How will it be decided that a driver has to get insurance through the Assigned Risk Plan (MAIP)?
As part of the managed competition, the Commissioner of Insurance will allow insurers to “underwrite” drivers based on driving histories and coverage limits. If no insurer is willing to offer voluntary coverage to the driver, they will have to obtain coverage through the MAIP. Companies may decline to write coverage for drivers with points on their driving record. Even drivers with “clean in three” records may be declined voluntary coverage for other reasons. However, voluntary companies may not cancel or non-renew a policy if the operators all have “clean in three” records. Voluntary companies may also decline to accept policies with low limits, even if all operators have clean driving records. We recommend limits of at least 100/300 for those drivers who are just starting out, and higher limits of 250/500 for insured’s who own their house or have other valuable assets.
