Code of Massachusetts Regulations
211 CMR - DIVISION OF INSURANCE
Title 211 CMR 134.00 - Safe Driver Insurance and Merit Rating Plans
Section 134.02 - Definitions
As used in 211 CMR 134.00, the following words shall mean:
At-fault Accident. An accident involving a vehicle subject to 211 CMR 134.00 wherein the Involved Operator was more than 50% at fault, as determined by the application of the Standards of Fault of the Board of Appeal, and that:
(a) For accidents occurring before July 1, 2015, results in a claim payment made by an Insurer, exclusive of any deductible, exceeding $500.
(b) For accidents occurring on or after July 1, 2015, results in a claim payment made by an Insurer, exclusive of any deductible, exceeding $1,000.
Board of Appeal. The Board of Appeal on Motor Vehicle Liability Policies and Bonds established pursuant to M.G.L. c. 26, § 8A.
Bodily Injury Liability Coverage. The insurance coverage designated as such in a Massachusetts Private Passenger Motor Vehicle insurance Policy.
Collision Coverage. The insurance coverage designated as such in a Massachusetts Private Passenger Motor Vehicle insurance Policy.
Commissioner. The Commissioner of Insurance appointed pursuant to M.G.L. c. 26, § 6, or his or her designee.
Competitive Market. A market in which Private Passenger Motor Vehicle insurance rates are not fixed and established pursuant to M.G.L. c. 175, § 113B.
Comprehensive Coverage. The insurance coverage designated as such in a Massachusetts Private Passenger Motor Vehicle insurance Policy.
Coverage Selections Page. The coverage selections page of a Massachusetts Private Passenger Motor Vehicle insurance Policy, or a replacement Coverage Selections Page.
Credit Code. The code representing the number of consecutive Incident-free Years within the Incident-free Period applicable to any operator as approved by the Commissioner in the Statistical Plan.
Credit Points. Except as otherwise provided by 211 CMR 134.00, one Credit Point is earned by an operator with a valid driver's license for each Incident-free Year within the Policy Experience Period.
Designated Statistical Agent. The rating organization or other agency designated by the Commissioner as the statistical agent for the Division of Insurance pursuant to M.G.L. c. 175A, § 15(a).
Division. The Division of Insurance established pursuant to M.G.L. c. 26, § 1.
Excellent Driver Discount. The percentage value assigned by the Commissioner at the time Private Passenger Motor Vehicle insurance rates are fixed-and-established pursuant to M.G.L. c. 175, § 113B reflecting the lower expected loss experience of operators with Incident-free Periods of more than five and less than six years, which may vary according to the affected liability coverages and Collision Coverage, irrespective of the class and territory of the Policy.
Excellent Driver Discount Plus. The percentage value assigned by the Commissioner at the time Private Passenger Motor Vehicle insurance rates are fixed-and-established pursuant to M.G.L. c. 175, § 113B reflecting the lower expected loss experience of operators with Incident-free Periods of at least six years, which may vary according to the affected liability coverages and Collision Coverage, irrespective of the class and territory of the Policy.
Fixed-and-established Market. A market in which premiums for Private Passenger Motor Vehicle insurance are based on rates fixed-and-established by the Commissioner pursuant to M.G.L. c. 175, § 113B, following a hearing and decision pursuant to M.G.L. c. 175E, § 5 finding that competition in the Private Passenger Motor Vehicle insurance market is, with respect to any territory or to any kind, subdivision or class of insurance, either insufficient to assure that rates would not be excessive, or so conducted as to be destructive of competition or detrimental to the solvency of Insurers.
Incident-free Period. The number of consecutive Incident-free Years immediately preceding the Policy Effective Date and within the Policy Experience Period of the Policy for which an operator with a valid driver's license had no Surchargeable Incidents.
Incident-free Year. Any of the series of one-year periods immediately preceding the Policy Effective Date and within the Policy Experience Period of the Policy for which the licensed operator had no Surchargeable Incidents.
Insurer. Any corporation, association, partnership, group or individual engaged as a principal authorized to write Private Passenger Motor Vehicle insurance in the Commonwealth.
Involved Operator. Any person determined to have been operating a motor vehicle subject to 211 CMR 134.00 at the time of, and involved in, an accident subject to 211 CMR 134.00, or any person having a traffic law violation subject to 211 CMR 134.00, as specified by 211 CMR 134.03.
Limited Collision Coverage. The insurance coverage designated as such in a Massachusetts Private Passenger Motor Vehicle insurance Policy.
Listed Operator. The Policyholder and any person listed on the new or renewal application for the Policy covering one or more vehicles subject to 211 CMR 134.00.
Merit Rating Board (MRB). The Motor Vehicle Insurance Merit Rating Board established pursuant to M.G.L. c. 6A, § 57A.
Merit Rating Information. Motor vehicle insurance claim and traffic law violation information provided to an Insurer by the Merit Rating Board that will be used by Insurers in the application of the Insurer's Merit Rating Plan that Insurers may submit pursuant to M.G.L. c. 175E during Competitive Markets.
Merit Rating Plan. A rating procedure used for calculating Private Passenger Motor Vehicle insurance premiums by Insurers in a Competitive Market that utilizes past motor vehicle insurance claim and traffic law violation experience of the operators insured under a Policy to forecast future losses by measuring their loss experience against the loss experience of operators in the same classification to produce a prospective premium.
MRB Manual(s). The Manual(s) prepared by the Merit Rating Board in accordance with 211 CMR 134.15.
Notice of At-fault Accident Determination. The notice of an At-fault Accident provided by the Insurer to the Merit Rating Board, the Involved Operator and/or the Policyholder during a Competitive Market.
Operator Information. The driver's license number, license state, name and date of birth as they appear on the driver's license of the Policyholder and of all Listed Operators on a Massachusetts Private Passenger Motor Vehicle insurance Policy.
Personal Injury Protection Coverage. The insurance coverage designated as such in a Massachusetts Private Passenger Motor Vehicle insurance Policy.
Policy. For the policy year and each year thereafter, any motor vehicle liability Policy as defined in M.G.L. c. 90, § 34A applicable to Private Passenger Motor Vehicles; including any Massachusetts motor vehicle insurance Policy written in accordance with a Private Passenger Motor Vehicle insurance manual.
Policy Effective Date. The date on which the Massachusetts Private Passenger Motor Vehicle insurance Policy takes effect.
Policy Experience Period. The six year period immediately preceding the effective date of the Policy.
Policy Number. A unique number, up to 16 characters long, that does not change throughout the life of the Policy.
Policyholder. The principal named insured(s) on a Policy.
Private Passenger Motor Vehicle. Any vehicle, except motorized vehicles not normally driven on public ways, that is subject to rating in accordance with a Private Passenger Motor Vehicle insurance manual, regardless of whether a Competitive Market or a Fixed-and-established Market is in place.
Property Damage Liability Coverage. The insurance coverage designated as such in a Massachusetts Private Passenger Motor Vehicle insurance Policy, also known as "Damage to Someone Else's Property."
Safe Driver Insurance Plan or SDIP. The adjustment of insurance rates and premiums during Fixed-and-established Markets for Private Passenger Motor Vehicles subject to 211 CMR 134.00 on the basis of motor vehicle insurance claims arising from At-fault Accidents, traffic law violations and Comprehensive Coverage claims.
Safe Driver Insurance Plan (SDIP) Statement. For Policies subject to the Safe Driver Insurance Plan during Fixed-and-established Markets, the notification from an Insurer to a Policyholder with one or more vehicles not assigned the Excellent Driver Discount Plus (best credit) for Property Damage Liability Coverage, mandatory Bodily Injury Liability Coverage, Personal Injury Protection Coverage, or Collision Coverage.
SDIP Information. Information provided to an Insurer by the Merit Rating Board which is the basis upon which Private Passenger Motor Vehicle insurance premium adjustments that are required to be made under the Safe Driver Insurance Plan during Fixed-and-established Markets including, but not necessarily limited to, Surchargeable Incidents (and the Surcharge Points applicable thereto), number of Incident-free Years or Credit Points and driver's license status.
Statistical Plan. The Massachusetts automobile statistical plan promulgated by the Commissioner pursuant to the authority granted under M.G.L. c. 175A, § 15(a).
Surchargeable Incident. An At-fault Accident, traffic law violation, or Comprehensive Coverage claim, which may result in an increase in the Policyholder's premium during Fixed-and-established Markets.
Surcharge Date. The date of notice entered by an Insurer on the Surcharge Notice required by 211 CMR 134.04, the date of payment on the Comprehensive Coverage claim notice required by 211 CMR 134.05, the disposition date entered by a court on the citation for a traffic law violation, or the date the payment of the fine assessed for civil motor vehicle infractions is received by the Registry of Motor Vehicles.
Surcharge Notice. The notice of an At-fault Accident provided by the Insurer to the Merit Rating Board, the Involved Operator and/or the Policyholder during a Fixed-and-established Market.
Surcharge Percentage. The percentage value assigned by the Commissioner when Private Passenger Motor Vehicle insurance rates are fixed and established pursuant to M.G.L. c. 175, § 113B to be applied to the total number of Surcharge Points for each Surchargeable Incident during the Policy Experience Period, which may vary according to the affected liability coverages and Collision Coverage, irrespective of the class and territory of the Policy.
Surcharge Points. The point values assigned by the Commissioner for each Surchargeable Incident set forth in 211 CMR 134.13.
All other items in 211 CMR 134.00 shall be construed as defined in M.G.L. c. 90, §§ 34A and 34O, M.G.L. c. 175 and M.G.L. c. 175A, or, if not defined in these chapters, in accordance with common usage.
