Trailer Only Policies

    Posted by MAIA on Mar 24, 2020 12:00:00 AM

    9is question was answered based upon current rules, regulations & statutes in effect on March 5, 2020
     
    QUESTION

    We are being told by our carrier that their new company portal will no longer support “trailer only” policies, so they are going to be non renewing the policies unless we add a vehicle to the policy.  We have a few instances where the owner of the trailer doesn’t HAVE their own MAP or BAP  – maybe they have custody of a work vehicle or they bought the trailer and the family shares  it once in a while with their brother’s truck.  How is something like this handled?  If we wrote the insurance with MAIP, would they have to take it because it is subject to MA Reg and therefore insurance is REQUIRED? 

    Any help you can send my way is appreciated!

     


    ANSWER

    Irene Morrill:   Honestly, there has never been a requirement that they allow you to stamp “trailer only” policies …

    Sorry neither MAIP nor CAR requires a company to provide liability insurance for trailers without a “motorized vehicle” on the policy .  I am happy that they are legally non-renewing something that they didn’t have to do in the first place.

    Kathy Cormier:  We are also seeing companies do this because trailers no longer required an insurance stamp on renewal. 

    In the past we would see a trailer initially with company A and now the client is with company B, but the RMV still shows company A.  The carriers are now adding and then removing the trailers so that they are no longer listed and the client would need to get an insurance stamp from the new company to keep the plate active.

    Agent:  I’m confused as far as the MA License plate goes, though…. Don’t we have to stamp the RTA with the company that insures them in order to GET a plate?  Are they no longer requiring insurance to be carried on those plates?  What does one do in the case where there is not a PPT auto policy with the same owner? 

    Irene Morrill:  They are legally non-renewing …and that is their prerogative – to get off it legally – 45 days notice.

    The insured needs to sell/give trailer to a business or person that has a policy that is willing to accept the risk – or buy a vehicle.

    There is “guaranteed availability” for a trailer only when there is a motorized counterpart on the policy

    Kathy Cormier:   Yes, for a new trailer registration you must have an insurance certification stamp.  However, if you are renewing the trailer, the RMV no longer requires a stamp...this is why companies are getting off trailers if they no longer have an auto.  If the trailer goes into revocation, the customer would need to get a stamp form the new carrier to keep the plate in force.  Liability Insurance is automatic on a MAP for the vehicle pulling the trailer.

    Agent: Understood.  Thank you very much for your help, Irene and Kathy!

    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: Registry, 2020

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