Missouri AIP Membership

• Effective September 1, 2008, the Missouri Automobile Insurance Plan will replace the Missouri Joint Underwriting Association as the state’s automobile insurance residual market mechanism.



• A subscriber questionnaire has been mailed to all companies licensed to write automobile insurance in Missouri. This questionnaire must be completed and returned promptly to AIPSO in order to (1) calculate assignment quotas and compile assignment information for each subscriber to the Missouri Plan, and (2) position the Plan for the selection of its Governing Committee. Upon receipt of a completed questionnaire, AIPSO will forward to each subscriber company the Missouri AIP’s Plan of Operation, and its Manual of Rules and Rates.



• Companies licensed to write auto insurance in Missouri will receive private passenger auto applications for insurance from the Plan on or about September 1, 2008. Assignments to each company will be based on the proportion of private passenger auto business it wrote voluntarily in Missouri during the second prior year. Statistical agent data for calendar year 2006 will be used to establish each company’s quota of Plan business for risk assignment purposes in 2008.



• Expected Plan volume, based on the Missouri Joint Underwriting Association volume of the past few years, is estimated at 75-100 assignments per year. The Missouri AIP’s Plan of Operation provides companies with the option to “buy out” from their statutory obligations to write and service Plan private passenger policyholders through a Limited Assignment Distribution (LAD). A solicitation for companies interested in serving as a LAD servicing company was previously issued, and the Plan Governing Committee at its March 7, 2008 meeting approved the appointment of State Farm Mutual Insurance Company as the Plan’s LAD servicing company.
  
  Detailed information concerning the LAD Program and 2008 quota distribution was previously distributed to subscribers. For additional information on the LAD Program, please refer to circular CIR (MX) 08-04 dated March 19, 2008, which can be accessed by clicking on the “Online Circulars” link at left. While the circular indicates an expired response date, companies still have the opportunity to submit LAD buyout agreements.



• The Plan’s Commercial Automobile Insurance Procedure (CAIP) will serve as the mechanism for the pooling of premiums, losses, and expenses for Plan commercial auto business. Member companies will participate in operating results for a period of 11 years, or until the policy year is closed. Commercial applications received by the Plan will be forwarded to one of the companies-National Continental Insurance Company or New Hampshire Insurance Company-selected as CAIP servicing carriers by the Plan’s Governing Committee.



• A Private Passenger Policy Forms and Endorsements Portfolio, a Commercial Policy Forms and Endorsements Portfolio, Symbol and Identification Manual, and the Accounting and Statistical Manual for the new Missouri Plan are now available under the “Online Policy Forms and Endorsements” link. Access to the Forms and Endorsement Portfolios and the Symbol and Identification Manual is available to registered users. AIPSO provides the Online Policy Forms & Endorsements only to licensed producers, subscriber companies, and state insurance regulators who participate in the automobile insurance residual market and who are registered to access the website. Customers who are registered to use the AIPSO ISO Symbols & Identification Manuals may access the Online Policy Forms & Endorsements using their Symbols registration information. First-time users may register by clicking



• The Missouri Automobile Insurance Plan hosted a series of seminars designed to provide detailed instruction on the submission of applications to the Plan, use of the EASi system, and other Plan policies and procedures. This course was open to all licensed producers, as well as to company representatives interested in attending. Licensed attendees who completed the Missouri Automobile Insurance Plan’s Producer Procedure Course received three (3) Continuing Education Credits.



• Questions about the new mechanism may be directed to MOAip@aipso.com or (888) 706-6100.




Missouri AIP Governing Committee

The Missouri AIP will be administered by a Governing Committee comprising ten members: two representatives each from the American Insurance Association (AIA), the Property Casualty Insurers Association of America (PCI), and non-affiliated insurance companies; two at-large insurance company representatives; one licensed producer; and the Director of Insurance (or his or her designate).

In accordance with the provisions of the Missouri AIP Plan of Operation, a Governing Committee has been constituted as follows:

• American Insurance Association (AIA)

Travelers Companies, Inc.

USAA

• Property Casualty Insurers Association of America (PCI)

Automobile Club Inter-Insurance Exchange

Liberty Mutual Insurance Company

• Non-affiliated Insurance Companies (NAF)

Farmers Insurance Company

State Farm Mutual Automobile Insurance Company

• At-large Company Representatives

AIG/New Hampshire Insurance Company

Shelter Mutual Insurance Company

• Producer Representative (as appointed by the Director of Insurance)




• Missouri Department of Insurance, Financial Institutions, and Professional Registration (ex officio)

Subscribers to the Missouri AIP will meet annually. A Notice of the Annual Meeting is sent to all subscribers at least 45 days prior to the date of the meeting.

Missouri AIP Subscription Questionare

MOAIP Subscription Form