AIPSO is able to process insurance applications and provides customer support for any residual market mechanism. We
• review applications received from producers for completeness and eligibility
• collect key information for creating data bases
• assign and deliver applications to insurance companies or servicing carriers
• provide an electronic binding system
• offer customer service for answering inquiries from insureds, producers, and insurance companies
• provide electronic coverage verification
AIPSO provides and supports information systems for any residual market mechanism. We
• provide systems planning and design
• coordinate telecommunications, networking, and data transmission
• offer programming expertise
• provide and maintain software, systems, and equipment
AIPSO functions as a backup service provider in support of the auto insurance residual market’s Commercial Automobile Insurance Procedures (CAIPs). Working with a fronting company vendor and a claims vendor, we
• underwrite and issue policies assigned via contract with specific state Plan CAIP mechanisms
• provide customer service to producers and policyholders
• service and settle all claims arising from issued CAIP policies
AIPSO provides processing support for loss prevention programs. AIPSO acts as the liaison with companies that inspect commercial vehicles for safety hazards.
AIPSO provides accounting and investment services for any residual market organization. We
• process account receivables/payables
• maintain general ledgers
• prepare financial statements, reports, and tax filings
• maintain and reconcile bank accounts
• prepare, distribute, and collect assessments
• oversee mechanisms’ investments on a centralized basis
AIPSO takes measures on both a national and state level to identify and combat premium diversion and claims fraud in connection with insurance coverage provided through auto insurance residual market mechanisms. We
• enhance industry’s awareness of auto insurance residual market fraud through seminars
• pursue fraud cases through aggressive legal action
• implement measures to deter premium diversion fraud in state assignment mechanisms, i.e. edit systems, 15-day delays, etc.
• investigate complex claims and other policy activity, including application and premium transactions, as requested
• encourage the sharing of intelligence gathered from claims investigations among auto insurance residual market mechanisms, insurance companies, and regulatory authorities.
• AIPSO's Fraud Containment Initiatives (PDF)
• How to Report Fraud to Local Authorities
• Links to Government and Private Sector Fraud-Fighting Organizations
• Special Investigations Unit (SIU) Contact Information
AIPSO provides legal counsel for residual market organizations. Legal support, coordination and outside counsel supervision is provided when counsel is performed by non-AIPSO attorneys.
AIPSO team leaders, managers, and other professional employees provide management expertise on a consulting basis to residual market mechanisms that are supported, but not managed, by our organization. This includes employee/team management, information management, facilities management, and any other expertise or program associated with managing an office.
AIPSO provides all necessary services for the effective and efficient administration of any residual market mechanism. A governing committee can rely on AIPSO as Plan Manager to provide any and all support, services or products that are needed in the administration of any AIP, JUA, or RF. AIPSO is the organization Plan Manager of residual market mechanisms in 37 states and the District of Columbia. As Plan Manager, AIPSO:
• includes all the services listed here plus management of a local support office. Packaging all the services enables AIPSO to provide economies of scale, and other efficiencies attained through team management.
• employs experienced professionals as individual Plan Managers to work closely with the governing committees. These Plan Managers and support staff are knowledgeable with regard to the local state market and residual market requirements. They enhance our ability to be flexible in serving customer groups with diverse interests.
• assigns an officer to each mechanism as team leader to facilitate and coordinate all communication and delivery of services. This ensures that the expectations and needs of the customer governing committee will be understood and satisfied with maximum quality.
• provides the same level and kind of support for the local office as it does for the AIPSO home office. This includes all employee-related necessities, such as compensation programs, training, and benefits, as well as legal compliance and internal audit. It also includes all information and building support, such as office design, lease management, information resource management and budget/plan programs. The local offices, some of which are small, have all the benefits of a large organization and all the knowledge of a local operation with close proximity to policyholders for optimal customer service.
• provides complete administrative support for all industry meetings. This enables the meetings to proceed efficiently with maximum decision making ability.
AIPSO develops automobile insurance policies designed specifically for the residual market. We
• develop and maintain policy forms, endorsements, applications, technical manuals, and related policy writing forms
• monitor and analyze law changes to assure legally sufficient contract language
• provide policy forms, applications, and related policy writing forms in web-based formats, in addition to bulk supplies for producers
AIPSO provides analysis and administrative support for residual market organizations (e.g. CAIPs, JUAs). AIPSO also functions as a liaison for servicing carriers, residual market organizations, and member companies. We:
• analyze insurance data and operating results, and identify issues that influence the results
• develop Uniform Plan of Operation rule changes
• develop and maintain uniform accounting and statistical rules
• prepare and distribute management information reports
AIPSO provides support for producer licensing and certification for residual market organizations. We:
• maintain an automated system for tracking producer compliance
• support peer review panels
• maintain producer licensing
AIPSO develops and adjusts ratios for insurers to maintain equitable sharing of insurance applications
and participation in operating results. We
• prepare and distribute AIPSO’s statistical call for residual market participation, quota determination, and fulfillment data
• distribute applications to insurers through a random assignment system
• collect, verify, and consolidate servicing carrier premium and loss data
• settle cash balances due to/from servicing carriers
• prepare and distribute member participation reports
• process adjustments to an application processing system, including LAD/CLAD participation and company groupings
• collect insurance companies’ data and apply it to quota distribution calculations for those Automobile Insurance Plans with depopulation mechanisms (i.e. territorial credits, voluntary premium credits, and take-out programs)
• analyze effect of proposed changes to the calculation of quota ratios or members participation, as requested
AIPSO is a licensed rating organization in more than 40 states and the District of Columbia. We
•collect, evaluate, and edit insurance premium and expense data received from statistical organizations that collect the data from insurance companies
•develop rates, rating rules, and supporting policy forms designed specifically for the residual market
•develop individual rates for unique risks not specifically rated from the rating manuals
•present rate indications to Governing Committees
•file rates, rules, and policy forms with regulators on behalf of state residual market organizations
•provide rates, rules, and policy forms documents
AIPSO communicates with state insurance regulatory agencies on various filings. The involvement of both home office and regional office personnel enhances the filing approval process. We:
•act as liaison with regulators on behalf of Governing Committees
•monitor and follow-up the filing process
•clarify intent and need for various filings
AIPSO provides on-site audits of servicing carriers for any residual market mechanism.
AIPSO develops uniform operating rules for residual market organizations. We:
• present and interpret uniform rules to Governing Committees
• draft final rules as adopted
• file rules with regulators