WHO IS ELIGIBLE AND WHAT COVERAGES ARE AVAILABLE?

HOW DOES ONE APPLY?

If you are an individual or company having difficulty buying automobile liability insurance, contact any insurance agent and ask if they are a Certified Producer with the California Automobile Assigned Risk Plan (CAARP). If they are certified, they can help you in applying for automobile liability insurance through the California Automobile Assigned Risk Plan. This individual can estimate your costs and tell you about premium payment plans.

The producer forwards the completed application form with the appropriate deposit to the CAARP office in San Francisco.  The appropriate deposit is either a check or money order for 25% of the estimated annual premium, or the minimum deposit amoutns listed below, whichever is the greater of the two.

If there is no estimated annual premium indicated on the application, the minimum deposit is $250.00 for Private Passenger risks, $500.00 for Commercial risks which do not require higher limits and $1,000.00 for Commercial risks for which higher limits are required by law.

CAARP offers an annual premium payment plan, which consistes of 5 consecutive monthly installment payments, plus a $4.00 per installment fee. 

Each application should have a separate deposit check or money order.  The deposit payment can be submitted by either the applicant or the producer of record.

 WHEN IS COVERAGE EFFECTIVE?

Only Certified Producers may submit applications to the California Automobile Assigned Risk Plan and obtain immediate coverage through CAARP's Electronic Effective Date Procedure (EEDP) or EASi, the Electronic Application Submission Interface.  These procedures allows producers to use their telephone or computer to input coverage data.  The EEDP system   is available for both private passenger and commercial risks.  EASi is currently only available for private passenger risks.  Proposed effective dates are only honored if the producer complies with all of the rules governing the Electronic Effective Date Procedure and EASi.

Note:  Applications submitted without using the Electronic Effective Date Procedure or EASi will become effective at 12:01 A.M. the day after receipt in the Plan office. Future effective dates are also available via the EEDP and EASi. To receive a future effective date, the Plan must receive the application before that requested date.

HOW DO I GET A FINANCIAL RESPONSIBILITY FILING FOR THE DMV?

When an SR22 or SR1P is requested on the application, the Department of Motor Vehicles in Sacramento is notified simultaneously via tape transmission once the assignment is made in the Plan office. Generally, the filings are on-line the DMV within five working days from the assignment date.

WHAT RATES APPLY?

The rates and surcharges applicable to private passenger and commercial assignments are contained in the California Automobile Assigned Risk Plan Manual. All insurance companies are required to use the rules and rates contained in the CAARP manual.

CAN I CHOOSE THE ASSIGNED COMPANY?

NO. Applications are assigned via a random assignment process.

CAN THE PRODUCER CHARGE ME A BROKER'S FEE?

NO. Per §11624.5 of the California Insurance Code, producers CANNOT charge their clients a fee when submitting an application through the California Automobile Assigned Risk Plan. The producer is entitled to a 12% commission which is paid by the insurance company when it issues the policy.

WHERE DO I REPORT A CLAIM?

Each company sends information with every policy about how and where to report claims. Contact the company directly as soon as information about a claim is known.

HOW DO I ADD AN ADDITIONAL VEHICLE?

Once an assignment has been made, the producer and/or insured should contact the company directly for any and all correspondence relating to the adding, deleting or changing of the policy. Endorsements to the policy should not be sent to the Plan office.

WHAT IS CAIP?

CAIP stands for Commercial Automobile Insurance Procedure. It is apooling arrangement operated by CAARP, under which most of the large commercial risks (truckers, taxis, buses, etc..) are assigned to a "servicing carrier" (insurance company) for handling. All the insurance companies share the losses and expenses. Therefore, risks requiring higher limits are less of a drain on the assets of any one insurance company.

WHAT SHOULD I DO WHEN PROBLEMS ARISE?

If you experience a problem with the assigned company regarding the rating or service, call the company directly to try and solve the problem. If the problem cannot be resolved with the company, contact CAARP at 800-622-0954or E-mail caarp@aipso.com and we will assist you.