Current through Register 1531, September 27, 2024
(1)
An Insurer may waive an inspection of a Private Passenger Motor Vehicle under
any of the following circumstances:
(a) for
Motor Vehicle Liability Policies issued or renewed with Physical Damage
Coverage during the current calendar year, when the difference between the
current calendar year and the model year designated by the manufacturer of the
motor vehicle is ten years or more. For example, if the calendar year is 2002,
the Insurer may waive the inspection for all 1992 and older model year motor
vehicles. An Insurer may elect to inspect specified motor vehicles included
within this optional waiver. Such exceptions to this optional waiver shall be
subject to underwriting criteria uniformly applied, and shall be reasonable and
supported by objective facts. The decision to require such an inspection shall
not be based on the age, race, sex, marital status, creed, national origin,
religion, occupation, income, education, credit information or home ownership
of the Applicant or the customary operators of the motor vehicle, the principal
place where the motor vehicle is garaged, or the fact that the Motor Vehicle
Liability Policy has been issued through the residual market;
(b) where a Nonowned Motor Vehicle is insured
under a Motor Vehicle Liability Policy providing Physical Damage Coverage
issued by an Insurer which has inspected such motor vehicle in accordance with
the provisions of
211 CMR 94.00;
(c) where the Private Passenger Motor Vehicle
is insured under a commercially-rated Motor Vehicle Liability Policy;
(d) when an insurance producer is
transferring a Book of Business from one Insurer to one or more
Insurers;
(e) when an insurance
producer is transferring an individual Applicant's coverage from one Insurer to
another Insurer. The new Insurer may require the insurance producer to provide
the inspection information completed on behalf of the former Insurer, provided
the Private Passenger Motor Vehicle previously was inspected by the former
Insurer. If the new Insurer does not receive the inspection information 60 days
prior to the first policy renewal date of the Physical Damage Coverages, the
new Insurer may require an inspection as set forth in
211 CMR 94.00 prior to the
first policy renewal;
(f) when the
Private Passenger Motor Vehicle is insured for Physical Damage Coverage on the
Applicant's expiring or cancelled Motor Vehicle Liability Policy, providing
there is no lapse in coverage, or when the prior pre-insurance inspection
information is provided; or
(g)
when the Applicant has been the customer of the insurance producer of record or
the Insurer for at least three years under a Motor Vehicle Liability Policy
which included Physical Damage Coverage.
(2) An Insurer also may waive an inspection
if it files a plan for waiving pre-insurance inspections on Private Passenger
Motor Vehicles, subject to the approval of the Commissioner. Such pre-insurance
inspection plans shall comply with the following requirements:
(a) the Insurer's plan shall comply with the
provisions in
211 CMR
94.05 and
211 CMR
94.08(4);
(b) the Insurer's plan shall require the
following documentation be included in the Insurer's policy records for the
Applicant:
1. The reason for requiring a
pre-insurance inspection;
2. The
reason for any exceptions to any other provisions of the Insurer's plan;
and
3. The notification(s) made to
the Applicant in connection with any required pre-insurance
inspections.
(c) the
decision criteria for waiving the pre-insurance inspections required by
211 CMR 94.00 set forth in
the Insurer's plan shall not consider the Applicant's membership in any group
subject to a group marketing plan approved by the Commissioner pursuant to
M.G.L. c. 175, § 193R;
(d) the
decision criteria for waiving the pre-insurance inspections required by
211 CMR 94.00 set forth in
the Insurer's plan shall not be based on the loss ratio for an insurance
producer, where such loss ratio is calculated using premium and loss experience
incurred prior to December 31, 2008 for personally-rated Motor Vehicle
Liability Policies;
(e) any
provisions of the Insurer's plan that permit the Insurer to elect to inspect a
Private Passenger Motor Vehicle for which inspection customarily is waived
under such plan shall be based on underwriting criteria uniformly applied, and
the decision to inspect such motor vehicle shall be reasonable and supported by
objective facts. The decision to require such an inspection shall not be based
on the age, race, sex, marital status, creed, national origin, religion,
occupation, income, education, credit information or homeownership of the
Applicant or the customary operators of the motor vehicle, the principal place
where the motor vehicle is garaged, or the fact that the Motor Vehicle
Liability Policy has been issued through the residual market; and
(f) any provisions of the Insurer's plan that
set forth a period of time for the completion of a pre-insurance inspection
following the effective date of a Motor Vehicle Liability Policy shall be based
on underwriting criteria uniformly applied, and shall be reasonable and
supported by objective facts. The period of time for obtaining the
pre-insurance inspection shall not be based on the age, race, sex, marital
status, creed, national origin, religion, occupation, income, education, credit
information or homeownership of the Applicant or the customary operators of the
motor vehicle, the principal place of where the motor vehicle is garaged, or
the fact that the Motor Vehicle Liability Policy has been issued through the
residual market.
(3) An
Insurer's decision to waive or not to waive a pre-insurance inspection of a
Private Passenger Motor Vehicle pursuant to 211 CMR 94.06(1) or (2) shall be
based on underwriting criteria uniformly applied and shall be reasonable and
supported by objective facts. The decision to require a pre-insurance
inspection shall not be based on the age, race, sex, marital status, creed,
national origin, religion, occupation, income, education, credit information or
homeownership of the Applicant or the customary operators of the motor vehicle,
the principal place where the motor vehicle is garaged, or the fact that the
Motor Vehicle Liability Policy has been issued through the residual
market.
(4) When an Insurer does
not waive the pre-insurance inspection requirement, the Insurer shall indicate
the underlying reason in the Applicant's policy record.