9is question was answered based upon current rules, regulations & statutes in effect on March 6, 2020
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.
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 Cormier: The stamp is stating that there is Liability on the vehicle and that allows the RMV to process the transaction.
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