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California Automobile Assigned Risk Plan

Welcome to the California Automobile Assigned Risk Plan homepage.

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.

AIPSO Offices' Holiday Schedule

AIPSO's home office in Johnston, Rhode Island and all AIPSO regional offices will be closed on Memorial Day--Monday, May 30.

In addition, AIPSO's Western Region office in San Francisco will close at 2:00 p.m. (Pacific time) on Friday, May 27.

The following regional/Plan operations offices are headquartered in AIPSO’s home office:
• AIPSO’s Northeast Region, serving the Automobile Insurance Plans of Connecticut, Maine, New Hampshire, Pennsylvania, and Vermont, as well as the New Hampshire Automobile Reinsurance Facility
• The Rhode Island Automobile Insurance Plan and Rhode Island Plan Service Center
• The Arkansas Automobile Insurance Plan
• The Associated Auto Insurers Plan of South Carolina
• The Plan operations offices serving the Indiana, Louisiana, and Oklahoma Automobile Insurance Plans
• The Plan management office for AIPSO’s Central Region, serving the Illinois, Iowa, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota Plans

AIPSO’s Mid-Atlantic regional office, headquartered  in Glen Allen, Virginia, serves the  Automobile Insurance Plans of Delaware, District of Columbia, Virginia, and West Virginia.   

AIPSO’s New Jersey Regional office in Mt. Laurel, New Jersey, serves the state’s Personal  Automobile Insurance and Commercial Automobile Insurance Plans, as well as New Jersey’s Special Automobile Insurance Policy program.

AIPSO’s New York regional office, headquartered in New York City, serves the New York Automobile Insurance Plan

AIPSO’s Southeastern regional office, headquartered in Birmingham, Alabama, serves the Automobile Insurance Plans of Alabama, Georgia, Mississippi, South Carolina (CAIP), and Tennessee

AIPSO’s Western regional office, headquartered in San Francisco, serves the Automobile Insurance Plans of Alaska, Arizona, California, Colorado, Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, and Wyoming, as well as California’s Low Cost Auto Insurance program.

All AIPSO offices are scheduled to resume normal business hours on Tuesday, May 31.

 

Announcements

Third Party Designee Procedure

To comply with 2013 Cal. Stat. 380 (former AB 1804), CA. Ins Code §396, which requires an insurer to maintain a verifiable process or adopt a procedure that allows the applicant or policyholder of a personal auto policy to designate one additional person to receive notices, termination, expiration, nonrenewal, or cancellation for nonpayment of premium - this new procedure has been added

If the applicant elects a third party designee, producers must do the following:

  • Once you save/validate and print the private passenger or low cost application, the printed pdf form will include a new section (Section 15 on low cost apps, Section 19 on private passenger apps) that must be completed by hand.  If the applicant selects to elect a third party designee, then the producer must go to AIPSO.com (either CAARP or Low Cost website) – and print/download the form – under “forms” titled - Third Party Designee.  The form must be completed and submitted with the application.      

  • If the applicant declines the third party designee option, then the producer must decline the box on the form and submit it with the application. 

    (Refer to Low Cost/Private Passenger section of application)          

The Third Party Designee form can be used if electing a third party designee midterm on the policy.  As of February 1, 2016, the process will be further automated. 

Enhancements to California's Low Cost Auto Insurance Program

Click here for an important announcement regarding enhancements to California’s Low Cost Auto Insurance (CLCA) Program that will take effect January 1, 2015 in compliance with California Senate Bill 1273.   The announcement also outlines amendments to the CLCA Program that are effective December 1, 2014 in response to directives from California's Department of Insurance.  Included with the announcement are screenshots of changes that have been made to the CLCA Program’s Electronic Application Submission Interface (EASi), as well as two informational documents concerning  CLCA Program eligibility and an Important Note for producers submitting CLCA applications.

Revised Convenience Fee Rates

Effective 12/1/2014, the convenience fee pricing for use of debit card payments for CAARP Private Passenger and CA Low Cost Auto processed through EASi has been revised and reduced by our vendor, Official Payments:

California Low Cost: $1.95

CAARP: $2.95

  (Prior pricing was at $3.99 for California Low Cost and $19.99 for CAARP)

Credit Card convenience fees will remain unchanged:

California Low Cost: $3.99

CAARP: $19.99

Important Notices

The current mailing address for the California Low Cost Automobile (LCA) application, the California Assigned Risk Automobile Plan’s (CAARP’s) private passenger and commercial applications, and other related Plan forms will be:

California Automobile Assigned Risk Plan

P.O. Box 6530

Providence, RI 02940-6530 

 

 

California Region
150 California Street Suite 200 San Francisco, CA 94111
Monday - Friday 8:00 - 4:00 PT
Phone: (800)622-0954  Fax: (415)421-4013  Email: caarp@aipso.com