Progressive 2As - again

    Posted by MAIA on Sep 4, 2019 12:01:00 AM

    QUESTION

    This question was answered based upon current rules, regulations & statutes in effect on July 25, 2019

    I am at a loss as to who can help me with this issue.  We have this particular customer and now another one who has called to cancel their commercial auto.  They are telling us Progressive does not do 2A’s and that they told her to cancel the auto by calling the agent.  This is not right.  I tried to explain this to the customer and she called Progressive back and they told her they will fax us proof of insurance and we should be able to cancel based  upon that.  This again does not see correct to me.  All agents in MA have to do the standard 2A are they exempt?  This puts us in a bad spot with the client and the possibility of ever getting them back again because they believe Progressive.  I am frustrated.  Can you help or send me to the person who can help?

    ANSWER

    Irene Morrill:  They have “exempted themselves” with MA DOI auspice of the 2A but they MUST provide notice to the RMV and to the agent losing the business. I’m sending this to Kathy Cormier, CPPL, Member Relations Advocate as she has been addressing this issue and knows what must be on the notice.

    Kathy, is it correct?

    Kathy Cormier:   What you received is a verification of insurance.  Because they stamped it, this is what you would use in lieu of a 2A.  I’ve attached the bulletin from 2008 that is still in force for your review...the notice requirements are on page two...if it is on company letterhead it just needs a stamp (no signature).  Then another bulletin was issued regarding the timing of when these notices should be sent...both are still in force.

    I hope this helps.

     This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Massachusetts Association of Insurance Agents, Number One Insurance Agency nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

    Topics: Personal, 2019

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