Welcome to the California Automobile Assigned Risk Plan homepage.
- Just added! The first seminars scheduled for 2009 have been added to the 4th Qtr CAARP Seminar Registration Form. Go to the Forms Library for more information.
- Check out EASi 2.0! If you wish to submit your CAARP Private Passenger or Low Cost application electronically, use EASi 2.0. For more information about EASi 2.0 check out the CAARP_Update_2008_2Q edition located in the Reference Library. Certified producers who wish to get their EASi Username and Password, E-mail CAARP at caarp@aipso.com
The CALIFORNIA
AUTOMOBILE ASSIGNED RISK PLAN (CAARP) was created in 1947 by the state legislature with
the essential purpose to provide automobile liability insurance to those who "in good
faith" are entitled to but are unable to procure such insurance through ordinary
methods. The statute indicates a legislative intent to encourage drivers to seek insurance
in the voluntary market using the assigned risk plan only as a last resort.
What is the Assigned Risk Plan? It is a processing center by which people who have
trouble buying automobile insurance are put in touch with an insurance company which will
insure them. From then on, the person and the certified producer communicate with the
insurance company as if they had chosen the company. As part of the initial processing,
the Plan makes financial responsibility filings with the Department of Motor Vehicles if
requested on the application. If the insured or producer is having difficulty in getting
the attention of the insurance company, we attempt to assist. When appropriate we will
also assist insurance companies in communicating with insured and certified producers.
The assigned risk plan is not an insurance company. Its rates are recommended by
CAARP's Advisory Committee and approved by the Department of Insurance. It is the Advisory
Committee’s obligation to propose rates and run the Plan on a self-sustaining basis.
The financial backing necessary to assume the risk comes from companies who are required
by law to participate in the plan.
Applicants to the plan are divided among these insurance companies in proportion to the
amount of automobile insurance business each company writes in the state. For example, a
company which insures 10 percent of the cars in California's regular market insures 10
percent of the applicants to the assigned risk plan.
Only certified producers can submit applications to the California Automobile Assigned
Risk Plan. Any agent/broker with a California fire & casualty license can become a
certified producer with CAARP. Agents/brokers must complete an application for CAARP
certification and include a copy of their current California fire & casualty license.
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