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    Stamped RTA and Coverage

    Posted by MAIA on Mar 19, 2020 12:00:00 AM

    9is question was answered based upon current rules, regulations & statutes in effect on March 6, 2020
     
    QUESTION

    I hope you have been well.  Question for you – if we stamp an RTA, is coverage for that vehicle considered bound?  Ie. If we forget to send a change request to the company, is coverage bound by virtue of the stamp?

    Thank you for your time and consideration.

     


    ANSWER

    Irene Morrill: If the insured already has a MAP or BAP then both those policies state once an insured takes title(MAP) or acquires (BAP) there is coverage. The BAP is specific a replacement vehicle gets the coverage of the vehicle it replaces for up to 30 days. The MAP states a replacement vehicle could be covered for a maximum of 30 days from the date the insured lost possession of vehicle currently on dec page. If it’s an additional auto the maximum says of coverage is 7. Unfortunately the MAp doesn’t state what coverages. Historically a replacement vehicle gets the coverage of the vehicle it replaces and one can argue “whatever” insured wants for additional. There is mandatory offer of collision and comprehensive unless insured is extra risk. 

    In your case you talked to client and know what they want. If you “discover” your mistake within policy language time then you would argue your bound company  

    If you discover your mistake after policy language time you beg mercy. Quite often an agency contract will state the required time to send to company. Ultimately the company would have to respond but would it become an EO claim against agency is the issue

    Sending this to Kathy Cormier CPPL member relations advocate and RMV and auto expert 

    Kathy?

    Kathy Cormier:  The stamp is stating that there is Liability on the vehicle and that allows the RMV to process the transaction.

    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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