What Kind of Plate? What Kind of Policy? -
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SPONSORED BY What Kind of Plate? What Kind of Policy?
Transcript of What Kind of Plate? What Kind of Policy? -
SPONSORED BY
What Kind of Plate?What Kind of Policy?
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Donna M. McKennaMAIA Vice President ofMAIA Vice President of CommunicationsNovember 2012
• This program is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent p q pprofessional person should be sought.
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RULE 27. PRIVATE PASSENGER DEFINITION (AIB/MAIP Edition)(AIB/MAIP Edition)
A. A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31 regarding the transportation of fellowconditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire.
RULE 27. PRIVATE PASSENGER DEFINITION (AIB/MAIP Edition)(AIB/MAIP Edition)
B. A motor vehicle that is a pick-up or van, that is owned or leased under contract for a continuous period of at least 12 months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and
1 has a gross vehicle weight rating of less than 10 000 pounds or1. has a gross vehicle weight rating of less than 10,000 pounds or has an ISO or AIB symbol, and
2. is not used for the delivery or transportation of materials unless such use is incidental to the insured’s business of installing, maintaining or repairing furnishings or equipment.
C. Gross Vehicle Weight Rating means the value specified by the manufacturer as the loaded weight of a single vehicle.
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RULE 27. PRIVATE PASSENGER DEFINITION (AIB Edition)
D At the option of the company an eligible vehicle under thisD. At the option of the company, an eligible vehicle under this rule whose title has been transferred to a trust may be written under the Massachusetts Automobile Insurance Policy, subject to the following requirements: the grantor of the trust must be an individual or lawfully married individuals residing in the same household, and must be the only insured(s) named in Item 1 of the Coverage Selections Page. All vehicle(s) insured under the policy must be owned by the trust. A vehicle owned p y yby a trust in which the grantor is a partnership or corporation must be written under a commercial auto policy.If a motor vehicle is leased as described in the foregoing paragraphs, and the lessee is obtaining the insurance, the policy must be issued to the lessee as named insured and Endorsement M-0070-S, “Coverage For Anyone Renting An Auto To You,” must be attached to the policy.
Rule 27 – The following companies have adopted ith th MAIP AIB i f R l 27either the MAIP or AIB version of Rule 27:
AIG (AIB – ISO Symbols)Amica (AIB - ISO Symbols)Commerce (AIB – ISO Symbols)Electric (AIB – ISO Symbols)Farm Family (AIB – ISO Symbols)Green Mountain (AIB–ISO Symbols)Liberty Mutual (AIB – ISO Symbols)
Allstate (AIB Rule – EGR Symbols)
Arbella (AIB – ISO Symbols)
Citizens/Hanover (AIB – ISO Symbols)Encompass of MA (AIB – ISO Symbols)Fireman’s Fund (AIB – ISO Symbols)Harleysville Worcester (AIB–ISO Liberty Mutual (AIB ISO Symbols)
MAIP (all MAIP policies)National Grange (AIB – ISO Symbols)One Beacon (AIB Symbols)Plymouth Rock (AIB – ISO Symbols)Quincy Mutual (AIB Symbols)State Farm (AIB – ISO Symbols)Vermont Mutual (AIB – ISO Symbols)
y (Symbols)
Metropolitan (AIB – ISO Symbols)
Norfolk & Dedham (AIB – ISO Symbols)Peerless (AIB – ISO Symbols)
Preferred Mutual (AIB – ISO Symbols)Safety (AIB – ISO Symbols)
Travelers of MA (AIB – ISO Symbols)
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But Who is Marching to a Different Drummer?B k St d d I C ACE Pl tiBankers Standard Insurance Company ACE Platinum Portfolio
Bankers Standard follows Countrywide PAP FormatEligibility - AutoAn Auto policy shall be used to afford coverage to private passenger autos and motor vehicles considered as private passenger autos in the “Definitions” rule if:A h f d b dA. They are written on a specified auto basis, andB. They are owned by an individual, by spouses who are residents
of the same household, or by two or more resident relatives.
But Who is Marching to a Different Drummer?B k St d d I C ACE Pl tiBankers Standard Insurance Company ACE Platinum Portfolio
Eligibility -- Recreational VehiclesAn Auto policy shall be used to afford coverage to motorcycles, motor homes, golf carts or other similar type vehicles, and snowmobiles if:A. They are written on a specified vehicle basis, andB They are owned by an individual by spouses who are residentsB. They are owned by an individual, by spouses who are residents
of the same household, or by two or more resident relatives.
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But Who is Marching to a Different Drummer?Bankers Standard Insurance Company ACE Platinum Portfoliop y
DefinitionsA. A private passenger auto is a four wheel motor vehicle, other than a
truck type, owned or leased under contract for a continuous period of at least six months, and1. not used as a public or livery conveyance for passengers, and2. not rented to others.
B. A motor vehicle that is a pickup, panel truck or van shall be considered a private passenger auto if:1. owned by an individual or by spouses who are residents of the
same household;same household;2. not customarily used in the occupation, profession or business of
the insured, other than farming or ranching; and3. the vehicle has a Gross Vehicle Weight of less than 10,000 pounds.
C. A motor vehicle owned by a farm co-partnership or a farm family corporation shall be considered a private passenger auto owned by two or more relatives who are residents of the same household if:1. it is principally garaged on a farm or ranch, and2. it otherwise meets the definitions in A. and B. above.
But Who is Marching to a Different Drummer?Bankers Standard Insurance Company ACE PlatinumBankers Standard Insurance Company ACE Platinum Portfolio
DefinitionsLiability Coverage Only
D. A motor vehicle that is a pickup, panel truck or van used in the business of the United States Government, by an employee of the Government, shall be considered a private passenger auto if:1. owned by an individual or by spouses who are residents of1. owned by an individual or by spouses who are residents of
the same household;2. not customarily used in any other occupation, profession or
business of the insured, other than farming or ranching; and3. the vehicle has a Gross Vehicle Weight of less than 10,000
pounds.
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But Who is Marching to a Different Drummer?GEICO ( di t it )GEICO (a direct writer)
Rule PPA-01. Definition – All CoveragesA private passenger automobile is:A. a motor vehicle of the private passenger type that is not used
as a public or livery conveyance for passengers nor rented to others pursuant to the terms of a motor vehicle rental agreement; or
B utility vehicle of the pick-up panel or van body type with aB. utility vehicle of the pick-up, panel or van body type with a gross vehicle weight of 15,000 pounds or less, that is not used as a public or livery conveyance for passengers, but rather is used for personal and family pleasure, commuting and/ or business purposes. A utility vehicle that is customarily used for wholesale or retail delivery or commercial transportation of property is excluded from the private passenger automobile definition.
But Who is Marching to a Different Drummer?GEICO (a direct writer)GEICO (a direct writer)
Rule PPA-03. ClassificationsA private passenger automobile is:B. Vehicle Definitions
1. Use of the Automobilea. Pleasure/Farm Use – The automobile is not used in business and
is not driven to and from work or the automobile is principally garaged on a farm or ranch and is not used in any occupation, profession or business other than farming.
b. Commuting Use – The automobile is not used for business and is driven to and from work.NOTE: The phrase “driven to and from work” shall be deemed to include use in carpools, other share-the-ride arrangements or driving part way to and from work, such as to a railroad or bus depot, whether or not the car is parked at the depot during the day. It shall also be deemed to include use to and from school.
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But Who is Marching to a Different Drummer?GEICO (a direct writer)
Rule PPA-03. ClassificationsC. Business Use – The use of the automobile is required by or
customarily involved in the duties of the applicant or any other person customarily operating the automobile in his occupation, profession or business other than driving to or from his principal place of occupation, profession or business.
But Who is Marching to a Different Drummer?IDS Property (a direct writer that has aligned itself withIDS Property (a direct writer that has aligned itself with Costco and Ford Motor Credit) created their own Standards:
Rule 1. Vehicle EligibilityA. Vehicle Type
1. Four wheel private passenger cars2. Pickup and van type vehicles with load capacity not exceeding
2,000 lbs.3. Vehicles in the Miscellaneous types ruleyp
B. Vehicle usage including personal, business or commercial purposes but not including:1. Use as a public or livery conveyance2. Rental to others3. Wholesale or retail delivery
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But Who is Marching to a Different Drummer?IDS Property (a direct writer that has aligned itself with Costco and Ford Motor Credit) created their own Standards:
C. Ownership, including leased under long-term contract by:1. An individual2. Husband and wife or relatives resident in the same
household3. A corporation or partnership if the vehicle is furnished to
and used by an individual, or member of his household for non business use.
But Who is Marching to a Different Drummer?Occidental Fire and Casualty:
Vehicle Use Definitions – The manner and frequency in which a vehicle is used has a direct bearing on the rate for that vehicle. Occidental applications for insurance contain questions regarding the use of vehicles. Please call if there are any questions about the way a customer uses their vehicles.Vehicle use is defined as follows:1 Pl hi l i t d i f th d ib d1. Pleasure: vehicle is not used in any of the ways described
below;2. Commute: vehicle is used primarily to commute to and from
work or school;
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But Who is Marching to a Different Drummer?O id t l Fi d C ltOccidental Fire and Casualty:
Vehicle use is defined as follows:3. Business: vehicle is used during the course of the driver’s
occupation, including the visitation of multiple places during the day. Examples include, but are not limited to, sales representatives, job supervisors, meter readers. Commuting to and from a place of business at the beginning and end of the day only is not considered business use;day o y s ot co s de ed bus ess use;
4. Artisan: vehicle is used by a tradesman or artisan to haul tools and equipment to job sites. Examples include, but are not limited to, carpenters, dry-wallers, electricians, landscapers, masons, painters, plasterers, plumbers, roofers, surveyors;
But Who is Marching to a Different Drummer?Occidental Fire and Casualty:Occidental Fire and Casualty:
Vehicle use is defined as follows:5. Delivery: vehicle is used for the delivery of products, such as pizzas,
newspapers, USPS mail;6. Farm: vehicles used almost exclusively on a farm or ranch with only
occasional use on public roads may be classified as farm use.Unacceptable Risks:1. Risks in which a driver does not comply with the foreign driver
license and experience rule of this manual or the laws of pMassachusetts.
2. Any vehicle not in the ISO Manual;3. Vehicles with an ISO symbol greater than 53 for model years 2011 and
later, or greater than 23 for model years 2010 and older (may be acceptable for liability coverage). A deductible for $1,000 is required for these vehicles;
4. Vehicles in excess of 15 years old which have physical damage coverage
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5. Pickups/vans larger than one (1) ton 6. Customized or conversion vehicles (includes any vehicle with parts 6. Customized or conversion vehicles (includes any vehicle with parts
which were not available as standard equipment at the time of original manufacture, and includes specialized painting, decals, etc.)
7. Any flat bed or stake bed trucks8. Antique, classic, replica, custom-kit or limited production vehicles,
unless prior approval is received9. Vehicles designed for off-road use (all-terrain, dune and swamp
buggies, and so forth)10. Customized, converted or altered vehicles (including over-sized tires,
l d i i d i i d l i daltered suspensions, customized painting or decals, customized interiors, parts which are intended to increase speed or performance, etc.)
11. Gray Market vehicles (vehicles not originally manufactured to meet U.S. standards)
12. Emergency vehicles
13. Recreational vehicles14 Vehicles with other than four wheels (one ton pickup trucks14. Vehicles with other than four wheels (one ton pickup trucks
with dual rear wheels are acceptable except when used for business)
15. Vehicles with salvage titles or restored vehicles for physical damage coverage (acceptable for Liability only)
16. Trailers with physical damage coverage17. Commercial vehicles, including vehicles owned, leased, or
used by a company corporation, partnership, or D.B.A. This includes the following uses:a. Vehicles rented to others (“U-Drive” rental vehicles);b. Vehicles used in speed contests or exhibitions;c. Vehicles used for taxi service, or vehicles used to transport
nursery or school children, migrant workers, or hotel/motel guests;
d. Pickup trucks or vans used for business of any kind.
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18. Vehicles on this chart:
But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Rule 1. Massachusetts Automobile Insurance Policy Eligibility/Definition of Private Passenger Auto; Permitted Named InsuredFor purposes of this rule, the term "private passenger auto" means a land motor vehicle of the private passenger, pickup body, or cargo van type, designed for operation principally upon public roads, with at least four (4) wheels and with a gross vehicle weight rating ofat least four (4) wheels, and with a gross vehicle weight rating of 12,000 pounds or less according to the manufacturer’s specifications. However, the term does not include step-vans, parcel delivery vans, or cargo cutaway vans or other vans with cabs separate from the cargo area.
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But Who is Marching to a Different Drummer?Progressive Direct:The named insured must be a natural person. Corporations or partnerships cannot be listed as a named insured, but may be listed as an “Additional Interest Insured.” An “Eligible to be Rated Driver” refers to all persons above the legal age to drive who are related to and reside with the named insured, and any other person who regularly or frequently drives a covered vehicle, other than excluded drivers and drivers with a learner’s permit. All eligible to be rated p gdrivers are required to be disclosed at the time of application.
But Who is Marching to a Different Drummer?Progressive Direct:Unacceptable Risks:Only private passenger automobiles are acceptable under our program. However, the following risks are not acceptable:
A. Named insureds who have never been licensed, unless the named insured is excluded from coverage.
B. Drivers that are under the minimum age for state licensing.C. Vehicles that do not have a garaging address.D. Vehicles that have a principal garaging location in Michigan
or Canada.
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But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Unacceptable Risks:E. Vehicles used for;
1. Racing2. Carrying persons or property for compensation or a fee,
including but not limited to: limousine, taxi, or other livery services (does not apply to shared expense car pools), pickup or delivery of magazines, newspapers, food, or any other
d tproducts;3. Lease or rental to others by the applicant;4. Emergency services; or5. Business use that does not meet the acceptable use standards
as defined in Rule 27.
But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Unacceptable Risks:F. Vehicles:
1. equipped with altered suspensions, which are suspensions that are homemade, custom-built, or modified, and include lift kits greater than 4 inches (usually installed on off-road vehicles or street rods). However, lift kits of 4 inches or less, low riders with hydraulics kit cars and dune buggies are acceptable ifwith hydraulics, kit cars, and dune buggies are acceptable if registered for street use;
2. equipped with snowplowing equipment;3. not registered for street use;4. equipped with cooking equipment or bathrooms, except the
Volkswagen Eurovan and Volkswagen Vanagon, unless toilet facilities have been installed;
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But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Unacceptable Risks:
G. Vehicles with a maximum speed less than 55 mph if they are the only motor vehicle(s) on the policy.
H. Any vehicle regularly available to non-listed driversI. Policies where an "eligible to be rated driver" has a permanently
revoked license, unless that driver is excluded from coverage.l h h b d f f dJ. Applicants who have ever been convicted of insurance fraud or
auto theft, or who have had two or more total fire or total theft losses in the last three years.
K. Commercial vehicle types including, without limitation, step-vans, panel vans, parcel delivery vans, or cargo cutaway vans or other vans with cabs separate from the cargo area.
But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Unacceptable Risks:
L. Named operator or non-owner policies.M. Applicants who have ever had a policy canceled or non-
renewed by the Company for, or who have committed, fraud or misrepresentation in connection with an application for insurance or in the presentation or settlement of a claim.
N A li t h h h d li l dN. Applicants who have ever had a policy canceled or non-renewed by the Company because of, or who have issued an unauthorized payment in connection with an application for insurance or a policy.
O. Policies where all vehicles are principally garaged out of state
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But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Unacceptable Risks:
P.Policies that have vehicles garaged at two different addresses and drivers in two different households, with the following exceptions:1. student or military risks (e.g., spouse of
insured/unmarried child of insured);2 d i d h t diff t h h ld (2. named insured has two different households (e.g., one
permanent home and one vacation home);3. drivers who live at different addresses but all vehicles are
garaged at one place; or4. married couples in the process of divorce and the vehicle is
still considered community property.
But Who is Marching to a Different Drummer?Progressive Direct:Unacceptable Risks:
Q. Two or more private passenger automobile insurance policies written for the same household, with the following exceptions:
1. policies with 5 or more cars must be split into two policies;2. children who own their own vehicle and do not drive the
parents’ vehicle and parents do not drive vehicle of child; exclusions are required
3. unrelated residents/roommates.
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But Who is Marching to a Different Drummer?Progressive Direct:Unacceptable Risks:
R. Vehicles that are owned or leased by a partnership or corporation, unless:
1. the vehicles are customarily operated by the named insured or a resident relative for pleasure or commuting;
2. all drivers are household members and are listed on the policy;
3. no more than four such vehicles are owned or leased by the partnership or corporation; and
But Who is Marching to a Different Drummer?P i Di tProgressive Direct:Unacceptable Risks:
4. the partnership or corporation does not engage in a business of:
a. carrying persons or property for compensation or a fee, including, but not limited to; limousine, taxi, or other livery services (does not apply to shared expense car pools), pickup or delivery of magazines newspapers food or anypickup or delivery of magazines, newspapers, food, or any other products; or
b. selling, leasing, repairing, parking, storing, servicing, delivering, or testing vehicles.
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But Who is Marching to a Different Drummer?Progressive Direct:
Progressive has removed the following AIB/MAIP rules from their manual:Rule 13. Installment Payment of PremiumsRule 14. Deposit PremiumRule 27. Private Passenger Definition
Rule 51. Eligibility (AIB Commercial Auto Manual)d d ll dC. Individually Owned Autos
Individually owned pickups, panel trucks or vans. Refer to the Private Passenger Auto Insurance Manual.
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Excerpted from 540 CMR 2.05A private passenger motor vehicle for registration purposes is any vehicle:
(a) which has a vehicle weight rating or curb weight of six thousand pounds or less as per manufacturer's description of said vehicle or is a sport utility vehicle or passenger van; or which is a pickup truck or cargo van of the ½ TON, 3/4 TON or 1 TON class as per manufacturer's description of said vehicle; or which is a vehicle used solely for official business by any college or university police y y y g y pdepartment whose officers are appointed as special police officers by the colonel of the state police under M.G.L. c. 22C, s. 63; and,
Excerpted from 540 CMR 2.05Plate Eligibility – Excerpted from 540 CMR 2.05
(b) which, if a pickup truck or cargo van, is registered or leased to an individual, and is used exclusively for personal, recreational, or commuting purposes; and,
(c) which is not described in elsewhere in 540 CMR 2.05.
The terms pleasure vehicle, passenger vehicle, passenger car, automobile and pleasure passenger vehicle are synonymous withautomobile and pleasure passenger vehicle are synonymous with Private Passenger Motor Vehicle as defined herein.
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A commercial vehicle, is any vehicle which is not a private passenger motor vehicle,not a private passenger motor vehicle, antique motor car, motorcycle, trailer, semi-trailer, auto home, house trailer, taxicab, ambulance, hearse, livery vehicle, bus, school bus, or school pupil transport vehicle, including the following:
(a) Any vehicle which has a vehicle weight, or curb weight, of more than six thousand pounds, as per the manufacturer's description of said vehicle, unless such vehicle is a sport utility vehicle or passenger van, or a pickup truck or cargo van meeting the definition of private , p p g g ppassenger vehicle;
(b) Any vehicle which has five or more wheels on the ground; (c) Any pickup truck or cargo van, owned by a partnership, trust or
corporation unless such vehicle meets the definition of private passenger motor vehicle;
(d) Any pickup truck or cargo van, if on the bed of the vehicle tools supplies materials orof the vehicle tools, supplies, materials or equipment are transported to or from a job site, or are stored for use at a job site, provided that transportation to or storage for use at a personal project for which no compensation is received shall not be considered in connection with a “job site;”
(e) Any vehicle, if on the roof or sides of the vehicle, tools, supplies, materials or equipment are transported to or from a job site or arematerials or equipment are transported to or from a job site, or are stored for use at a job site, provided that transportation to or storage for use at a personal project for which no compensation is received shall not be deemed in connection with a “job site;”
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(f) A vehicle which has business advertisements or business markings thereon; providedor business markings thereon; provided however that markings limited to the name, address, telephone number, and logo of any corporation whose personal property is exempt from taxation under M.G.L. c. 59, s. 5, Clause Third or Tenth shall not be considered business advertisements or business markings for purposes of 540 CMR 2.05;
(g) A vehicle used for hire to plow;(h) A vehicle used for hire to transport or store goods wares or(h) A vehicle used for hire to transport or store goods, wares or
merchandise, provided that if the vehicle is owned by an individual, has a maximum load carrying capacity of 1,000 pounds or less, and is so used on only a part-time basis, such vehicle shall not be deemed a
commercial vehicle under 540 CMR 2.05(3)-commercial vehicle (h) “Part-time basis” shallcommercial vehicle (h). Part time basis shall mean that not more than 40% of the total usage of the vehicle is devoted to the transporting or storing of goods, wares or merchandise.
(i) vehicle used to transport or store goods, wares or merchandise intended for sale in the ordinary course of the vehicle operator’s or owner’s business, provided that if the vehicle is owned by an individual, has a maximum load carrying capacity of 1,000 pounds or less, and is so used on only a part-time basis, such vehicle shallor less, and is so used on only a part time basis, such vehicle shall not be deemed a commercial vehicle under 540 CMR 2.05(3)-commercial vehicle (i). “Part-time basis” shall mean that not more than forty percent of the total usage of the vehicle is devoted to the transporting or storing of goods, wares or merchandise.
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1. Your client, who owns a Chevy one-ton pickup truck (GVWR 11,500 lbs ISO Symbol 19) gets a new job working for Build King Builderslbs., ISO Symbol 19), gets a new job working for Build King Builders. Your client will be picking up materials each morning at the lumber store and delivering the materials for his day’s work at the jobsite. He currently has a personal auto policy and private passenger plates. What should he do? a. He can keep his current policy and plate.b. He needs a new commercial plate and new commercial policy.c. He needs to get a new commercial plate but can keep his personal
lipolicy.d. He can keep his personal plate but needs a commercial policy.
1. And the answer is … under AIB and MAIP rules …H d t t i l l t b t k hi lc. He needs to get a new commercial plate but can keep his personal policy.It does NOT fit the Bankers Standard definition because it is a truck used in the owner’s business other than farming or ranching.It does NOT fit the GEICO definition because it is a “utility” vehicle (pick-up, panel or van body type) used for delivery or commercial transportation, but GEICO’s policy changes permit delivery of goods or materials “incidental to your business of installing maintaining or repairing furnishing or equipment ” Soinstalling, maintaining or repairing furnishing or equipment. So, how lucky are you feeling today???It fits the IDS definition if payload is 2,000 lbs. or less.It fits the Occidental Artisan definition.It fits the Progressive definition if it has a GVWR of less than 12,000 lbs. and an S2005 rating symbol … but the delivery of materials to the jobsite is a problem.
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2. Your best commercial client’s son just got a job working two nights a week delivering pizza forworking two nights a week delivering pizza for Papa Gino’s. He’s paid $9.00 per hour for doing prep work for the pizzas, washing dishes, and delivering pizzas when necessary. In addition to his hourly pay, he is reimbursed 60 cents per mile for delivery. He is using his mother’s BMW to get to and from work and deliver the pizzas. It’s insured on a personal auto policy and has private passenger plates.A. The existing personal policy and private passenger plates are g p p y p p g p
okay.B. Both need to be switched to commercial.C. The personal policy is okay but they must get commercial plates.D. A commercial policy, plate, and a sign on the vehicle are required.
2. And the answer is … under MAIP/AIB rules …a The existing personal policy and privatea. The existing personal policy and private
passenger plates are okay.But what about the other company rules???
It fits the Bankers Standard definition.It fits the GEICO definition.It does not fit the IDS definition … Pizza sure sounds like retail delivery to me!It fits the Occidental Delivery definition.yIt does not fit the Progressive definition because vehicles used for food delivery are unacceptable risks.
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3. Ralph Cramden, dba Ralph the Roofer, trades in his Chevy S-10 (4,350 lbs. GVWR—Registered Weight of 5,000 lbs.) pickup for a Ford F-350 g g , ) p p(12,500 GVWR—Registered Weight of 13,000 lbs. and ISO symbol). He currently has a personal auto policy and a commercial plate. Ralph is 22 years old and has been driving for 5 years. What should Ralph do? a. He can keep his personal policy and commercial plate.b. He can keep his personal policy and commercial plate, but must
have class 30 (business use).c. He needs a commercial policy and commercial plate.
H d l li d l l td. He needs a personal policy and personal plate.
3. And the answer is … under MAIP/AIB rules …a. He can keep his personal policy and commercial plate.p p p y pBut what about the other company rules???
It does NOT fit the Bankers Standard definition because it is a truck used in the owner’s business other than farming or ranching.It does NOT fit the GEICO definition because it is a “utility” vehicle used for commercial transportation (shingles, etc.), but, again, GEICO’s policy changes permit delivery of goods or materials “incidental to your business of installing, maintaining or repairing furnishing or equipment.”It fits the IDS definition if payload is 2 000 lbs or lessIt fits the IDS definition if payload is 2,000 lbs or less.It fits the Occidental Artisan definition.It does NOT fit the Progressive definition because it has a GVWR over 12,000 lbs. -- UNLESS it has an S-2005 symbol and is not used for delivery.
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3. But … if Ralph is using his truck in his roofing business, are there any other state or federal laws and regulations with which he must gcomply?
The Federal Motor Carrier Safety Act (FMCSA) requires that any vehicle over 10,000 pounds GVWR involved in interstate commerce is a “commercial vehicle.” Some of the provisions of the FMCSA require DOT numbers, signage, a commercial driver’s license (CDL), medical cards, random alcohol and substance testing, etc. depending on vehicle size, weight and usage. Unless you want to become an “ ” h l ld h d“expert” on the regulations, I would suggest that you not try to advise your client on these issues, since fines for non-compliance are HUGE. You might want to suggest that your client consult a specialist on compliance.
3. There are two such companies in Massachusetts
Fleet Safety Services, Inc. http://fleet-safety.com12 Harvard Street - Worcester, MA 01609Phone: 800-215-2490Fax: 508-831-7611
The Transportation Advisor, Inc.http://transportationadvisor comhttp://transportationadvisor.comP.O. Box 558 - Palmer MA 01069Local: 413-283-8385Toll Free: 800-608-8890
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3. That said, it looks like:If this roofer is operating in Massachusetts as well as any other stateIf this roofer is operating in Massachusetts as well as any other state, it IS a commercial motor vehicle under the provisions of the Federal Motor Carrier Safety Regulations – because it has a GVWR of more than 10,000 pounds. This means that the vehicles must have DOT numbers, vehicle markings, and medical cards for all drivers – at the very least!
3. In addition:1 A CDL li d d l h l d b t t ti COULD1. A CDL license and random alcohol and substance testing COULD
be required if the roofer is carrying any hazardous materials or substances; and
2. Driver logs COULD be required if the driver is traveling over a one (49 CFR 395) hundred (100) air mile radius from his/her base of operation crossing state lines.You may find the Commercial Motor Vehicle chart (Appendix A pp. 69-71)contained in your handout helpful. It highlights the
i li i f hi l i h GVWR f 10 001various compliance issues for vehicles with a GVWR of 10,001 pounds to 26,000 pounds and for vehicles weighing over 26,000 pounds.
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3. What if Ralph is operating ONLY in Massachusetts. What then?1 L t th M h tt DOT d t d t f th1. Last summer, the Massachusetts DOT adopted most of the
FMCSA requirements for commercial vehicles involved in intrastate commerce.
2. As a result, he would NOT need DOT numbers, but he WOULD need everything else that would be required of a commercial motor vehicle involved in interstate commerce.
Q & AY i hb h F 350 i k t k4. Your neighbor, a mason, purchases an F-350 pickup truck with a GVWR of 9,600 lbs. Before he takes delivery of the pickup, he has it retrofitted with a dump body which he plans to use in his masonry business. He also plans to purchase a sander for the dump body so that he can sand city streets during snowstorms. The addition of the dump body does not change the GVWR of the truck. What kind of policy does he need?a. He needs a personal policy.b. He needs a commercial policy because the addition of
the dump body means the vehicle is no longer a pickup.
52
10/22/2012
27
Q & AA th i hb t l t5. Another neighbor, a carpenter, supplements his income in the winter by plowing driveways and parking lots. He currently has a personal auto policy, class 30, and commercial plates on his F-150 pickup truck with a GVWR of 8,500 lbs. He tells you he has just landed a contract with the city plowing city streets. All he needs is a Certificate of Insurance. What does he need?
a. He can keep his personal auto policy and commercial plates
b. He needs a commercial policy.
53
Q & A5 And the answer is under MAIP/AIB rules
AnswerAnswer
5. And the answer is … under MAIP/AIB rules …a. He can keep his personal auto policy and commercial plate.
But what about the other company rules???• It does NOT fit the Bankers Standard definition.• It fits the GEICO definition.• It fits the IDS definition if payload is 2,000 lbs or less.• It does NOT fit the Occidental definition because Certificates of
Insurance are not permitted.• It does NOT fit the Progressive definition because it is equipped
with snowplowing equipment.
54
10/22/2012
28
Q & A6 Would your answer to the previous question be different if he6. Would your answer to the previous question be different if he
had a contract with the state that required him to provide a Certificate of Insurance and Additional Insured Endorsement naming the Commonwealth of Massachusetts? a. Yes, he’d be fine.b. No, there is no Additional Insured Endorsement for the
Personal Auto Policy, other than for a leasing company. He would need a commercial policy.
I i P i i hi iInteresting, Progressive permits a partnership or corporation to be named as an Additional Interest Insured … but still not eligible because of snowplowing equipment.
55
Q & A7 Your client accepts a position with the local Visiting7. Your client accepts a position with the local Visiting
Nurse Association as a home health aide. She will be helping clients with personal care, light housework, and will occasionally take the client to a doctor’s appointment or to the pharmacy to pick up a prescription using her own vehicle. In addition to her hourly wage, she is paid mileage reimbursement by her employer for the occasional transportation of clients. She has a personal p pauto policy and a private passenger plate. Will that work?a. Yes, she can keep her personal policy and plate.b. She has to have both a commercial policy and a livery
plate because of the livery exposure.
56
10/22/2012
29
57
Q & A
QuestionQuestion
7. What about the other companies? It fits the Bankers Standard definition.It fits the GEICO definition.Would IDS consider this wholesale or retail delivery?It fits the Occidental definition.It does not fit the Progressive definition because ofIt does not fit the Progressive definition because of carrying person or property for a fee or compensation – Progressive rule does not contain the “expense reimbursement” language contained in most company manuals.
If h dditi l ti dIf you have additional questions or need more information, you may email me at dmckenna@ massagent.com or reach me by phone at 800-972-9312 or 508-634-2900.
58
Priv
ate
Pass
enge
r Pla
te D
efin
ition
Priv
ate
Pass
enge
r Ins
uran
ce D
efin
ition
30
Co
mm
erci
al
Pla
te D
efin
itio
n
C
omm
erci
al V
ehic
le, i
n co
nnec
tion
wit
h re
gist
rati
on r
equi
rem
ents
, is
any
mot
or v
ehic
le w
hich
is n
ot a
pri
vate
pas
seng
er m
otor
veh
icle
, ant
ique
m
otor
car
, mot
orcy
cle,
tra
iler,
sem
i-tra
iler,
aut
o ho
me,
hou
se t
raile
r,
taxi
cab,
am
bula
nce,
hea
rse,
live
ry v
ehic
le, b
us, s
choo
l bus
, or
scho
ol
pupi
l tra
nspo
rt v
ehic
le. T
he f
ollo
win
g ar
e ex
ampl
es o
f co
mm
erci
al
vehi
cles
req
uiri
ng c
omm
erci
al r
egis
trat
ion
plat
es:
(a)
Any
veh
icle
whi
ch h
as a
veh
icle
wei
ght,
or
curb
wei
ght,
of
mor
e th
an s
ix
thou
sand
pou
nds,
as
per
the
man
ufac
ture
r’s d
escr
ipti
on o
f sa
id v
ehic
le, u
nles
s su
ch v
ehic
le is
a s
port
uti
lity
vehi
cle
or p
asse
nger
van
, or
a pi
ckup
tru
ck o
r ca
rgo
van
mee
ting
the
def
init
ion
of p
riva
te p
asse
nger
veh
icle
; (b
) A
ny v
ehic
le w
hich
has
five
or
mor
e w
heel
s on
the
gro
und;
(c
) A
ny p
icku
p tr
uck
or c
argo
van
, ow
ned
by a
par
tner
ship
, tru
st o
r co
rpor
atio
n un
less
suc
h ve
hicl
e m
eets
the
def
init
ion
of p
riva
te p
asse
nger
mot
or v
ehic
le;
(d)
Any
pic
kup
truc
k or
car
go v
an, i
f on
the
bed
of t
he v
ehic
le t
ools
, sup
plie
s,
mat
eria
ls o
r eq
uipm
ent
are
tran
spor
ted
to o
r fr
om a
job
site
, or
are
stor
ed f
or u
se
at a
job
site
; pro
vide
d th
at t
rans
port
atio
n to
or
stor
age
for
use
at a
per
sona
l
proj
ect
for
whi
ch n
o co
mpe
nsat
ion
is r
ecei
ved
shal
l not
be
cons
ider
ed in
co
nnec
tion
wit
h th
e “j
ob s
ite”
; (e
) A
ny v
ehic
le, i
f on
the
roof
or
side
s of
the
veh
icle
, too
ls, s
uppl
ies,
mat
eria
ls o
r eq
uipm
ent
are
tran
spor
ted
to o
r fr
om a
job
site
, or
are
stor
ed fo
r us
e at
a jo
b si
te;
prov
ided
tha
t tr
ansp
orta
tion
to
or s
tora
ge fo
r us
e at
a p
erso
nal p
roje
ct fo
r w
hich
no
com
pens
atio
n is
rec
eive
d sh
all n
ot b
e de
emed
in c
onne
ctio
n w
ith
a “j
ob s
ite”
; (f
) A
veh
icle
whi
ch h
as b
usin
ess
adve
rtis
emen
ts o
r bu
sine
ss m
arki
ngs
ther
eon;
pr
ovid
ed h
owev
er t
hat
mar
king
s lim
ited
to
the
nam
e, a
ddre
ss, t
elep
hone
nu
mbe
r, a
nd lo
go o
f any
cor
pora
tion
who
se p
erso
nal p
rope
rty
is e
xem
pt f
rom
ta
xati
on u
nder
G.L
. Cha
pter
59,
§5,
Cla
use
Thir
d or
Ten
th s
hall
not
be
cons
ider
ed b
usin
ess
adve
rtis
emen
ts o
r bu
sine
ss m
arki
ngs
for
purp
oses
of
540
CM
R 2
.05;
(g
) A
veh
icle
use
d fo
r hi
re t
o pl
ow;
(h)
A v
ehic
le u
sed
for
hire
to
tran
spor
t or
sto
re g
oods
, war
es o
r m
erch
andi
se,
prov
ided
tha
t if
the
vehi
cle
is o
wne
d by
an
indi
vidu
al, h
as a
max
imum
load
ca
rryi
ng c
apac
ity
of 1
,000
pou
nds
or le
ss, a
nd is
so
used
on
only
a p
art-
tim
e
basi
s, s
uch
vehi
cle
shal
l not
be
deem
ed a
com
mer
cial
veh
icle
und
er 5
40 C
MR
2.
05(3
)-co
mm
erci
al v
ehic
le (
h). “
Part
-tim
e ba
sis”
sha
ll m
ean
that
not
mor
e th
an
40%
of
the
tota
l usa
ge o
f the
veh
icle
is d
evot
ed t
o th
e tr
ansp
orti
ng o
r st
orin
g of
go
ods,
war
es o
r m
erch
andi
se.
(i)
A v
ehic
le u
sed
to t
rans
port
or
stor
e go
ods,
war
es o
r m
erch
andi
se in
tend
ed
for
sale
in t
he o
rdin
ary
cour
se o
f the
veh
icle
ope
rato
r’s o
r ow
ner’s
bus
ines
s,
prov
ided
tha
t if
the
vehi
cle
is o
wne
d by
an
indi
vidu
al, h
as a
max
imum
load
ca
rryi
ng c
apac
ity
of 1
,000
pou
nds
or le
ss, a
nd is
so
used
on
only
a p
art-
tim
e
basi
s, s
uch
vehi
cle
shal
l not
be
deem
ed a
com
mer
cial
veh
icle
und
er 5
40 C
MR
2.
05(3
)-co
mm
erci
al v
ehic
le (
i). “
Part
-tim
e ba
sis”
sha
ll m
ean
that
not
mor
e th
an
fort
y pe
rcen
t of
the
tot
al u
sage
of
the
vehi
cle
is d
evot
ed t
o th
e tr
ansp
orti
ng o
r st
orin
g of
goo
ds, w
ares
or
mer
chan
dise
So
urce
540
CM
R 2
.05
Co
mm
erci
al
Po
licy
Eli
gib
ilit
y Th
is s
ecti
on a
pplie
s to
all
truc
ks, i
nclu
ding
pic
kup,
pan
el a
nd v
an t
ypes
, tr
uck-
trac
tors
, tra
ilers
and
sem
itra
ilers
exc
ept
for
the
follo
win
g:
A.
Aut
os u
sed
for
publ
ic t
rans
port
atio
n. R
efer
to
the
publ
ic
tr
ansp
orta
tion
sec
tion
. B
. A
utos
leas
ed o
r re
nted
to
othe
rs b
y le
asin
g or
ren
tal
conc
erns
. Ref
er
to
the
leas
ing
or r
enta
l con
cern
s ru
le in
th
e Sp
ecia
l Typ
es S
ecti
on.
C.
Indi
vidu
ally
ow
ned
pick
ups,
pan
el t
ruck
s or
van
s.
R
efer
to
the
Priv
ate
Pass
enge
r A
utom
obile
Ins
uran
ce M
anua
l. D
. Se
lf-p
rope
lled
vehi
cles
wit
h th
e fo
llow
ing
type
s of
perm
anen
tly
atta
ched
equ
ipm
ent.
Ref
er t
o th
e sp
ecia
l or
mob
ile e
quip
men
t ru
le.
1.
Eq
uipm
ent
desi
gned
pri
mar
ily fo
r:
a.
Snow
rem
oval
b.
R
oad
mai
nten
ance
, but
not
con
stru
ctio
n or
res
urfa
cing
;
c.
St
reet
cle
anin
g;
2.
C
herr
y pi
cker
s an
d si
mila
r de
vice
s m
ount
ed o
n au
tom
obile
or
truc
k ch
assi
s an
d us
ed t
o ra
ise
of lo
wer
wor
kers
.
3.
Air
com
pres
sors
, pum
ps a
nd g
ener
ator
s, in
clud
ing
spra
ying
,
wel
ding
, bui
ldin
g cl
eani
ng, g
eoph
ysic
al
expl
orat
ion,
ligh
ting
and
wel
l ser
vici
ng e
quip
men
t.
Sour
ce:
M
assa
chus
etts
Com
mer
cial
Aut
omob
ile
Insu
ranc
e M
anua
l
31
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