Required Applicant Signature) Page 1 of 2



Named Insured

Mailing Address







______ < or = 20/60 ______ 100/100 to <250/500 ______ 25/50 to <50/50 ______ > or = 250/500 ______ 50/50 to <100/100





CIC-2115 (12/14) Page 2 of 2









(12/14)

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COVERAGE SELECTIONS PAGE This page and any attached endorsements form a part of your policy

This policy is issued by: The Commerce Insurance Company [INSERT CIC LOGO] Webster, MA 01570-0758

www.Commerceinsurance.com

Item 1: This policy is issued to: Massachusetts Personal Automobile Policy Number: Agent:

Item 2: This policy is in effect from: to (12:01 A.M Eastern Standard Time)

Item 3: Description of your Auto: AUTO

AUTO

Item 4: This policy provides only the coverages for which a premium charge is shown:

Coverages, Parts 1-12 AUTO AUTO

COMPULSORY INSURANCE

LIMITS

Deductible

Annual

Premium Adjusted Premium LIMITS

Deductible Annual

Premium Adjusted Premium

1 Bodily Injury To Others $ per Person

$ per Accident

None $ $ $ per Person

$ per Accident

None $ $

2 Personal Injury Protection $ per Person

$ __ yourself __ yourself and household members

$ $ $ per Person


$ $

3 Bodily Injury Caused By An Uninsured Auto (Compulsory Limits $20,000 / $40,000)

$ per Person

$ per Accident


$ per Accident

None $ $

4 Damage To Someone Else’s Property (Compulsory Limits $5,000)

$ per Accident

None $ $ $ per Accident

None $ $

OPTIONAL INSURANCE 5 Optional Bodily Injury To

Others $ per Person

$ per Accident


$ per Accident

None $ $

6 Medical Payments $ per Person


None $ $

7 Collision Actual Cash Value $ $ $ Actual Cash Value $ $ $ 8 Limited Collision Actual Cash Value $ $ $ Actual Cash Value $ $ $ 9 Comprehensive Actual Cash Value $ $ $ Actual Cash Value $ $ $ 10 Substitute Transportation Up to $ a day,

maximum $

None $ $ Up to $ a day, maximum $

None $ $

11 Towing and Labor Up to $ for each disablement

None $ $ Up to $ for each disablement

None $ $

12 Bodily Injury Caused By An Underinsured Auto

$ per Person

$ per Accident


$ per Accident

None $ $

MERIT RATING PLAN Premium Adjustment $ $ Premium Adjustment $ $

PREMIUM (per AUTO) AUTO $ $ AUTO $ $

TOTAL PREMIUM (POLICY) $ Disappearing Deductible Credits as of xx/xx/xxxx: $x

DISCOUNTS Account

Age 65 and older

Annual Mileage

Anti Theft

Good Student

MCD

Shop Smart

Student Away

Motorcycle Training

Pay Plan

Smart Driver

Clean in 3

Welcome Back

AUTO

AUTO

REFER TO OTHER SIDE FOR ADDITIONAL INFORMATION

PAGE 1 of X (Note: For policies with 3 or 4 autos, there will be 2 of this page)

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Item 5: Principal Place of Garaging Item 6: Secured Lender/Lessor – Additional Insured, if Rented Auto AUTO AUTO AUTO AUTO

OPERATOR INFORMATION

Op No.

Operator Name

Date of

Birth

License Number

Lic.

State

Clean in

Three

CIC Merit

Rating

Date First Licensed

Driver T=Trning S=Smart B=Both

Student G=Good A=Away B=Both

Def Op Y/N

Operator Status O=Occasional, P=Principal,

E=Excluded, M=Military

Auto Motorcycle V1 V2 V3 V4 1 2 3 4 5 6

Identification Numbers of Endorsements Forming a Part of This Policy: Additional Information:

MERIT RATING PLAN

The Merit Rating Plan premium adjustment for each auto is based on the driving records of the operators listed on your policy. Premium adjustments can result from incident-free driving, or from a Merit Rating Board report of an at-fault accident or traffic law violation during the five year period immediately preceding the policy effective date. The Merit Rating Board code and class of each operator are used in assigning the operators to the autos in the manner described in the rating manual. Check carefully that all operators of your auto(s) are shown. Your failure to list a household member or any individual who customarily operates your auto may have very serious consequences. NOTICE: You must notify us of changes that have occurred prior to the renewal of this policy and during the policy period. It is a crime to knowingly provide false or fraudulent information for the purpose of defrauding an insurance company. If you or someone else on your behalf has knowingly given us false, deceptive, misleading or incomplete information and if such false, deceptive, misleading or incomplete information increases our risk of loss, we may refuse to pay claims under any or all of the Optional Insurance Parts and we may cancel your policy. Such information includes the description and the place of garaging of the vehicle(s) to be insured, the names of all household members and customary operators required to be listed and the answers given above for all listed operators. We may also limit our payments under Part 3 and Part 4. Check to make certain that you have correctly listed all operators and the completeness of their previous driving records. The Merit Rating Board may verify the accuracy of the previous driving records of all listed operators. We will not pay for a collision or limited collision loss for an accident which occurs while your auto is being operated by a household member who is not listed as an operator on your policy. Payment is withheld when the household member, if listed, would require the payment of additional premium on your policy because the household member would be classified as an inexperienced operator or would require payment of additional premium on your policy under the Merit Rating Plan. Auto

Rating Class

Prem. Town

Stat Class

Risk Type

Age

HT CMP

Annual Mileage

Risk Level

Years Lic Group

MR Group

CIC Loy Group

AAA Loy Group

Comp Sym

Coll Sym

Liab Sym

PIP/MP Sym

1 2 3 4

CO Batch Seq Rep Curr Dt Run Seq End No Last Run DT Rate Type HH Level EDF USE Countersigned by Authorized Agent

PAGE X of X (Note: There will only be one of this page per policy)

(12/14)







AUTO




LIMITS Deductible

Annual Premium

Adjusted Premium

LIMITS

Deductible Annual



$ per Accident


$ per Accident

None $ $



$ $ $ per Person


$ $


$ per Person

$ per Accident


$ per Accident

None $ $


$ per Accident


None $ $


Others $ per Person

$ per Accident


$ per Accident

None $ $



None $ $


maximum $


None $ $



None $ $


$ per Person

$ per Accident


$ per Accident

None $ $



TOTAL PREMIUM (POLICY) $

Disappearing Deductible Credits as of xx/xx/xxxx: $x

DISCOUNTS Account

Age 65 and older

Annual Mileage

Anti Theft

Good Student

MCD

Shop Smart

Student Away

Motorcycle Training

Pay Plan

Smart Driver

Clean in 3

Welcome Back

AUTO

AUTO



(12/14)



Op No.

Operator Name

Date of

Birth

License Number

Lic.

State

Clean in

Three

CIC Merit

Rating

Date First Licensed



Def Op Y/N





MERIT RATING PLAN


Rating Class

Prem. Town

Stat Class

Risk Type

Age

HT CMP

Annual Mileage

Risk Level

Years Lic Group

MR Group

CIC Loy Group

AAA Loy Group

Comp Sym

Coll Sym

Liab Sym

PIP/MP Sym

1 2 3 4



MASSACHUSETTS PRIVATE PASSENGER AUTOMOBILE INSURANCE MANUAL

TC - 1 Copyright, The Commerce Insurance Company, 2014

TABLE OF CONTENTS

Page

SECTION I - GENERAL RULES

Rule No. 1 Massachusetts Automobile Insurance Policy - Eligibility ............................................ 1 2 Coverages and Limits ................................................................................................. 1 3 Mandatory Offer of Coverage ..................................................................................... 2 4 Standard Procedures .................................................................................................. 2 5 Residence and Location ............................................................................................. 4 6 Out-of-State Garaging ................................................................................................. 4 7 Policy Period ............................................................................................................... 4 8 Changes ...................................................................................................................... 5 9 Motor Vehicle Registration Certificates ...................................................................... 5 10 Certified Risks - Financial Responsibility Laws .......................................................... 5 11 Premium Calculation Rule .......................................................................................... 7 12 Whole Dollar Premium Rule ....................................................................................... 9 13 Installment Payment of Premiums .............................................................................. 10 14 Deposit Premium Rule ................................................................................................ 10 15 Employers Subject to Massachusetts Workers Compensation Act ........................... 10 16 Deductibles - Parts 7, 8 and 9..................................................................................... 10 17 Substitute Transportation ............................................................................................ 10 18 Termination of Insurance ............................................................................................ 10 19 Discounts and Credits ................................................................................................. 16 20 Vehicle Liability Symbols ............................................................................................ 20 21 Model Year Rating ...................................................................................................... 20 22 Non-Symbolled Vehicles and Rating Vehicles for which Symbols are not shown On the Rate Pages ...................................................................................................... 21 23 High-Theft Vehicles ..................................................................................................... 23 24 Extra-Risk Rating (Collision and Comprehensive) ..................................................... 23 25 Vehicle Series Rating .................................................................................................. 24 26 Additional Company Rating Rules .............................................................................. 25 Years Licensed .......................................................................................................... 25 Risk Factor .................................................................................................................. 26 Driver – Vehicle Factor................................................................................................ 110 Loyalty Plus Factor ...................................................................................................... 112 HH Level Factor………………………………………………………………………… .. 205 Hardship Accommodation ........................................................................................... 422

SECTION II - PRIVATE PASSENGER AUTOMOBILES Rule No. 27 Private Passenger Definition....................................................................................... 422 28 Private Passenger Classifications .............................................................................. 422 29 Reserved For Future Use ........................................................................................... 425 30 Personal Injury Protection - Deductible Form ............................................................ 425 31 Transportation of Fellow Employees .......................................................................... 425


7 Copyright, The Commerce Insurance Company, 2014

RULE 11. PREMIUM CALCULATION RULE The term MAIP premium below refers to MAIP Rates effective 10/1/13.

Please note, for detailed calculation descriptions and factors within a step please see the specific sections of this manual.

Table A

STEP Coverage Parts Part 1 Part 2 Part 3 Part 4 Part 5 Part 6 Part 7 Part 8 Part 9Part 10

Part 11

Part 12 Total

1 Base Rate by Territory Code and Class

2 Limited Collision Factor x

3 Liability/Model Year Symbol Factor x x x x x x x x

4 Base Rate by Limit

5 Increased Limits Factor x x x x

6 Deductible Factor x x x x

7 Glass Deductible x

8 Waiver of Deductible +

9 Extra Risk Factor x x

10 Years Licensed Factor x x x x x x x x x x x x

11 Risk Factor x x x x x x x x x x x x

12 Driver to Vehicle (include deferred driver) Factor x x x x x x x x x x x x

13 Household Level Factor x x x x x x x x x x x x

14 Loyalty Plus Factor x x x x x x x x x x x x

15 Annual Mileage Discount x x x x x x x x x

16 Multi-Car Discount x x x x x x x

17 Anti-Theft Discount x

18 Account Discount x x x x x x x x x x x x

19 Shop Smart Credit Discount x x x x x x x x x x x x

20 Welcome Back Credit x x x x x x x x x x x x

21 Group Discount x x x x x x x x x x x x

22 Good Student Discount x x x x x x x x x x x x

23 Student Away From Home Discount x x x x x x x x x x x x

24 Smart Driver Discount x x x x x x x x x x x x

25 Green Discount x x x x x x x x x x x x

26 Clean in Three Discount x x x x

27 Senior Discount x x x x x x x x x x x x

28 Merit Rating Adjustment + + + + + +

29 Subtotal + + + + + + + + + + + +

30 Coverage Package Capping Factor

31 Sumproduct of Step 29 and Step 30

32 MAIP Premium for selected Coverages in Coverage Package33 Capping Amount (Step 29)*min[(Step 32 divided by Step 31)-1,0]*(Step 30)

34 New Subtotal (Step 29+Step 33)

35 Auto Loan/Lease Coverage x x

36 Paid In Full Discount x x x x x x x x x x x x

37 Accident Forgiveness x x x x x x x x x x x x

38 Commerce Elite Package Endorsement +

39 Commerce Enhancer Package Endorsement +

Coverage Premium

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Table A

STEP Covera


2 Limited Collision Factor

3 Liability/Model Year Symbol Factor


5 Increased Limits Factor

6 Deductible Factor

7 Glass Deductible

8 Waiver of Deductible

9 Extra Risk Factor

10 Years Licensed Factor

11 Risk Factor

12 Driver to Vehicle (include deferred driver) Factor

13 Household Level Factor

14 Loyalty Plus

15 Annual Mileage Discount

16 Multi-Car Discount

17 Anti-Theft Discount

18 Account Discount

19 Shop Smart Discount

20 Group Discount and Affinity/Marketing Partnership Discount

21 Good Student Discount

22 Student Away From Home Discount

23 Smart Driver Discount

24 Green Discount

25 Clean in Three Discount

26 Senior Discount

27 Merit Rating Adjustment

28 Subtotal



31 MAIP Premium for selected Coverages in Coverage Packag

32Capping Amount (Step 28)*min[(Step 31 divided by Step 301,0]*(Step 29)


34 Auto Loan/Lease Coverage

35 Paid In Full Discount

36 Accident Forgiveness

37 Commerce Elite Package Endorsement

38 Commerce Enhancer Package Endorsement

Coverage



Explanation of Steps 28-33: MAIP Capping (compliance with DOI Bulletin 2009-13) In order to comply with the Massachusetts Division of Insurance Bulletin 2009-13, Rating Steps 29-34 as found in Table A of Rule 11 ensure that for the “Coverage Package Premium not to Exceed MAIP Premium in Effect October 1, 2013” identified in Bulletin 2009-13, Exhibit 1, Commerce will charge no more than the MAIP premium for private passenger type vehicles as defined in Rule 29. The MAIP Capping calculation does not apply to miscellaneous type vehicles, including antique motor cars, antique motorcycles, motorcycles (incl. motor scooters, mopeds and similar motor vehicles), trailers and motor homes/camper bodies. This procedure will be calculated as follows: Step 29: Derive the manually rated premium by applying Steps 1 through 27 in Table A as found in Rule 11. This will be referred to in future rating steps as “Uncapped Premium” Step 30: Determine the Coverage Package Capping Factor from Tables B.1 –B.11, C, and D as found in Rule 11 applicable to each coverage based on the coverage limit selection for the rated vehicle. A factor equal to “1.000” will reflect that the Coverage Part falls within the definition of Bulletin 2009-13, Exhibit 1 and is subject to premium capping, a “0.000” (zero) will reflect that the Coverage Part is not included within the definition of Bulletin 2009-13, Exhibit 1 and is not subject to premium capping. Step 31: Multiply each Coverage Part’s Uncapped Premium by the Coverage Package Capping Factor as determined in Step 30. Add all Coverage Parts together. This total will be called “Applicable Capped Premium” for the Rated Vehicle. Step 32: Determine the applicable MAIP Premium for all Coverage Parts where the Coverage Package Capping Factor, as determined in Step 30, equals “1.000”. Sum all of the Coverage Part’s premium. This will be referred to in future rating steps as “Applicable MAIP Premium” Step 33: Determine the necessary Premium reduction for each Coverage Part using the formula:

Step 29 * MINIMUM ( [ Step 32 ÷ Step 31 ] – 1.00 , 0.00 ) * Step 30

or in words:

Uncapped Premium x MINIMUM of [ (A) Applicable MAIP Premium ÷ Applicable Capped Premium minus 1.00 ; (B) 0.000 (zero) ] x Coverage Package Capping Factor Note: This value will always be either a Negative Amount or Zero for each Coverage Part. Step 34: Step 29 + Step 33

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Tables B.1 through B.11, C, and D

RULE 12. PREMIUM ROUNDING RULE The premium for each exposure will be rounded, separately for each coverage provided by the policy, as follows: 1. Steps 1 through 26, as provided in Rule 11, will be rounded to the penny after each step. 2, Step 27, 28 and 35-39 will be rounded to the nearest whole dollar, For whole dollar rounding, a premium involving $0.50 or more will be rounded to the next whole dollar at the end of each step. This does not apply to Part 5, 20/40 limits and Part 6, $5,000 limit where rates may be used or rounded to the lower whole dollar. This procedure will apply to all interim premium adjustments, including endorsements or cancellations at the request of the insured. In the case of cancellation by Commerce, the return premium will be carried to the next higher whole dollar.

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Table A


Part 11

Part 12 Total



















19 Shop Smart Credit x x x x x x x x x x x x










29 Subtotal + + + + + + + + + + + +










Coverage Premium



Explanation of Steps 28-33: MAIP Capping (compliance with DOI Bulletin 2009-13)

In order to comply with the Massachusetts Division of Insurance Bulletin 2009-13, Rating Steps 29-34 as found in Table A of Rule 11 ensure that for the “Coverage Package Premium not to Exceed MAIP Premium in Effect October 1, 2013” identified in Bulletin 2009-13, Exhibit 1, Commerce will charge no more than the MAIP premium for private passenger type vehicles as defined in Rule 29. The MAIP Capping calculation does not apply to miscellaneous type vehicles, including antique motor cars, antique motorcycles, motorcycles (incl. motor scooters, mopeds and similar motor vehicles), trailers and motor homes/camper bodies. This procedure will be calculated as follows:

Step 29: Derive the manually rated premium by applying Steps 1 through 27 in Table A as found in Rule 11. This will be referred to in future rating steps as “Uncapped Premium”

Step 30: Determine the Coverage Package Capping Factor from Tables B.1 –B.11, C, and D as found in Rule 11 applicable to each coverage based on the coverage limit selection for the rated vehicle. A factor equal to “1.000” will reflect that the Coverage Part falls within the definition of Bulletin 2009-13, Exhibit 1 and is subject to premium capping, a “0.000” (zero) will reflect that the Coverage Part is not included within the definition of Bulletin 2009-13, Exhibit 1 and is not subject to premium capping.

Step 31: Multiply each Coverage Part’s Uncapped Premium by the Coverage Package Capping Factor as determined in Step 30. Add all Coverage Parts together. This total will be called “Applicable Capped Premium” for the Rated Vehicle.

Step 32: Determine the applicable MAIP Premium for all Coverage Parts where the Coverage Package Capping Factor, as determined in Step 30, equals “1.000”. Sum all of the Coverage Part’s premium. This will be referred to in future rating steps as “Applicable MAIP Premium”

Step 33: Determine the necessary Premium reduction for each Coverage Part using the formula:


or in words:

Uncapped Premium x MINIMUM of [ (A) Applicable MAIP Premium ÷ Applicable Capped Premium minus 1.00 ; (B) 0.000 (zero) ] x Coverage Package Capping Factor

Note: This value will always be either a Negative Amount or Zero for each Coverage Part.

Step 34: Step 29 + Step 33




RULE 12. PREMIUM ROUNDING RULE

The premium for each exposure will be rounded, separately for each coverage provided by the policy, as follows: 1. Steps 1 through 26, as provided in Rule 11, will be rounded to the penny after each step.

2, Step 27, 28 and 35-39 will be rounded to the nearest whole dollar,

For whole dollar rounding, a premium involving $0.50 or more will be rounded to the next whole dollar at the end of each step. This does not apply to Part 5, 20/40 limits and Part 6, $5,000 limit where rates may be used or rounded to the lower whole dollar.

This procedure will apply to all interim premium adjustments, including endorsements or cancellations at the request of the insured. In the case of cancellation by Commerce, the return premium will be carried to the next higher whole dollar.



RULE 19. DISCOUNTS and CREDITS A. Multi-Car Private Passenger Automobile An individual or lawfully married individuals residing in the same household, who own(s) two or more automobiles and purchases coverage from Commerce for at least two such automobiles, shall be entitled to a reduction of the premium applicable to Coverage Parts 1, 2, 4, 5, 7, 8 and 9. At least two of the automobiles must be private passenger vehicles as defined in Rule 27, except that vehicles classified as antiques are not eligible. Refer to Miscellaneous Rating Factors page for applicable discount. Motorcycle An individual or lawfully married individuals residing in the same household, who own(s) two or more automobiles with at least one motorcycle and purchases coverage from Commerce for at least two such automobiles and one motorcycle, shall be entitled to a reduction of the premium applicable to Coverage Parts 1, 2, 4, 5, 7, 8, and 9. At least two of the automobiles must be private passenger vehicles as defined in Rule 27, except that vehicles classified as antiques are not eligible. At least one of the automobiles must be motorcycles as defined in Rule 44. Refer to Miscellaneous Rating Factors page for applicable discount. B. Account Discount The Account Discount applies if a named insured:

(1) purchases a Personal Automobile Insurance Policy from Commerce, (eligible policies must include vehicles of the private passenger type as defined in Rule 27, motorcycles, or motor homes/camper bodies as defined in Rule 39) and number (2) or (3) below are met. Vehicles classified as antiques, and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible.

(2) maintains a Massachusetts Property Insurance Policy on their principal place of residence with Commerce or

Citation, the FAIR Plan, or another eligible company. The property policy shall include a Homeowner, Condominium (not rented to others), or Renters policy, but shall not include a dwelling/fire only policy.

(3) maintains a qualifying MAPFRE life insurance policy(ies). A qualifying MAPFRE life insurance policy is an

active individual term life or individual whole life policy within the policyholder’s account that is owned by the named insured or a related household member.

(4) maintains a qualifying Commerce or Citation Personal Umbrella policy or endorsement

If the above criteria are met:

Only the largest single discount shall apply; andA discount of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders as follows:

Description

No MAPFRE Life

Policy & No Commerce/

Citation Umbrella

MAPFRE Life Policy

(No Commerce/ Citation

Umbrella)

Commerce/ Citation

Umbrella Policy

(No life)

Commerce/ Citation

Umbrella Policy (Including

MAPFRE Life) Commerce Auto only 0% 2% 2% 4%Commerce Auto and Home (HO 2, 3) 11% 13% 13% 15% Commerce Auto and Home (HO 15) 13% 15% 15% 17% Commerce Auto and Home (HO 4, 6) 9% 11% 11% 13% Property with the Fair Plan 2% 4% 4% 6% Property with Other Carrier 5% 7% 7% 9%

C. Anti-Theft Device Refer to Anti-Theft Devices Standards and Discounts Section.



D. Class 15 Premiums otherwise applicable to class 10 automobiles shall be reduced by 25% for insureds age 65 or older. If the principal operator becomes age 65 during the policy year, the class 10 premium will be adjusted as of that date. The premium adjustment will be credited to the policyholder on that date unless that date is within sixty days of the expiration date of the policy, in which case the adjustment may be credited to the renewal policy. A notice of this classification change must be sent, or made electronically available to the policyholder either prior to or with the proposed adjustment. The policyholder is required to notify Commerce of any change in operator usage which would affect entitlement to the discount. The 25% discount is applied to the final premium for each part after all other discounts and rating factors have been completed. It is the last step in the rating process prior to the application of the premium adjustment required under the Merit Rating Plan. E. Annual Mileage Discount A discount of the premium paid for Parts 1, 2, 3, 4, 5, 6, 7, 8 and 12 will be given to eligible policyholders when the annual mileage of the vehicle falls into one of six categories. The discount will be based on: (1) the Years Licensed Group of the operator assigned to that vehicle, (2) the Premium Town Group of the operator assigned to that vehicle and (3) the actual mileage driven in a recent 12 month period as determined by a comparison of two odometer readings, at least six months apart, and not more than 24 months prior to renewal processing or, obtained from Registry of Motor Vehicle information, or (2) if not available, a certification by the insured on the Annual Mileage Discount Form or other paper or on-line forms required by the company. Refer to the Miscellaneous Rating Factors page for the applicable categories and discounts. Eligibility The vehicle must be a private passenger vehicle as defined in Rule 27, except that vehicles classified as antiques

are not eligible. Commerce may request that the applicant for the discount complete the Annual Mileage Discount Form or other paper or on-line form for the verification of eligibility for the discount.

If two odometer readings, at least six months apart are not available to Commerce through the Registry of Motor

Vehicles as set forth above, or if the Annual Mileage Discount Form or other required form is not completed by the insured and provided to the company prior to renewal processing, the vehicle is not eligible for the annual mileage discount

If a vehicle replaces another vehicle which is receiving the discount, the annual mileage of the prior vehicle will be

attributed to the replacement vehicle.

Application of Discount The applicable discount applies to rates otherwise determined for each insured vehicle by coverage, limits

purchased, territory code , driver class, and model year and symbol prior to the application of the premium adjustment required under the Merit Rating Plan.

F. Shop Smart Credit The Shop Smart Credit applies to new business policies provided the following criteria are met: 1. Eligible policyholders must have prior insurance with a company other than Commerce, for a minimum of

6 months; and 2. Eligible policyholders must have no prior lapse in coverage within the last 3 years. If the above two criteria are met and the policyholder has been at the same residence: (1) for 7 or more years; or (2) less than 7 years, and has a policy that was submitted to Commerce at least 7 days prior to the policy effective date, then the Shop Smart Credit will apply. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this discount.

Deleted: Discount

Deleted: Discount

Deleted: discount



Exception: The Welcome Back and Shop Smart Credits are mutually exclusive. If the policy is elgible for the Welcome Back Credit, then the Shop Smart Credit will not apply. The Shop Smart Credit will continue to apply at the first and second renewal term following the first application of this credit. A discount of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders. Refer to the Miscellaneous Rating Factors page for applicable discount. G. Good Student Discount The Good Student Discount applies provided the following criteria are met:

a) The rated operator: 1. Is classified in one of the following inexperienced operator classes: 17, 18, 20, 21, 25 or 26; and 2. Is a full time high school, home study, college, or university student.

b) The rated operator has met one of the following requirements:

1. Is in the upper 20% of his or her class scholastically; or 2. maintains a “B” average or higher, or its equivalent, or if the letter grading system cannot be averaged

then no grade can be below a “B”; or 3. in schools using numerical grade points, such as 4.0, 3.0, 2.0 and 1.0, had an average of at least 3.0

points or it’s equivalent for all subjects combined; or 4. was included on the “Dean’s List”, “Honor Roll” or comparable list indicating scholastic achievement. 5. In the case of home schooling, 2 options are given:

I. a standardized form certified by a 3rd party organization showing evidence that one of the qualifications listed above is satisfied; or

II. evidence of scoring in the upper 20% on an annual national standardized exam. The discount will be applied to Coverage Parts 1, 2, 4, 5, 7, 8, and 9. Refer to the Miscellaneous Rating Factors page for applicable discount. The Good Student Discount cannot be applied in conjunction with the Student Away from Home discount. If the insured is eligible for both discounts, the Student Away from Home discount will apply. H. Student Away from Home Discount The Student Away from Home Discount applies provided the following criteria are met:

a) The rated operator is classified in one of the following inexperienced operator classes: 17, 18, 20, 21, 25 or 26.

b) The rated operator is a student residing at an educational institution over 100 road miles from the automobile’s principal place of garaging.

c) The student does not have regular access to the covered vehicle while at school. The discount will be applied to Coverage Parts 1, 2, 4, 5, 7, 8, and 9. Refer to the Miscellaneous Rating Factors page for applicable discount. The Student Away from Home discount can not be applied in conjunction with the Good Student discount. If the rated operator is eligible for both discounts, the Student Away from Home Discount will apply. I. Paid-in-Full Discount The Paid-in-Full Discount applies to policies where the annual policy premium is paid in full, subject to the following: For new business, payment must be made in full upon down payment. For renewal business, payment must be made in full upon the first installment due date. Exceptions: (1) National Standard and Named Non-owned policies are not eligible for the discount, and; (2) Finance company payments do not qualify for the discount. The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for applicable discount.

Deleted: A

Deleted: Discount

Deleted: upon



J. Smart Driver Discount A Smart Driver Discount will apply if an eligible rated operator has completed a company approved Advanced Driver Training Program or the teenSMART Training Program. The following eligibility rules apply:

1) Vehicle must be a private passenger vehicle as defined in Rule 27. Vehicles classified as antiques, motorcycles, motor homes/campers and miscellaneous motor vehicle types are not eligible.

2) All operator classes are eligible for the discount when the Advanced Driver Training Program is completed. 3) Operator classes 17, 18, 20, 21, 25 & 26 only are eligible for the discount when the teenSMART Training

Program is completed. 4) Discount will apply for the 5 year period from when the course is completed. For teenSMART only, the discount

will apply for the 5 year period from when the course is completed or until the operator reaches class 10, whichever is earlier.

The maximum allowable discount at any given time is 5%, regardless of the number of training programs completed by an individual driver. The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for specific courses and their applicable discounts. K. Green Discount One of the following disounts will apply provided the following criteria are met:

A. EFT/EBill only The EFT/EBill Discount will apply provided the following criterion is met:

The insured is enrolled in either CIC’s Electronic Fund Transfer program (EFT) or Electronic Invoice (EBill) program.

B. Paperless (policy forms only) The Paperless Discount will apply provided the following criterion is met:

The insured must sign up to view and receive their policy forms electronically on CWEB.

C. EFT/EBill and Paperless The EFT/EBill and Paperless Discount will apply provided the following criteria are met:

The insured is enrolled in either CIC’s Electronic Fund Transfer program (EFT) or Electronic Invoice (EBill) program; and

The insured must sign up to view and receive their policy forms electronically on CWEB. Exception: -National Standard and Named Non-owned policies are not eligible for the discount,

- Policies with the Paid in Full Discount are not eligible for this discount under A or C, only B. The Paid in Full discount can only be applied in conjuction with Paperless (policy forms).

The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for applicable discount. L. Clean in Three Discount The Clean in Three Discount will apply provided the following criteria are met: a.) The rated vehicle is subject to the Merit Rating Plan; b.) There are no at-fault accidents or traffic violations attributable to the rated operator during the three years immediately preceding the policy effective date; c.) The rated operator has been licensed for at least three years; and

d.) An electronic copy of the rated operator’s driving experience is made available to Commerce when the rated operator has prior driving experience outside of MA during the Merit Rating Experience Period.

Exceptions: -The rated operator’s Merit Rating points are 00, 98, or 99; -The rated operator’s Merit Rating points are greater than or equal to 5; -The rated operator has one or more days lapse in coverage within the last 12 months. The discount will be applied to Coverage Parts 1, 2, 4, and 7. Refer to the Miscellaneous Rating Factors page for applicable discount. M. Welcome Back Credit The Welcome Back Credit will apply to new business policies, effective 12-1-14 and subsequent, provided the following criteria are met:



a.) Eligible policyholders must have been insured with Commerce previously; and b.) Eligible policyholders must have prior continuous insurance with a company(s) other than Commerce for at

least 6 months but not more than 24 months prior to returning to Commerce; and c.) Eligible policyholders must have no prior lapse in coverage within the last 3 years.

In addition to this credit, eligible policyholders will receive their prior continuous years with Commerce, as noted in Rule 26 D. Exceptions: (1) The policyholder is not eligible for this credit if they were previously insured with Commerce through the MA

Automobile Insurance Plan. (MAIP). (2) The policyholder is not eligible for this credit if they were previously cancelled or non-renewed by Commerce due to Fraud or Underwriting reasons. (DNR, MM1, MM2, MM3, and UNR). (3) The Welcome Back and Shop Smart Credits are mutually exclusive. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this credit. The Welcome Back Credit will continue to apply at the first and second renewal term following the first application of the credit. A credit of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders. Refer to the Miscellaneous Rating Factors page for applicable discount. RULE 20. VEHICLE LIABILITY SYMBOLS To determine the Vehicle Liability Symbols, refer to the current ISO Liability and PIP/Medical Payments Vehicle Rating Plan Manual. For each vehicle listed on the Symbols Pages, two LPMP rating symbols are provided: One applicable to BI and PD Liability coverages, and one applicable to Medical Payments and PIP coverages. The symbols are displayed for each vehicle series, on a vehicle series basis, and apply to all vehicles (all VINs ) in a vehicle series. The LPMP symbols do not vary by model year of vehicle unless otherwise noted. Liability Symbols are supplied by ISO’s 2010 Liability Symbol program. Rating Steps: A. Identify the two LPMP symbols found on the symbols page.* B. Refer to the Liability and Medical Payments Vehicle Rating Factor Table to determine the LPMP vehicle rating factors association with each symbol. *If a symbol can not be determined, use an LPMP rating factor of 1.00 for both Liability and Medical Payments/PIP. LPMP factors do not apply to risks rated in accordance with Rule 49. Named Non-owned. RULE 21. MODEL YEAR RATING A. Model Year Defined The model year of an auto is used in rating physical damage coverage on an actual cash value basis. The model year of the auto is the year assigned by the auto manufacturer. The model year of rebuilt or structurally altered autos is determined by the model year of the chassis. B. Rating of Model Years

1. 1990 and Later Model Years: Refer to the Miscellaneous Rating Factors section and apply the model year,

symbol and coverage factor to the earliest model year $500 deductible rate displayed in the Rate Section to obtain the actual cash value premium.

2. 1989 and Earlier Model Years:

a. Refer to the Miscellaneous Rating Factors section and apply the earliest model year, symbol and coverage factor to the earliest model year $500 deductible rate for the same symbol displayed in the Rate Section to obtain the actual cash value premium.



RULE 19. DISCOUNTS and CREDITS

A. Multi-Car

Private Passenger Automobile An individual or lawfully married individuals residing in the same household, who own(s) two or more automobiles and purchases coverage from Commerce for at least two such automobiles, shall be entitled to a reduction of the premium applicable to Coverage Parts 1, 2, 4, 5, 7, 8 and 9. At least two of the automobiles must be private passenger vehicles as defined in Rule 27, except that vehicles classified as antiques are not eligible. Refer to Miscellaneous Rating Factors page for applicable discount.

Motorcycle An individual or lawfully married individuals residing in the same household, who own(s) two or more automobiles with at least one motorcycle and purchases coverage from Commerce for at least two such automobiles and one motorcycle, shall be entitled to a reduction of the premium applicable to Coverage Parts 1, 2, 4, 5, 7, 8, and 9. At least two of the automobiles must be private passenger vehicles as defined in Rule 27, except that vehicles classified as antiques are not eligible. At least one of the automobiles must be motorcycles as defined in Rule 44. Refer to Miscellaneous Rating Factors page for applicable discount.

B. Account Discount

The Account Discount applies if a named insured:


(2) maintains a Massachusetts Property Insurance Policy on their principal place of residence with Commerce or Citation, the FAIR Plan, or another eligible company. The property policy shall include a Homeowner, Condominium (not rented to others), or Renters policy, but shall not include a dwelling/fire only policy.

(3) maintains a qualifying MAPFRE life insurance policy(ies). A qualifying MAPFRE life insurance policy is an active individual term life or individual whole life policy within the policyholder’s account that is owned by the named insured or a related household member.



Only the largest single discount shall apply; andA discount of the premium applicable for Coverage Parts1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders as follows:

Description No MAPFRE Life Policy &

No Commerce/ Citation Umbrella

MAPFRE Life Policy


Umbrella)

Commerce/ Citation

Umbrella Policy

(No life)

Commerce/ Citation


MAPFRE Life) Commerce Auto only 0% 2% 2% 4% Commerce Auto and Home (HO 2, 3) 11% 13% 13% 15% Commerce Auto and Home (HO 15) 13% 15% 15% 17% Commerce Auto and Home (HO 4, 6) 9% 11% 11% 13% Property with the Fair Plan 2% 4% 4% 6% Property with Other Carrier 5% 7% 7% 9%

C. Anti-Theft Device

Refer to Anti-Theft Devices Standards and Discounts Section.



D. Class 15

Premiums otherwise applicable to class 10 automobiles shall be reduced by 25% for insureds age 65 or older. If the principal operator becomes age 65 during the policy year, the class 10 premium will be adjusted as of that date. The premium adjustment will be credited to the policyholder on that date unless that date is within sixty days of the expiration date of the policy, in which case the adjustment may be credited to the renewal policy. A notice of this classification change must be sent, or made electronically available to the policyholder either prior to or with the proposed adjustment. The policyholder is required to notify Commerce of any change in operator usage which would affect entitlement to the discount.

The 25% discount is applied to the final premium for each part after all other discounts and rating factors have been completed. It is the last step in the rating process prior to the application of the premium adjustment required under the Merit Rating Plan.

E. Annual Mileage Discount

A discount of the premium paid for Parts 1, 2, 3, 4, 5, 6, 7, 8 and 12 will be given to eligible policyholders when the annual mileage of the vehicle falls into one of six categories. The discount will be based on: (1) the Years Licensed Group of the operator assigned to that vehicle, (2) the Premium Town Group of the operator assigned to that vehicle and (3) the actual mileage driven in a recent 12 month period as determined by a comparison of two odometer readings, at least six months apart, and not more than 24 months prior to renewal processing or, obtained from Registry of Motor Vehicle information, or (2) if not available, a certification by the insured on the Annual Mileage Discount Form or other paper or on-line forms required by the company.

Refer to the Miscellaneous Rating Factors page for the applicable categories and discounts.

Eligibility

The vehicle must be a private passenger vehicle as defined in Rule 27, except that vehicles classified as antiques are not eligible. Commerce may request that the applicant for the discount complete the Annual Mileage Discount Form or other paper or on-line form for the verification of eligibility for the discount.

If two odometer readings, at least six months apart are not available to Commerce through the Registry of Motor Vehicles as set forth above, or if the Annual Mileage Discount Form or other required form is not completed by the insured and provided to the company prior to renewal processing, the vehicle is not eligible for the annual mileage discount

If a vehicle replaces another vehicle which is receiving the discount, the annual mileage of the prior vehicle will be attributed to the replacement vehicle.

Application of Discount

The applicable discount applies to rates otherwise determined for each insured vehicle by coverage, limits purchased, territory code , driver class, and model year and symbol prior to the application of the premium adjustment required under the Merit Rating Plan.

F. Shop Smart Credit

The Shop Smart Credit applies to new business policies provided the following criteria are met:

1. Eligible policyholders must have prior insurance with a company other than Commerce, for a minimum of6 months; and

2. Eligible policyholders must have no prior lapse in coverage within the last 3 years.

If the above two criteria are met and the policyholder has been at the same residence:

(1) for 7 or more years; or (2) less than 7 years, and has a policy that was submitted to Commerce at least 7 days prior to the policy effective date,

then the Shop Smart Credit will apply. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this discount.



Exception: The Welcome Back and Shop Smart Credits are mutually exclusive. If the policy is elgible for the Welcome Back Credit, then the Shop Smart Credit will not apply.

The Shop Smart Credit will continue to apply at the first and second renewal term following the first application of this credit.

A discount of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders. Refer to the Miscellaneous Rating Factors page for applicable discount.

G. Good Student Discount

The Good Student Discount applies provided the following criteria are met:

a) The rated operator:1. Is classified in one of the following inexperienced operator classes: 17, 18, 20, 21, 25 or 26; and2. Is a full time high school, home study, college, or university student.

b) The rated operator has met one of the following requirements:1. Is in the upper 20% of his or her class scholastically; or2. maintains a “B” average or higher, or its equivalent, or if the letter grading system cannot be averaged

then no grade can be below a “B”; or3. in schools using numerical grade points, such as 4.0, 3.0, 2.0 and 1.0, had an average of at least 3.0

points or it’s equivalent for all subjects combined; or4. was included on the “Dean’s List”, “Honor Roll” or comparable list indicating scholastic achievement.5. In the case of home schooling, 2 options are given:


II. evidence of scoring in the upper 20% on an annual national standardized exam.

The discount will be applied to Coverage Parts 1, 2, 4, 5, 7, 8, and 9. Refer to the Miscellaneous Rating Factors page for applicable discount.

The Good Student Discount cannot be applied in conjunction with the Student Away from Home discount. If the insured is eligible for both discounts, the Student Away from Home discount will apply.

H. Student Away from Home Discount

The Student Away from Home Discount applies provided the following criteria are met:

a) The rated operator is classified in one of the following inexperienced operator classes: 17, 18, 20, 21, 25 or26.

b) The rated operator is a student residing at an educational institution over 100 road miles from the automobile’sprincipal place of garaging.

c) The student does not have regular access to the covered vehicle while at school.


The Student Away from Home discount can not be applied in conjunction with the Good Student discount. If the rated operator is eligible for both discounts, the Student Away from Home Discount will apply.

I. Paid-in-Full Discount

The Paid-in-Full Discount applies to policies where the annual policy premium is paid in full, subject to the following:

For new business, payment must be made in full upon down payment. For renewal business, payment must be made in full upon the first installment due date.

Exceptions: (1) National Standard and Named Non-owned policies are not eligible for the discount, and; (2) Finance company payments do not qualify for the discount. The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for applicable discount.



a.) Eligible policyholders must have been insured with Commerce previously; and b.) Eligible policyholders must have prior continuous insurance with a company(s) other than Commerce for at

least 6 months but not more than 24 months prior to returning to Commerce; and c.) Eligible policyholders must have no prior lapse in coverage within the last 3 years.


Automobile Insurance Plan. (MAIP). (2) The policyholder is not eligible for this credit if they were previously cancelled or non-renewed by Commerce due to Fraud or Underwriting reasons. (DNR, MM1, MM2, MM3, and UNR). (3) The Welcome Back and Shop Smart Credits are mutually exclusive. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this credit. The Welcome Back Credit will continue to apply at the first and second renewal term following the first application of the credit. A credit of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders. Refer to the Miscellaneous Rating Factors page for applicable discount. RULE 20. VEHICLE LIABILITY SYMBOLS To determine the Vehicle Liability Symbols, refer to the current ISO Liability and PIP/Medical Payments Vehicle Rating Plan Manual. For each vehicle listed on the Symbols Pages, two LPMP rating symbols are provided: One applicable to BI and PD Liability coverages, and one applicable to Medical Payments and PIP coverages. The symbols are displayed for each vehicle series, on a vehicle series basis, and apply to all vehicles (all VINs ) in a vehicle series. The LPMP symbols do not vary by model year of vehicle unless otherwise noted. Liability Symbols are supplied by ISO’s 2010 Liability Symbol program. Rating Steps: A. Identify the two LPMP symbols found on the symbols page.* B. Refer to the Liability and Medical Payments Vehicle Rating Factor Table to determine the LPMP vehicle rating factors association with each symbol. *If a symbol can not be determined, use an LPMP rating factor of 1.00 for both Liability and Medical Payments/PIP. LPMP factors do not apply to risks rated in accordance with Rule 49. Named Non-owned. RULE 21. MODEL YEAR RATING A. Model Year Defined The model year of an auto is used in rating physical damage coverage on an actual cash value basis. The model year of the auto is the year assigned by the auto manufacturer. The model year of rebuilt or structurally altered autos is determined by the model year of the chassis. B. Rating of Model Years







D. Loyalty Plus Factor

1. The Loyalty Plus Factor (LPF) will be applied on a vehicle level basis to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. This factor will apply to all vehicle types. The LPF will be updated (1) upon renewal, and (2) with any endorsement activity that impacts Merit Rating and/or Years Licensed. The LPF will apply to a vehicle given thespecific combination of the following risk characteristics of the vehicle being rated:

a. The applicable Years Licensed group for the assigned driver.b. The applicable Merit Rating Group as determined by the Merit Rating Code reported by the Merit Rating Board

for the assigned driver. c. The applicable Loyalty group which is determined by the number of consecutive years the listed driver has

maintained uninterrupted, with no lapse, Personal Automobile coverage with Commerce. If the policyholderis eligible for the Welcome Back Credit, their prior continuous years with Commerce will be counted.

d. Presence of AAA Membership, including the number of years the insured has been a AAA Member.

2. Apply the appropriate Loyalty Plus Factor (LPF) shown below in accordance to Rule 11, Premium Calculation.

Loyalty Plus Group Definitions

Years Licensed

Years Licensed

Group

Merit Rating Code

Merit Rating Group

# of Years

with CIC

CIC Loyalty Group

# of Years with AAA

AAA Loyalty Group

0 – 2 1 99 1 0 0 Non – Member 99 3 – 5 2 98 – 00 2 1 1 0 06 – 18 3 01 – 04 3 2 2 1 119 - 42 4 05 – 45 4 3 3 2 2

43+ 5 4 4 3 3 5 5 4 4 6 6 5 5 7 7 6+ 6 8 8 9 9 10+ 10



F. Hardship Accommodation

If the removal of a deceased rated operator during the middle of a policy term, or subsequent to a renewal offer having been issued for an upcoming policy term, will result in an increase in premium, Commerce may for all impacted policies, upon request, defer application of the parts of Rule 11 that will result in the increase in premium until the next renewal term.

SECTION II - PRIVATE PASSENGER AUTOMOBILES

RULE 27. PRIVATE PASSENGER DEFINITION

A. A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire.

B. A motor vehicle that is a pick-up or van, that is owned or leased under contract for a continuous period of at least 12 months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and

1. has a gross vehicle weight rating of less than 10,000 pounds or has a rating symbol assigned to it by the Insurance Services Office (ISO), and

2. is not used for the delivery or transportation of goods or materials unless such use is incidental to theinsured’s business of installing, maintaining or repairing furnishings or equipment.

C. Gross Vehicle Weight Rating means the value specified by the manufacturer as the loaded weight of a single vehicle.

D. An eligible vehicle under this rule whose title has been transferred to a trust may be written under the Massachusetts Automobile Insurance Policy, subject to the following requirements: the grantor of the trust must be an individual or lawfully married individuals residing in the same household, and must be the only insured(s) named in Item 1 of the Coverage Selections Page. All vehicle(s) insured under the policy must be owned by the trust. A vehicle owned by a trust in which the grantor is a partnership or corporation must be written under a commercial auto policy. If this criteria is met, the Trust Endorsement – M-0107-S must be added to the policy.

If a motor vehicle is leased as described in the foregoing paragraphs, and the lessee is obtaining the insurance, the policy must be issued to the lessee as named insured and Endorsement M-0070-S, “Coverage For Anyone Renting An Auto To You,” must be attached to the policy.

RULE 28. PRIVATE PASSENGER CLASSIFICATIONS

A. Operator Classes

10 Experienced Operator. The operator has been licensed at least six years and is under the age of 65 and the automobile is not used in the occupation, profession or business of the insured.

15 Experienced Operator - age sixty-five or more. The operator has been licensed at least six years and is sixty-five years of age or more and the automobile is not used in the occupation, profession or business of the insured.

17 Inexperienced Principal Operator - licensed three or more years. The operator of the automobile has been licensed at least three years and less than six years and is the principal operator of the automobile.

18 Inexperienced Occasional Operator - licensed three or more years. The operator has been licensed at least three years and less than six years and is not the principal operator of the automobile.



D. Loyalty Plus Factor

1. The Loyalty Plus Factor (LPF) will be applied on a vehicle level basis to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,11 and 12. This factor will apply to all vehicle types. The LPF will be updated (1) upon renewal, and (2) with anyendorsement activity that impacts Merit Rating and/or Years Licensed. The LPF will apply to a vehicle given thespecific combination of the following risk characteristics of the vehicle being rated:

a. The applicable Years Licensed group for the assigned driver.b. The applicable Merit Rating Group as determined by the Merit Rating Code reported by the Merit Rating Board

for the assigned driver.c. The applicable Loyalty group which is determined by the number of consecutive years the listed driver has

maintained uninterrupted, with no lapse, Personal Automobile coverage with Commerce. If the policyholderis eligible for the Welcome Back Credit, their prior continuous years with Commerce will be counted.

d. Presence of AAA Membership, including the number of years the insured has been a AAA Member.

2. Apply the appropriate Loyalty Plus Factor (LPF) shown below in accordance to Rule 11, Premium Calculation.

Loyalty Plus Group Definitions

Years Licensed

Years Licensed

Group

Merit Rating Code

Merit Rating Group

# of Years

with CIC

CIC Loyalty Group

# of Years with AAA

AAA Loyalty Group

0 – 2 1 99 1 0 0 Non – Member 99 3 – 5 2 98 – 00 2 1 1 0 0

6 – 18 3 01 – 04 3 2 2 1 119 - 42 4 05 – 45 4 3 3 2 2

43+ 5 4 4 3 3 5 5 4 4 6 6 5 5 7 7 6+ 6 8 8 9 9 10+ 10



F. Hardship Accommodation

If the removal of a deceased rated operator during the middle of a policy term, or subsequent to a renewal offer having been issued for an upcoming policy term, will result in an increase in premium, Commerce may for all impacted policies, upon request, defer application of the parts of Rule 11 that will result in the increase in premium until the next renewal term.


RULE 27. PRIVATE PASSENGER DEFINITION

A. A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire.

B. A motor vehicle that is a pick-up or van, that is owned or leased under contract for a continuous period of at least 12 months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and

1. has a gross vehicle weight rating of less than 10,000 pounds or has a rating symbol assigned to it by theInsurance Services Office (ISO), and

2. is not used for the delivery or transportation of goods or materials unless such use is incidental to theinsured’s business of installing, maintaining or repairing furnishings or equipment.


D. An eligible vehicle under this rule whose title has been transferred to a trust may be written under the Massachusetts Automobile Insurance Policy, subject to the following requirements: the grantor of the trust must be an individual or lawfully married individuals residing in the same household, and must be the only insured(s) named in Item 1 of the Coverage Selections Page. All vehicle(s) insured under the policy must be owned by the trust. A vehicle owned by a trust in which the grantor is a partnership or corporation must be written under a commercial auto policy. If this criteria is met, the Trust Endorsement – M-0107-S must be added to the policy.

If a motor vehicle is leased as described in the foregoing paragraphs, and the lessee is obtaining the insurance, the policy must be issued to the lessee as named insured and Endorsement M-0070-S, “Coverage For Anyone Renting An Auto To You,” must be attached to the policy.

RULE 28. PRIVATE PASSENGER CLASSIFICATIONS

A. Operator Classes







b. Sidecars; c. Custom paint, custom plating, custom seats and custom exhaust; d.. Safety riding apparel. This includes safety apparel specifically designed to minimize injury from an

accident. This includes but is not limited to helmets, leather clothing, riding boots and gloves, and protective eyewear.

Certain exclusions will apply. Please refer to the endorsement for additional details. This endorsement may be purchased for any motorcycle that has Part 9 - Comprehensive Coverage in increments of $1,000, up to a maximum limit of $25,000. Please refer to the Miscellaneous Rate Page for the applicable premiums per $1,000 of coverage. DriveAdvisor Program Endorsement – CIC 2229 DriveAdvisor is a voluntary program available to eligible operators to promote safe, accident-free driving. As a DriveAdvisor participant, the insured will be provided with a device to install in their auto. The device collects data, which is analyzed for the purpose of providing online feedback and information about the insureds driving patterns. Participation in DriveAdvisor is subject to the program’s terms and conditions. DriveAdvisor Endorsement is eligible to Insureds who:

1. at the time of program enrollment, have an operator on their policy with: a. less than three years driving experience; or b. 5 or more Merit Rating points,

2. have a 1996 or newer automobile that is compatible with the DriveAdvisor device; and 3. provide a valid email address.

This program has no impact on the premium or coverage selections. This service is provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice. Retail Benefit Program – CIC 2238 Retail Benefit Program is a voluntary program available to all policyholders.

Policyholders that choose to participate in the program may be eligible to receive benefits that include, from time to time based on availability, discounts on products and services provided by third party retail stores, extended warranty benefits, and/or other rewards.

This program has no impact on the premium or coverage selections. The benefits that are offered under the retail benefit program are subject to change at any time in our sole discretion. This service is provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice. RULE 38. Disappearing Deductible Credit The Disappearing Deductible Credit is available to all eligible policyholders as of May 1, 2013. Endorsement CIC 2197 will be attached to all eligible new and renewal policies. For renewal policies issued on and after May 1, 2013, prior year(s) of coverage with Commerce count for the purposes of determining deductible credit awards. Eligibility The coverage applies if a premium is shown for any auto in the Coverage Selections Page for Collision or Limited Collision. Credit Awards Credits will be awarded after one full clean year where no credits were used or lost. “Clean Year” means any twelve month policy period in which the insured has their auto insured by Commerce and: (1) no operator was surcharged for



an at-fault accident, and (2) the policy was free of hit and run Collision or Comprehensive loss payments greater than $500. The Insured’s policy will earn a $50 credit for each consecutive clean year(s) after the initial clean year up to the policy period. The maximum credits that can be earned is $250. If the credits are used or lost, a new clean policy year must be completed before the insured is awarded credits again. Using Credits Credits will be used to reduce the deductible amount that is owed on a Collision, Limited Collision or Comprehensive claim greater than $500 to which the deductible applies as long as the insured is not eligible for coverage under the Elite Package Endorsement. If the deductible is waived in whole or part by the Elite Package endorsement, that coverage prevails. Credits will be set to $0 if they are used during the policy period. Losing Credits Credits will be lost and will be set to $0 during the policy period if:

At any time the insured does not have Collision Limited Collision coverage on at least one auto covered by the policy;

The insured or any operator listed on the policy is surcharged for an at-fault accident when there is no Collision

or Limited Collision claim made;

The deductible is waived in whole or part by coverage in the Elite Package Endorsement;

The policy cancels with a lapse in coverage. Note: If the policyholder is eligible for the Welcome Back Credit, their prior Disappearing Deductible credits will not be honored. Credits will be earned as noted above.



b. Sidecars;

c. Custom paint, custom plating, custom seats and custom exhaust;

d.. Safety riding apparel. This includes safety apparel specifically designed to minimize injury from an accident. This includes but is not limited to helmets, leather clothing, riding boots and gloves, and protective eyewear.

Certain exclusions will apply. Please refer to the endorsement for additional details.

This endorsement may be purchased for any motorcycle that has Part 9 - Comprehensive Coverage in increments of $1,000, up to a maximum limit of $25,000. Please refer to the Miscellaneous Rate Page for the applicable premiums per $1,000 of coverage.

DriveAdvisor Program Endorsement – CIC 2229

DriveAdvisor is a voluntary program available to eligible operators to promote safe, accident-free driving. As a DriveAdvisor participant, the insured will be provided with a device to install in their auto. The device collects data, which is analyzed for the purpose of providing online feedback and information about the insureds driving patterns. Participation in DriveAdvisor is subject to the program’s terms and conditions.

DriveAdvisor Endorsement is eligible to Insureds who: 1. at the time of program enrollment, have an operator on their policy with:

a. less than three years driving experience; orb. 5 or more Merit Rating points,

2. have a 1996 or newer automobile that is compatible with the DriveAdvisor device; and3. provide a valid email address.

This program has no impact on the premium or coverage selections.

This service is provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice.

Retail Benefit Program – CIC 2238

Retail Benefit Program is a voluntary program available to all policyholders.


This program has no impact on the premium or coverage selections. The benefits that are offered under the retail benefit program are subject to change at any time in our sole discretion.

This service is provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice.

RULE 38. Disappearing Deductible Credit

The Disappearing Deductible Credit is available to all eligible policyholders as of May 1, 2013. Endorsement CIC 2197 will be attached to all eligible new and renewal policies. For renewal policies issued on and after May 1, 2013, prior year(s) of coverage with Commerce count for the purposes of determining deductible credit awards.

Eligibility The coverage applies if a premium is shown for any auto in the Coverage Selections Page for Collision or Limited Collision.

Credit Awards Credits will be awarded after one full clean year where no credits were used or lost. “Clean Year” means any twelve month policy period in which the insured has their auto insured by Commerce and: (1) no operator was surcharged for


B-2 Copyright, The Commerce Insurance Company, 2014

PRIVATE PASSENGER FORMS

Title Edition Massachusetts Automobile Insurance policy 2008 Ed. Application for Massachusetts Motor Vehicle Insurance CIC-522 (11/11) Coverage Selections Page 12/14 Annual Mileage Discount Form (05/12) Application for Benefits – Personal Injury Protection Statutory Notice of Cancellation of the Massachusetts Motor Vehicle Liability Policy AL 9666e (4/09) Legal Notice of Non-Renewal of Your Massachusetts Automobile Insurance Policy CIC-2145 (4/09) Notice of Transfer of Insurer

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Formatted: English (United States)




Title Edition

Massachusetts Automobile Insurance policy 2008 Ed.

Application for Massachusetts Motor Vehicle Insurance CIC-522 (11/11)

Coverage Selections Page 12/14

Annual Mileage Discount Form (05/12)

Application for Benefits – Personal Injury Protection

Statutory Notice of Cancellation of the Massachusetts Motor Vehicle Liability Policy AL 9666e (4/09)

Legal Notice of Non-Renewal of Your Massachusetts Automobile Insurance Policy CIC-2145 (4/09)

Notice of Transfer of Insurer


RS-1 Copyright, The Commerce Insurance Company, 2014

Miscellaneous Rating Factors DEDUCTIBLES (RULE 16) $100** Deductibles: $1,000* $2,000* Glass

Collision: .63 .48 Not Applicable Limited Collision: .54 .32 Not Applicable Comprehensive: .75 .67 .75

Including Fire, Theft and Combined Additional Coverages *Charges based on $500 Deductible Premium **Applies to otherwise determined premium Collision Waiver of Deductible Charges: $300 Deductible - $10 $500 Deductible - $13 $1,000 Deductible - $16 $2,000 Deductible - $25SUBSTITUTE TRANSPORTATION (RULE 17) $15/Day, $450 Maximum $30/Day, $900 Maximum

$45/Day, $1,350

Maximum $100/Day, $3,000 Maximum

Private Passenger: $25 $64 $144 $309Motorcycle: $45 $90 $167 $346

DISCOUNTS and Credits (RULE 19) Part

1 Part

2 Part

3 Part

4 Part

5 Part

6 Part

7 Part

8 Part

9 Part 10

Part 11

Part 12

Multi-Car: 8% 8% 8% 8% 8% 8% 8% Account Discount (Refer to Rule 19, Discounts and Credits)

Shop Smart Credit 0 yr with CIC 1 yr with CIC

2 yrs with CIC

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

Paid In Full Discount 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% Good Student Discount 10% 10% 10% 10% 10% 10% 10% Student Away from Home Discount

Class: 17, 18 Class: 20, 21, 25, 26

10% 15%

10% 15%

10% 15%

10% 15%

10% 15%

10% 15%

10% 15%

Smart Driver Discount ADT-Driven

ADT-In Control ADT-Stevens

ADT-Central MA DSDP Other company approved

Advanced Driver Training Program teenSMART

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

Green Discount EFT/EBill only

Paperless EFT/EBill and Paperless

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

Clean in Three Discount 5% 5% 5% 5% Welcome Back Credit

0 Years Back 1 Year Back

2 Years Back

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

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Including Fire, Theft and Combined Additional Coverages *Charges based on $500 Deductible Premium **Applies to otherwise determined premium Collision Waiver of Deductible Charges: $300 Deductible - $10 $500 Deductible - $13 $1,000 Deductible - $16 $2,000 Deductible - $25 SUBSTITUTE TRANSPORTATION (RULE 17) $15/Day, $450 Maximum $30/Day, $900 Maximum

$45/Day, $1,350


Private Passenger: $25 $64 $144 $309 Motorcycle: $45 $90 $167 $346


1 Part

2 Part

3 Part

4 Part

5 Part

6 Part

7 Part

8 Part

9 Part 10

Part 11

Part 12



2 yrs with CIC

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%


Class: 17, 18 Class: 20, 21, 25, 26

10% 15%

10% 15%

10% 15%

10% 15%

10% 15%

10% 15%

10% 15%





5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%

5% 5% 5% 5% 5% 5%



1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%

1% 2% 3%



2 Years Back

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

8% 5% 3%

CIC-2115 (12/14) (See Reverse Page for Required Applicant Signature) Page 1 of 2 Deleted: 11



Named Insured

Mailing Address







______ < or = 20/60 ______ 100/100 to <250/500 ______ 25/50 to <50/50 ______ > or = 250/500 ______ 50/50 to <100/100





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(12/14)

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AUTO




LIMITS

Deductible

Annual

Premium Adjusted Premium LIMITS

Deductible Annual



$ per Accident


$ per Accident

None $ $



$ $ $ per Person


$ $


$ per Person

$ per Accident


$ per Accident

None $ $


$ per Accident


None $ $


Others $ per Person

$ per Accident


$ per Accident

None $ $



None $ $


maximum $


None $ $



None $ $


$ per Person

$ per Accident


$ per Accident

None $ $



TOTAL PREMIUM (POLICY) $ Disappearing Deductible Credits as of xx/xx/xxxx: $x

DISCOUNTS Account

Age 65 and older

Annual Mileage

Anti Theft

Good Student

MCD

Shop Smart

Student Away

Motorcycle Training

Pay Plan

Smart Driver

Clean in 3

Welcome Back

AUTO

AUTO



(12/14)

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Op No.

Operator Name

Date of

Birth

License Number

Lic.

State

Clean in

Three

CIC Merit

Rating

Date First Licensed



Def Op Y/N





MERIT RATING PLAN


Rating Class

Prem. Town

Stat Class

Risk Type

Age

HT CMP

Annual Mileage

Risk Level

Years Lic Group

MR Group

CIC Loy Group

AAA Loy Group

Comp Sym

Coll Sym

Liab Sym

PIP/MP Sym

1 2 3 4



Copyright, The Commerce Insurance Company, 2014

MASSACHUSETTS PRIVATE PASSENGER AUTOMOBILE

INSURANCE MANUAL


TC - 1 Copyright, The Commerce Insurance Company, 2014

TABLE OF CONTENTS

Page

SECTION I - GENERAL RULES

Rule No. 1 Massachusetts Automobile Insurance Policy - Eligibility ............................................ 1 2 Coverages and Limits ................................................................................................. 1 3 Mandatory Offer of Coverage ..................................................................................... 2 4 Standard Procedures .................................................................................................. 2 5 Residence and Location ............................................................................................. 4 6 Out-of-State Garaging ................................................................................................. 4 7 Policy Period ............................................................................................................... 4 8 Changes ...................................................................................................................... 5 9 Motor Vehicle Registration Certificates ...................................................................... 5 10 Certified Risks - Financial Responsibility Laws .......................................................... 5 11 Premium Calculation Rule .......................................................................................... 7 12 Whole Dollar Premium Rule ....................................................................................... 9 13 Installment Payment of Premiums .............................................................................. 10 14 Deposit Premium Rule ................................................................................................ 10 15 Employers Subject to Massachusetts Workers Compensation Act ........................... 10 16 Deductibles - Parts 7, 8 and 9..................................................................................... 10 17 Substitute Transportation ............................................................................................ 10 18 Termination of Insurance ............................................................................................ 10 19 Discounts and Credits ................................................................................................. 16 20 Vehicle Liability Symbols ............................................................................................ 20 21 Model Year Rating ...................................................................................................... 20 22 Non-Symbolled Vehicles and Rating Vehicles for which Symbols are not shown On the Rate Pages ...................................................................................................... 21 23 High-Theft Vehicles ..................................................................................................... 23 24 Extra-Risk Rating (Collision and Comprehensive) ..................................................... 23 25 Vehicle Series Rating .................................................................................................. 24 26 Additional Company Rating Rules .............................................................................. 25 Years Licensed .......................................................................................................... 25 Risk Factor .................................................................................................................. 26 Driver – Vehicle Factor................................................................................................ 110 Loyalty Plus Factor ...................................................................................................... 112 HH Level Factor………………………………………………………………………… .. 205 Hardship Accommodation ........................................................................................... 422

SECTION II - PRIVATE PASSENGER AUTOMOBILES Rule No. 27 Private Passenger Definition....................................................................................... 422 28 Private Passenger Classifications .............................................................................. 422 29 Reserved For Future Use ........................................................................................... 425 30 Personal Injury Protection - Deductible Form ............................................................ 425 31 Transportation of Fellow Employees .......................................................................... 425





Table A


Part 11

Part 12 Total



















19 Shop Smart Credit Discount x x x x x x x x x x x x










29 Subtotal + + + + + + + + + + + +










Coverage Premium

Deleted:

Table A

STEP Covera


2 Limited Collision Factor

3 Liability/Model Year Symbol Factor


5 Increased Limits Factor

6 Deductible Factor

7 Glass Deductible

8 Waiver of Deductible

9 Extra Risk Factor

10 Years Licensed Factor

11 Risk Factor

12 Driver to Vehicle (include deferred driver) Factor

13 Household Level Factor

14 Loyalty Plus

15 Annual Mileage Discount

16 Multi-Car Discount

17 Anti-Theft Discount

18 Account Discount

19 Shop Smart Discount

20 Group Discount and Affinity/Marketing Partnership Discount

21 Good Student Discount

22 Student Away From Home Discount

23 Smart Driver Discount

24 Green Discount

25 Clean in Three Discount

26 Senior Discount

27 Merit Rating Adjustment

28 Subtotal



31 MAIP Premium for selected Coverages in Coverage Packag

32Capping Amount (Step 28)*min[(Step 31 divided by Step 301,0]*(Step 29)


34 Auto Loan/Lease Coverage

35 Paid In Full Discount

36 Accident Forgiveness

37 Commerce Elite Package Endorsement

38 Commerce Enhancer Package Endorsement

Coverage



Explanation of Steps 28-33: MAIP Capping (compliance with DOI Bulletin 2009-13) In order to comply with the Massachusetts Division of Insurance Bulletin 2009-13, Rating Steps 29-34 as found in Table A of Rule 11 ensure that for the “Coverage Package Premium not to Exceed MAIP Premium in Effect October 1, 2013” identified in Bulletin 2009-13, Exhibit 1, Commerce will charge no more than the MAIP premium for private passenger type vehicles as defined in Rule 29. The MAIP Capping calculation does not apply to miscellaneous type vehicles, including antique motor cars, antique motorcycles, motorcycles (incl. motor scooters, mopeds and similar motor vehicles), trailers and motor homes/camper bodies. This procedure will be calculated as follows: Step 29: Derive the manually rated premium by applying Steps 1 through 27 in Table A as found in Rule 11. This will be referred to in future rating steps as “Uncapped Premium” Step 30: Determine the Coverage Package Capping Factor from Tables B.1 –B.11, C, and D as found in Rule 11 applicable to each coverage based on the coverage limit selection for the rated vehicle. A factor equal to “1.000” will reflect that the Coverage Part falls within the definition of Bulletin 2009-13, Exhibit 1 and is subject to premium capping, a “0.000” (zero) will reflect that the Coverage Part is not included within the definition of Bulletin 2009-13, Exhibit 1 and is not subject to premium capping. Step 31: Multiply each Coverage Part’s Uncapped Premium by the Coverage Package Capping Factor as determined in Step 30. Add all Coverage Parts together. This total will be called “Applicable Capped Premium” for the Rated Vehicle. Step 32: Determine the applicable MAIP Premium for all Coverage Parts where the Coverage Package Capping Factor, as determined in Step 30, equals “1.000”. Sum all of the Coverage Part’s premium. This will be referred to in future rating steps as “Applicable MAIP Premium” Step 33: Determine the necessary Premium reduction for each Coverage Part using the formula:


or in words:

Uncapped Premium x MINIMUM of [ (A) Applicable MAIP Premium ÷ Applicable Capped Premium minus 1.00 ; (B) 0.000 (zero) ] x Coverage Package Capping Factor Note: This value will always be either a Negative Amount or Zero for each Coverage Part. Step 34: Step 29 + Step 33

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RULE 12. PREMIUM ROUNDING RULE The premium for each exposure will be rounded, separately for each coverage provided by the policy, as follows: 1. Steps 1 through 26, as provided in Rule 11, will be rounded to the penny after each step. 2, Step 27, 28 and 35-39 will be rounded to the nearest whole dollar, For whole dollar rounding, a premium involving $0.50 or more will be rounded to the next whole dollar at the end of each step. This does not apply to Part 5, 20/40 limits and Part 6, $5,000 limit where rates may be used or rounded to the lower whole dollar. This procedure will apply to all interim premium adjustments, including endorsements or cancellations at the request of the insured. In the case of cancellation by Commerce, the return premium will be carried to the next higher whole dollar.

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NOTE: The premium for “each exposure” means the premium developed for each coverage for each automobile after the application of all applicable discounts. RULE 13. INSTALLMENT PAYMENT OF PREMIUMS All motor vehicle insurance policy premium charges are due and payable on the stated installment bill due date of the policy, subject to the provisions of the Deposit Premium Rule (Rule 14), and also subject to Commerce’s installment payment plans as approved by the Commissioner of Insurance.

RULE 14. DEPOSIT PREMIUM RULE Commerce, its producer or any broker may require deposit premium prior to the issuance of a policy provided the deposit does not exceed 30% of the applicable annual premium for the insurance requested. If the applicant has been in default in the payment of any premium for automobile insurance or merit rating adjustment during the preceding 24 months, the entire policy premium charges are payable in advance. RULE 15. EMPLOYERS SUBJECT TO MASSACHUSETTS WORKERS’ COMPENSATION ACT Motor vehicles owned by an employer subject to the Massachusetts workers’ compensation law not used at any time to transport persons other than employees of the named insured will be eligible for a 25% reduction in the Part 2 - Personal Injury Protection premium otherwise applicable. A vehicle which qualifies for this reduction is not eligible for any Part 2 - Personal Injury Protection deductible. RULE 16. DEDUCTIBLES - PARTS 7, 8 and 9 Deductibles, other than the standard deductible, are available for Part 7 - Collision, Part 8 - Limited Collision and Part 9 - Comprehensive Coverages including Fire, Theft and Combined Additional Coverages. Refer to the Miscellaneous Rating Factors page for applicable factors. RULE 17. SUBSTITUTE TRANSPORTATION The charges for this coverage are on a per vehicle/per year basis for automobiles and motorcycles. Refer to the Miscellaneous Rating Factors page for applicable limits and premiums. RULE 18. TERMINATION OF INSURANCE A. Cancellations The following provisions apply when a policy is cancelled: 1. If a policy is cancelled by Commerce at any time, or by the insured within thirty days of the effective date or

within thirty days of the receipt of the policy, whichever is later, the return premium will be computed pro rata. "Policy" in this instance includes the copy of the Coverage Selections Page.

If the policy is cancelled at the request of the insured later than thirty days from the effective date or later than

thirty days from the receipt of the policy, whichever is later, the return premium will be calculated on a short rate basis except that in the following cases the return premium will be computed pro rata:

a. If the insured has disposed of the automobile, provided the insured takes out a new policy with Commerce

on another automobile to become effective within thirty days of the date of cancellation. b. If the insured automobile is repossessed under terms of a financing agreement. c. If an automobile is cancelled from a policy, the policy remaining in force on other automobiles, or if there

remains in force in the name of the insured or his spouse, if a resident of the same household, and with Commerce, a concurrent automobile policy covering another automobile.

d. If the insured enters the military service of the United States of America. e. If the insured deletes or reduces any coverage and the policy remains in effect for other coverage. f. If the policy is cancelled and rewritten by another Commerce agent.












Description

No MAPFRE Life


Citation Umbrella

MAPFRE Life Policy


Umbrella)

Commerce/ Citation

Umbrella Policy

(No life)

Commerce/ Citation
















Deleted: Discount

Deleted: Discount

Deleted: discount














Deleted: A

Deleted: Discount

Deleted: upon



a.) Eligible policyholders must have been insured with Commerce previously; and b.) Eligible policyholders must have prior continuous insurance with a company(s) other than Commerce for a

minimum of 6 months or a maximum or 24 months prior to returning to Commerce; and c.) Eligible policyholders must have no prior lapse in coverage within the last 3 years.


Automobile Insurance Plan. (MAIP). (2) The policyholder is not eligible for this credit if they were previously cancelled by Commerce due to Fraud or Underwriting reasons. (DNR, MM1, MM2, MM3, and UNR). (3) The Welcome Back and Shop Smart Credits are mutually exclusive. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this credit. The Welcome Back Credit will continue to apply at the first and second renewal term following the first application of the credit. A discount of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders. Refer to the Miscellaneous Rating Factors page for applicable discount. RULE 20. VEHICLE LIABILITY SYMBOLS To determine the Vehicle Liability Symbols, refer to the current ISO Liability and PIP/Medical Payments Vehicle Rating Plan Manual. For each vehicle listed on the Symbols Pages, two LPMP rating symbols are provided: One applicable to BI and PD Liability coverages, and one applicable to Medical Payments and PIP coverages. The symbols are displayed for each vehicle series, on a vehicle series basis, and apply to all vehicles (all VINs ) in a vehicle series. The LPMP symbols do not vary by model year of vehicle unless otherwise noted. Liability Symbols are supplied by ISO’s 2010 Liability Symbol program. Rating Steps: A. Identify the two LPMP symbols found on the symbols page.* B. Refer to the Liability and Medical Payments Vehicle Rating Factor Table to determine the LPMP vehicle rating factors association with each symbol. *If a symbol can not be determined, use an LPMP rating factor of 1.00 for both Liability and Medical Payments/PIP. LPMP factors do not apply to risks rated in accordance with Rule 49. Named Non-owned. RULE 21. MODEL YEAR RATING A. Model Year Defined The model year of an auto is used in rating physical damage coverage on an actual cash value basis. The model year of the auto is the year assigned by the auto manufacturer. The model year of rebuilt or structurally altered autos is determined by the model year of the chassis. B. Rating of Model Years







D. Loyalty Plus Factor 1. The Loyalty Plus Factor (LPF) will be applied on a vehicle level basis to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10,

11 and 12. This factor will apply to all vehicle types. The LPF will be updated (1) upon renewal, and (2) with any endorsement activity that impacts Merit Rating and/or Years Licensed. The LPF will apply to a vehicle given the specific combination of the following risk characteristics of the vehicle being rated:

a. The applicable Years Licensed group for the assigned driver. b. The applicable Merit Rating Group as determined by the Merit Rating Code reported by the Merit Rating Board

for the assigned driver. c. The applicable Loyalty group which is determined by the number of consecutive years the listed driver has

maintained uninterrupted, with no lapse, Personal Automobile coverage with Commerce. If the policyholder is eligible for the Welcome Back Credit, their prior continuous years with Commerce will be counted.

d. Presence of AAA Membership, including the number of years the insured has been a AAA Member. 2. Apply the appropriate Loyalty Plus Factor (LPF) shown below in accordance to Rule 11, Premium Calculation. Loyalty Plus Group Definitions

Years

Licensed

Years Licensed

Group

Merit Rating Code

Merit Rating Group

# of Years

with CIC

CIC Loyalty Group

# of Years with AAA

AAA Loyalty Group

0 – 2 1 99 1 0 0 Non – Member 99 3 – 5 2 98 – 00 2 1 1 0 0 6 – 18 3 01 – 04 3 2 2 1 1 19 - 42 4 05 – 45 4 3 3 2 2

43+ 5 4 4 3 3 5 5 4 4 6 6 5 5 7 7 6+ 6 8 8 9 9 10+ 10



F. Hardship Accommodation If the removal of a deceased rated operator during the middle of a policy term, or subsequent to a renewal offer having been issued for an upcoming policy term, will result in an increase in premium, Commerce may for all impacted policies, upon request, defer application of the parts of Rule 11 that will result in the increase in premium until the next renewal term.


RULE 27. PRIVATE PASSENGER DEFINITION A. A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a

continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire.

B. A motor vehicle that is a pick-up or van, that is owned or leased under contract for a continuous period of at

least 12 months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and

1. has a gross vehicle weight rating of less than 10,000 pounds or has a rating symbol assigned to it by the

Insurance Services Office (ISO), and 2. is not used for the delivery or transportation of goods or materials unless such use is incidental to the

insured’s business of installing, maintaining or repairing furnishings or equipment.


D. An eligible vehicle under this rule whose title has been transferred to a trust may be written under the

Massachusetts Automobile Insurance Policy, subject to the following requirements: the grantor of the trust must be an individual or lawfully married individuals residing in the same household, and must be the only insured(s) named in Item 1 of the Coverage Selections Page. All vehicle(s) insured under the policy must be owned by the trust. A vehicle owned by a trust in which the grantor is a partnership or corporation must be written under a commercial auto policy. If this criteria is met, the Trust Endorsement – M-0107-S must be added to the policy.

If a motor vehicle is leased as described in the foregoing paragraphs, and the lessee is obtaining the insurance,

the policy must be issued to the lessee as named insured and Endorsement M-0070-S, “Coverage For Anyone Renting An Auto To You,” must be attached to the policy.

RULE 28. PRIVATE PASSENGER CLASSIFICATIONS A. Operator Classes







b. Sidecars; c. Custom paint, custom plating, custom seats and custom exhaust; d.. Safety riding apparel. This includes safety apparel specifically designed to minimize injury from an

accident. This includes but is not limited to helmets, leather clothing, riding boots and gloves, and protective eyewear.

Certain exclusions will apply. Please refer to the endorsement for additional details. This endorsement may be purchased for any motorcycle that has Part 9 - Comprehensive Coverage in increments of $1,000, up to a maximum limit of $25,000. Please refer to the Miscellaneous Rate Page for the applicable premiums per $1,000 of coverage. DriveAdvisor Program Endorsement – CIC 2229 DriveAdvisor is a voluntary program available to eligible operators to promote safe, accident-free driving. As a DriveAdvisor participant, the insured will be provided with a device to install in their auto. The device collects data, which is analyzed for the purpose of providing online feedback and information about the insureds driving patterns. Participation in DriveAdvisor is subject to the program’s terms and conditions. DriveAdvisor Endorsement is eligible to Insureds who:

1. at the time of program enrollment, have an operator on their policy with: a. less than three years driving experience; or b. 5 or more Merit Rating points,

2. have a 1996 or newer automobile that is compatible with the DriveAdvisor device; and 3. provide a valid email address.

This program has no impact on the premium or coverage selections. This service is provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice. Retail Benefit Program – CIC 2238 Retail Benefit Program is a voluntary program available to all policyholders.


This program has no impact on the premium or coverage selections. The benefits that are offered under the retail benefit program are subject to change at any time in our sole discretion. This service is provided through a third party and is subject to availability, terms, conditions and limitations, which may change without prior written notice. RULE 38. Disappearing Deductible Credit The Disappearing Deductible Credit is available to all eligible policyholders as of May 1, 2013. Endorsement CIC 2197 will be attached to all eligible new and renewal policies. For renewal policies issued on and after May 1, 2013, prior year(s) of coverage with Commerce count for the purposes of determining deductible credit awards. Eligibility The coverage applies if a premium is shown for any auto in the Coverage Selections Page for Collision or Limited Collision. Credit Awards Credits will be awarded after one full clean year where no credits were used or lost. “Clean Year” means any twelve month policy period in which the insured has their auto insured by Commerce and: (1) no operator was surcharged for




Title Edition Massachusetts Automobile Insurance policy 2008 Ed. Application for Massachusetts Motor Vehicle Insurance CIC-522 (11/11) Coverage Selections Page 12/14 Annual Mileage Discount Form (05/12) Application for Benefits – Personal Injury Protection Statutory Notice of Cancellation of the Massachusetts Motor Vehicle Liability Policy AL 9666e (4/09) Legal Notice of Non-Renewal of Your Massachusetts Automobile Insurance Policy CIC-2145 (4/09) Notice of Transfer of Insurer

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Formatted: English (United States)





Including Fire, Theft and Combined Additional Coverages *Charges based on $500 Deductible Premium **Applies to otherwise determined premium Collision Waiver of Deductible Charges: $300 Deductible - $10 $500 Deductible - $13 $1,000 Deductible - $16 $2,000 Deductible - $25SUBSTITUTE TRANSPORTATION (RULE 17) $15/Day, $450 Maximum $30/Day, $900 Maximum

$45/Day, $1,350


Private Passenger: $25 $64 $144 $309Motorcycle: $45 $90 $167 $346


1 Part

2 Part

3 Part

4 Part

5 Part

6 Part

7 Part

8 Part

9 Part 10

Part 11

Part 12



2 yrs with CIC

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Class: 17, 18 Class: 20, 21, 25, 26

10% 15%

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5% 5% 5% 5% 5% 5%

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2 Years Back

8% 5% 3%

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Deleted: Discount












Description

No MAPFRE Life


Citation Umbrella

MAPFRE Life Policy


Umbrella)

Commerce/ Citation

Umbrella Policy

(No life)

Commerce/ Citation
















Deleted: Discount

Deleted: Discount

Deleted: discount














Deleted: A

Deleted: Discount

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Automobile Insurance Plan. (MAIP). (2) The policyholder is not eligible for this credit if they were previously cancelled by Commerce due to Fraud or Underwriting reasons. (DNR, MM1, MM2, MM3, and UNR). (3) The Welcome Back and Shop Smart Credits are mutually exclusive. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this credit. The Welcome Back Credit will continue to apply at the first and second renewal term following the first application of the credit. A discount of the premium applicable for Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders. Refer to the Miscellaneous Rating Factors page for applicable discount. RULE 20. VEHICLE LIABILITY SYMBOLS To determine the Vehicle Liability Symbols, refer to the current ISO Liability and PIP/Medical Payments Vehicle Rating Plan Manual. For each vehicle listed on the Symbols Pages, two LPMP rating symbols are provided: One applicable to BI and PD Liability coverages, and one applicable to Medical Payments and PIP coverages. The symbols are displayed for each vehicle series, on a vehicle series basis, and apply to all vehicles (all VINs ) in a vehicle series. The LPMP symbols do not vary by model year of vehicle unless otherwise noted. Liability Symbols are supplied by ISO’s 2010 Liability Symbol program. Rating Steps: A. Identify the two LPMP symbols found on the symbols page.* B. Refer to the Liability and Medical Payments Vehicle Rating Factor Table to determine the LPMP vehicle rating factors association with each symbol. *If a symbol can not be determined, use an LPMP rating factor of 1.00 for both Liability and Medical Payments/PIP. LPMP factors do not apply to risks rated in accordance with Rule 49. Named Non-owned. RULE 21. MODEL YEAR RATING A. Model Year Defined The model year of an auto is used in rating physical damage coverage on an actual cash value basis. The model year of the auto is the year assigned by the auto manufacturer. The model year of rebuilt or structurally altered autos is determined by the model year of the chassis. B. Rating of Model Years







RULE 19. DISCOUNTS and CREDITS

A. Multi-Car

Private Passenger Automobile An individual or lawfully married individuals residing in the same household, who own(s) two or more automobiles and purchases coverage from Commerce for at least two such automobiles, shall be entitled to a reduction of the premium applicable to Coverage Parts 1, 2, 4, 5, 7, 8 and 9. At least two of the automobiles must be private passenger vehicles as defined in Rule 27, except that vehicles classified as antiques are not eligible. Refer to Miscellaneous Rating Factors page for applicable discount.

Motorcycle An individual or lawfully married individuals residing in the same household, who own(s) two or more automobiles with at least one motorcycle and purchases coverage from Commerce for at least two such automobiles and one motorcycle, shall be entitled to a reduction of the premium applicable to Coverage Parts 1, 2, 4, 5, 7, 8, and 9. At least two of the automobiles must be private passenger vehicles as defined in Rule 27, except that vehicles classified as antiques are not eligible. At least one of the automobiles must be motorcycles as defined in Rule 44. Refer to Miscellaneous Rating Factors page for applicable discount.

B. Account Discount

The Account Discount applies if a named insured:


(2) maintains a Massachusetts Property Insurance Policy on their principal place of residence with Commerce or Citation, the FAIR Plan, or another eligible company. The property policy shall include a Homeowner, Condominium (not rented to others), or Renters policy, but shall not include a dwelling/fire only policy.

(3) maintains a qualifying MAPFRE life insurance policy(ies). A qualifying MAPFRE life insurance policy is an active individual term life or individual whole life policy within the policyholder’s account that is owned by the named insured or a related household member.



Only the largest single discount shall apply; andA discount of the premium applicable for Coverage Parts1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12 will be given to eligible policyholders as follows:

Description No MAPFRE Life Policy &

No Commerce/ Citation Umbrella

MAPFRE Life Policy


Umbrella)

Commerce/ Citation

Umbrella Policy

(No life)

Commerce/ Citation


MAPFRE Life) Commerce Auto only 0% 2% 2% 4% Commerce Auto and Home (HO 2, 3) 11% 13% 13% 15% Commerce Auto and Home (HO 15) 13% 15% 15% 17% Commerce Auto and Home (HO 4, 6) 9% 11% 11% 13% Property with the Fair Plan 2% 4% 4% 6% Property with Other Carrier 5% 7% 7% 9%

C. Anti-Theft Device

Refer to Anti-Theft Devices Standards and Discounts Section.



D. Class 15

Premiums otherwise applicable to class 10 automobiles shall be reduced by 25% for insureds age 65 or older. If the principal operator becomes age 65 during the policy year, the class 10 premium will be adjusted as of that date. The premium adjustment will be credited to the policyholder on that date unless that date is within sixty days of the expiration date of the policy, in which case the adjustment may be credited to the renewal policy. A notice of this classification change must be sent, or made electronically available to the policyholder either prior to or with the proposed adjustment. The policyholder is required to notify Commerce of any change in operator usage which would affect entitlement to the discount.

The 25% discount is applied to the final premium for each part after all other discounts and rating factors have been completed. It is the last step in the rating process prior to the application of the premium adjustment required under the Merit Rating Plan.

E. Annual Mileage Discount

A discount of the premium paid for Parts 1, 2, 3, 4, 5, 6, 7, 8 and 12 will be given to eligible policyholders when the annual mileage of the vehicle falls into one of six categories. The discount will be based on: (1) the Years Licensed Group of the operator assigned to that vehicle, (2) the Premium Town Group of the operator assigned to that vehicle and (3) the actual mileage driven in a recent 12 month period as determined by a comparison of two odometer readings, at least six months apart, and not more than 24 months prior to renewal processing or, obtained from Registry of Motor Vehicle information, or (2) if not available, a certification by the insured on the Annual Mileage Discount Form or other paper or on-line forms required by the company.

Refer to the Miscellaneous Rating Factors page for the applicable categories and discounts.

Eligibility

The vehicle must be a private passenger vehicle as defined in Rule 27, except that vehicles classified as antiques are not eligible. Commerce may request that the applicant for the discount complete the Annual Mileage Discount Form or other paper or on-line form for the verification of eligibility for the discount.

If two odometer readings, at least six months apart are not available to Commerce through the Registry of Motor Vehicles as set forth above, or if the Annual Mileage Discount Form or other required form is not completed by the insured and provided to the company prior to renewal processing, the vehicle is not eligible for the annual mileage discount

If a vehicle replaces another vehicle which is receiving the discount, the annual mileage of the prior vehicle will be attributed to the replacement vehicle.

Application of Discount

The applicable discount applies to rates otherwise determined for each insured vehicle by coverage, limits purchased, territory code , driver class, and model year and symbol prior to the application of the premium adjustment required under the Merit Rating Plan.

F. Shop Smart Credit

The Shop Smart Credit applies to new business policies provided the following criteria are met:

1. Eligible policyholders must have prior insurance with a company other than Commerce, for a minimum of6 months; and

2. Eligible policyholders must have no prior lapse in coverage within the last 3 years.

If the above two criteria are met and the policyholder has been at the same residence:

(1) for 7 or more years; or (2) less than 7 years, and has a policy that was submitted to Commerce at least 7 days prior to the policy effective date,

then the Shop Smart Credit will apply. In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this discount.



Exception: The Welcome Back and Shop Smart Credits are mutually exclusive. If the policy is elgible for the Welcome Back Credit, then the Shop Smart Credit will not apply.

The Shop Smart Credit will continue to apply at the first and second renewal term following the first application of this credit.


G. Good Student Discount

The Good Student Discount applies provided the following criteria are met:

a) The rated operator:1. Is classified in one of the following inexperienced operator classes: 17, 18, 20, 21, 25 or 26; and2. Is a full time high school, home study, college, or university student.

b) The rated operator has met one of the following requirements:1. Is in the upper 20% of his or her class scholastically; or2. maintains a “B” average or higher, or its equivalent, or if the letter grading system cannot be averaged

then no grade can be below a “B”; or3. in schools using numerical grade points, such as 4.0, 3.0, 2.0 and 1.0, had an average of at least 3.0

points or it’s equivalent for all subjects combined; or4. was included on the “Dean’s List”, “Honor Roll” or comparable list indicating scholastic achievement.5. In the case of home schooling, 2 options are given:


II. evidence of scoring in the upper 20% on an annual national standardized exam.


The Good Student Discount cannot be applied in conjunction with the Student Away from Home discount. If the insured is eligible for both discounts, the Student Away from Home discount will apply.

H. Student Away from Home Discount

The Student Away from Home Discount applies provided the following criteria are met:

a) The rated operator is classified in one of the following inexperienced operator classes: 17, 18, 20, 21, 25 or26.

b) The rated operator is a student residing at an educational institution over 100 road miles from the automobile’sprincipal place of garaging.

c) The student does not have regular access to the covered vehicle while at school.


The Student Away from Home discount can not be applied in conjunction with the Good Student discount. If the rated operator is eligible for both discounts, the Student Away from Home Discount will apply.

I. Paid-in-Full Discount

The Paid-in-Full Discount applies to policies where the annual policy premium is paid in full, subject to the following:

For new business, payment must be made in full upon down payment. For renewal business, payment must be made in full upon the first installment due date.

Exceptions: (1) National Standard and Named Non-owned policies are not eligible for the discount, and; (2) Finance company payments do not qualify for the discount. The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for applicable discount.



J. Smart Driver Discount

A Smart Driver Discount will apply if an eligible rated operator has completed a company approved Advanced Driver Training Program or the teenSMART Training Program. The following eligibility rules apply:

1) Vehicle must be a private passenger vehicle as defined in Rule 27. Vehicles classified as antiques, motorcycles,motor homes/campers and miscellaneous motor vehicle types are not eligible.

2) All operator classes are eligible for the discount when the Advanced Driver Training Program is completed.3) Operator classes 17, 18, 20, 21, 25 & 26 only are eligible for the discount when the teenSMART Training

Program is completed.4) Discount will apply for the 5 year period from when the course is completed. For teenSMART only, the discount

will apply for the 5 year period from when the course is completed or until the operator reaches class 10,whichever is earlier.

The maximum allowable discount at any given time is 5%, regardless of the number of training programs completed by an individual driver.

The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for specific courses and their applicable discounts.

K. Green Discount

One of the following disounts will apply provided the following criteria are met:


The insured is enrolled in either CIC’s Electronic Fund Transfer program (EFT) or Electronic Invoice(EBill) program.




The insured is enrolled in either CIC’s Electronic Fund Transfer program (EFT) or Electronic Invoice(EBill) program; and


Exception: -National Standard and Named Non-owned policies are not eligible for the discount, - Policies with the Paid in Full Discount are not eligible for this discount under A or C, only B. The Paid in

Full discount can only be applied in conjuction with Paperless (policy forms).

The discount will be applied to Coverage Parts 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12. Refer to the Miscellaneous Rating Factors page for applicable discount.

L. Clean in Three Discount

The Clean in Three Discount will apply provided the following criteria are met:

a.) The rated vehicle is subject to the Merit Rating Plan; b.) There are no at-fault accidents or traffic violations attributable to the rated operator during the three years immediately preceding the policy effective date; c.) The rated operator has been licensed for at least three years; and d.) An electronic copy of the rated operator’s driving experience is made available to Commerce when the rated

operator has prior driving experience outside of MA during the Merit Rating Experience Period.

Exceptions: -The rated operator’s Merit Rating points are 00, 98, or 99; -The rated operator’s Merit Rating points are greater than or equal to 5; -The rated operator has one or more days lapse in coverage within the last 12 months. The discount will be applied to Coverage Parts 1, 2, 4, and 7. Refer to the Miscellaneous Rating Factors page for applicable discount.

M. Welcome Back Credit

The Welcome Back Credit will apply to new business policies, effective 12-1-14 and subsequent, provided the following criteria are met:





In addition to this credit, eligible policyholders will receive their prior continuous years with Commerce, as noted in Rule 26 D.

Exceptions: (1) The policyholder is not eligible for this credit if they were previously insured with Commerce through the MA

Automobile Insurance Plan. (MAIP). (2) The policyholder is not eligible for this credit if they were previously cancelled by Commerce due to Fraud or Underwriting reasons. (DNR, MM1, MM2, MM3, and UNR). (3) The Welcome Back and Shop Smart Credits are mutually exclusive.

In addition, an eligible policy must include vehicles of the private passenger type as defined in Rule 27, or motor homes/camper bodies as defined in Rule 39. Vehicles classified as antiques, motorcycles and miscellaneous motor vehicle types (with the exception of motor homes/camper bodies as defined in Rule 39) are not eligible to receive this credit.

The Welcome Back Credit will continue to apply at the first and second renewal term following the first application of the credit.


RULE 20. VEHICLE LIABILITY SYMBOLS

To determine the Vehicle Liability Symbols, refer to the current ISO Liability and PIP/Medical Payments Vehicle Rating Plan Manual. For each vehicle listed on the Symbols Pages, two LPMP rating symbols are provided: One applicable to BI and PD Liability coverages, and one applicable to Medical Payments and PIP coverages.

The symbols are displayed for each vehicle series, on a vehicle series basis, and apply to all vehicles (all VINs ) in a vehicle series. The LPMP symbols do not vary by model year of vehicle unless otherwise noted.

Liability Symbols are supplied by ISO’s 2010 Liability Symbol program.

Rating Steps:

A. Identify the two LPMP symbols found on the symbols page.*

B. Refer to the Liability and Medical Payments Vehicle Rating Factor Table to determine the LPMP vehicle rating factors association with each symbol.

*If a symbol can not be determined, use an LPMP rating factor of 1.00 for both Liability and Medical Payments/PIP.

LPMP factors do not apply to risks rated in accordance with Rule 49. Named Non-owned.

RULE 21. MODEL YEAR RATING

A. Model Year Defined

The model year of an auto is used in rating physical damage coverage on an actual cash value basis.

The model year of the auto is the year assigned by the auto manufacturer. The model year of rebuilt or structurally altered autos is determined by the model year of the chassis.

B. Rating of Model Years

1. 1990 and Later Model Years: Refer to the Miscellaneous Rating Factors section and apply the model year,symbol and coverage factor to the earliest model year $500 deductible rate displayed in the Rate Section toobtain the actual cash value premium.


a. Refer to the Miscellaneous Rating Factors section and apply the earliest model year, symbol andcoverage factor to the earliest model year $500 deductible rate for the same symbol displayed inthe Rate Section to obtain the actual cash value premium.

supplemental application for massachusetts motor vehicle ... · with the following required...

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