AIPSO functions as a service provider to private passenger and commercial risks in support of the auto insurance residual market’s Commercial Automobile Insurance Procedures (CAIPs), Joint Underwriting Associations (JUAs), Personal Automobile Insurance Procedures (PAIPs) and Private Passenger Pools (PPPs). We

• utilize a fronting company vendor in jurisdictions where Plan paper is not currently approved for use
• underwrite and issue policies assigned via contract with specific state Plan mechanisms
• provide customer service to producers and policyholders
• provide an electronic binding system
• work with a claims vendor to service and settle all claims arising from issued policies
• report premium and loss statistical data to the mechanism’s statistical agents

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
• implement, monitor, and maintain data and systems security
• offer programming expertise
• provide and maintain software, systems, and equipment

AIPSO provides processing support for loss prevention programs. AIPSO acts as the liaison with companies that inspect commercial vehicles for safety hazards. This service will sunset in September 2022.

AIPSO provides accounting and investment services for any residual market organization. We

• process account receivables/payables
• maintain general ledgers
• prepare GAAP/statutory financial statements, reports, and tax filings in accordance with state requirements
• maintain and reconcile bank accounts
• prepare, distribute, and collect assessments
• oversee mechanisms’ investments based on the respective investment policy
• prepare cash flow projections and budgets to ensure prospective cash needs are met
• ensure purchasing of goods and services is performed in compliance with company policy

AIPSO takes measures on both a national and state level to identify and combat premium diversion and other types of fraud in connection with insurance coverage provided through auto insurance residual market mechanisms and Producer involvement.

• enhance industry’s awareness of auto insurance residual market fraud through seminars
• pursue fraud cases through law enforcement referrrals or internal administrative action through Peer Review
• implement measures to deter premium diversion fraud in state assignment mechanisms, i.e. edit systems, 15-day delays, ineligible applicants etc.
• investigate complex application fraud and other policy activity, including application and premium transactions, as requested
• encourage the sharing of intelligence gathered from underwriting investigations among auto insurance residual market mechanisms, insurance companies, National Insurance Crime Bureau (NICB), and regulatory authorities

AIPSO provides legal counsel for residual market organizations. We.
• provide legal support, coordination, and outside counsel supervision is provided when counsel is performed by non-AIPSO attorneys
• provide compliance services for auto insurance residual market mechanisms to ensure operations comply with federal and state laws and regulations

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 collects data and performs calculations for insurers to equitably participate in the operating results of pooling mechanisms such as PAIP, CAIP, JUA, and RF. We
• collect and analyze residual market data written by the servicing providers of the pooling mechanisms, and settle cash balances with the service providers
• collect company voluntary data from the NAIC and statistical agents, and from companies directly, to determine market shares
• calculate company participation ratios, adjusting for depopulation credits where applicable
• develop and issue ratio reports and participation reports that reflect each company’s share of the pooling mechanism
• settle cash with each insured based on their share of the pool’s operating results

Residual market mechanisms’ governing bodies appoint AIPSO as Plan Manager to provide all necessary services, support, and/or products that are needed for the effective and efficient administration of an auto insurance plan, joint underwriting association, or reinsurance facility. AIPSO currently serves as Plan Manager of residual market mechanisms in thirty-seven states and the District of Columbia, and

• provides all the services described in this services listing, along with management of a local support office. Bundling all the services enables AIPSO to apply 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 their local jurisdiction’s residual market requirements, enhancing AIPSO’s ability to be flexible in serving customer groups with diverse interests.
• assigns a team leader to each mechanism to facilitate and coordinate all communication and delivery of services to ensure that the expectations and needs of the governing body will be understood and satisfied.
• provides the same level of support to the local offices as it does at to the AIPSO home office. This includes all employee-related services, such as compensation programs, training, and benefits, as well as legal compliance, audit services, facilities support (office design, lease management), and budget/plan programs. This allows local offices, despite their size, to receive the benefits of a large organization while serving as a local operation with close proximity to policyholders providing optimal customer service.
• provides complete administrative support for all industry meetings, enabling them to proceed efficiently with maximum decision-making ability.
• provides project planning, and project management services.

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 to producers in online formats, in addition to bulk supplies for producers

AIPSO provides analysis and administrative support for residual market organizations (e.g., CAIPs, PAIPs, joint underwriting associations, reinsurance facilities). 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 and post mechanism experience online

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 quota ratios for insurers to maintain equitable sharing of insurance applications. We:

• prepare and distribute AIPSO’s statistical call for residual market participation, quota determination, and fulfillment data
• determine quota shares based on company voluntary writings, depopulation credits, and quota fulfillment
• distribute applications to insurers through a random assignment system
• maintain company information such as affiliate groupings and LAD/CLAD buy-out contracts and apply the appropriate adjustments to quota
• analyze the effect of any proposed changes to the calculation of quotas

AIPSO is a licensed rating organization in more than forty 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 in both print and online formats

AIPSO communicates with state insurance regulatory agencies on various filings and regulatory issues. The involvement of both home office and regional office personnel enhances the filing approval process. We

• act as liaison with regulators and the National Association of Insurance Commissioners (NAIC) on behalf of governing committees
• collaborate with the Legal & Compliance Services staff and other AIPSO personnel to ensure the organization’s compliance with applicable regulations and laws
• represent AIPSO at NAIC National Meetings and other industry related organizations to maintain effective relationships and stay abreast of current regulatory and industry trends
• clarify intent and need for various filings as issues arise

AIPSO Audit Services conducts compliance audits (remotely or on-site) of residual market servicing carriers.

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