Commonwealth Automobile Reinsurers (CAR) recently released Bulletin No. 1055 which provides additional information concerning the recent approval by the CAR Governing Committee to approve standards for validating the "nerve center" Principal Place of Business.
"At its June 20, 2018 meeting, the Governing Committee unanimously voted to approve standards for validating the “nerve center” Principal Place of Business of a commercial automobile residual market risk. The attached standards apply to all commercial automobile Servicing Carriers and Exclusive Representative Producers and require the validation of a risk’s principal place of business, securing a certification by the risk, and conducting audits pursuant to Rule 10 of CAR’s Rules of Operation. The standards identify items that are intended to be used as underwriting opportunities and to serve as evaluation tools to assist Servicing Carriers in ascertaining a risk’s eligibility in the commercial residual market and in validating the risk’s declared principal place of business."
CAR Bulletin No. 1055 provides the following information:
- Servicing Carrier Standards for Validating the “Nerve Center” Principal Place of Business
- Exclusive Representative Producer Standards for Determining the “Nerve Center” Principal Place of Business
- PRINCIPAL PLACE OF BUSINESS CERTIFICATION FORM (CR 00 01 08 18)
- Submission and use of the Certification Form will be required as of August 1, 2018.
Previous bulletins relative to these changes can be found in our article published on June 22, 2018: CAR News - Governing Committee Votes on Changes.