This question was answered based upon current rules, regulations & statutes in effect on July 25, 2020
We stamped a commercial RTA for one of our clients and submitted a change request to the carrier adding the vehicle to the policy. It has been 5 days and the carrier just notified us that they will not add the vehicle to the policy and there is no coverage. The carrier stated that just because we stamp an RTA does not mean that they need to cover the vehicle. Is that true? I can understand issuing legal notice to get off the vehicle but not to add it at all. Who would be responsible if there was an accident?
Thanks for you input.
Irene Morrill: Really. On a policy that is already in existence. Did the insured buy a vehicle that has a different activity or something like a Tesla that is overpriced? Do they have an excluded or ineligible vehicle list and that vehicle was on it ?
I would “suggest” to the carrier that you are an agent and have stamped the registration and it has gone through the RMV so therefore it IS insured and they need to issue a cancellation for the policy. If this is the first 90 days of policy they can cancel for any reason. If its been longer than 90 days they can only cancel for:
See the cancellation provision from MM 99 11 MA amendatory endorsement:
You can cancel all or any part of the insurance at any time by giving us or your agent at least 20 days written notice.
We can cancel all or any part of the insurance if:
1. You have not paid your premium on this policy.
2. We find that you were responsible for fraud or material misrepresentation when you applied for this policy or any extension or renewal of it.
3. Your driver's license or auto registration has been u nder suspendion or revocation during the policy period.
Otherwise they can set the policy up for non-renewal.
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