Commercial Auto and SDIP

    Posted by MAIA on Mar 20, 2020 12:00:00 AM

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

    We have a client that has both a personal auto policy and a business auto policy with us. The insured backed into a snow bank and caused damage to the truck that is on the commercial policy. They are trying to weigh which would be a better choice…to just pay for the damage themselves, vs. incurring any surcharges. I had explained that surcharges don’t get applied to commercial policies, but that I think the surcharges would follow the license and get applied to the personal policy most likely. Other account managers here don’t think either policy will get the surcharge. Do you have an answer on that?



    Irene Morrill:  An accident occurring in a vehicle insured under a BAP is not subject to surcharges.  A BAP depending on number of vehicles and premium size can be subject to experience rating.

    However, If the same company insures both then they will “know” the driver had an accident and personal auto policy premium will change on renewal due to “tier rating’

    Or, if the personal auto carrier ever asks for renewal application and asked about “accidents” that the person would have to “fess up” …but it still is NOT an SDIP thing …it will only change the tier or way the personal lines carrier looks at the client.

    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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