Michigan Automobile Insurance Placement Facility
Fall 2010 Newsletter
MAIL: P.O. Box 33617, Detroit, MI 48232-5617 (Apps & General Correspondence) Phone: 734-464-1100
17456 Laurel Park Drive North, Suite 130E, Livonia, MI 48152-3981 (Drop off Apps) 8:00 a.m. to 4:20 p.m.
www.maipf.org Email: firstname.lastname@example.org Fax: 734-464-0009
AIPSO’s Website 4 EARS – News/Updates 2 PP Form Changes 3
Appendix 1 4 Expansion of PP Rating Symbols 5 PP Quick Quote 2
Application Trends 1 FAQ’S 3 Rate Changes 4
Base Rate Revisions 4 HEAT Program 6 Servicing Carrier Directory 7
CARS 5 MAIPF Employment Retirement 1 We Want to Hear From You 6
Changes to the Motor Vehicle Code 6 MAIPF Manual Revisions 4
Commercial Special Types 4 Manager’s Message 1
Terri A. Miller, CPCU – MAIPF General Manager
Our partners in the insurance industry and law enforcement have been sharing their
experiences with the theft of component parts from automobiles. As entire vehicles are
getting harder to steal due to built-in theft prevention devices, thieves have had to turn to
When prices of precious metals are high, thefts of catalytic converters increase as well. They are sold to
scrappers for about $50, where metals like platinum and rhodium can be extracted. We’re also seeing a
large number of thefts of GPS units, both factory-installed and portable.
We would like to remind you that if your client selects Comprehensive coverage on the MAIPF private
passenger auto policy, there is coverage for electronic equipment (such as a GPS unit) only if the unit was
installed by the original manufacturer. There is no coverage for any after-market piece of electronic
equipment on an MAIPF policy. We recommend that all of your clients:
• Always lock their vehicles, even when exiting for a few moments;
• Remove portable GPS units, including their brackets, whenever leaving the vehicle; and
• Never leave any items of value visible, such as a laptop, cell phone or MP3 player.
Please contact me (email@example.com) if you have any questions or suggestions about Facility operations.
MAIPF EMPLOYEE RETIREMENT
It is with mixed emotions that we announce the retirement of our longtime employee, Cynthia Pirie, who will
be leaving us at the end of 2010 after over 37 years of service. Cindy began her career at the MAIPF as a
clerk-typist and quickly worked her way up the ranks to Systems Manager, working with four different
General Managers. Showing a deep interest in technology, she brought us into the computer age by
steering many of the technological advances over the years. Working at all hours of the day and night, Cindy
has been responsible for many of the behind-the-scenes IT duties that keep our office systems up and
running. Plans are in place to attempt to fill her shoes but her footprint will stay for a long time to come.
Please join us in extending our best wishes and heartfelt thanks for her stern dedication, work ethic and
loyalty as she enters the next phase of her life.
Through September 2010 we have received 1,360 private passenger applications – down 21.5% from the
same period in 2009. We received 311 commercial applications, a reduction of 13.9% from 2009.
EARS – NEWS AND UPDATES
Our private passenger Electronic Application and Rating System (EARS) is the preferred choice for most of
the producers who do business with us. We continue to upgrade the system and will keep you informed
whenever we make a change. You may notice a few changes to the penalty point section, which we revised
to comply with the 10/31/2010 statutory changes in the Motor Vehicle Code (see related article). We’ve also
made a few cosmetic changes on the EARS home page which include instructions for how to get a pricing
indication for those risks that EARS does not support.
In addition to the updates, we also would like to take this opportunity to share with you some suggestions
when visiting the EARS site.
• Don’t ignore the four startup questions upon entering EARS; they could actually save you time. For
example, if the risk that you are rating is for liability only, click in the appropriate start up radio box and
EARS will reroute you only through the questions needed for your risk.
• Once you reach the EARS Summary Sheet which breaks down the risk characteristics and the price for
each coverage, you can always make adjustments to your rate by clicking on the links from the
Summary Sheet. The links return you to the desired area to make your changes.
• The vehicle inspection portion is built in as a function of EARS, so don’t forget to answer the questions
in the appropriate section whenever your applicant is requesting comprehensive and/or collision
• Don’t save the EARS home page in your Internet “Favorites”. While you may be allowed to enter the
site with your login, you may find that you are met with an error message when you attempt to open the
PDF of the application. Instead, when accessing EARS, open the Internet and physically type in
www.maipf.org in the browser and then click on the appropriate login link.
• There are several features located under the System Tools of the EARS homepage which eliminate the
task of reentering applicant information for your returning customers. These functions include:
o Save - You can save an application and return at a later date. When you restore a “saved”
application, you will be required to adjust the date accordingly.
o Archive – You can retrieve an application that was submitted previously. Once again, you will be
prompted to adjust the date, but the remainder of the application information remains intact. If
adjustments are needed in the applicant’s profile, simply revise where needed.
o Reprint – This can help you retrieve the exact application that was submitted to us by entering the
applicant’s last name, confirmation number, and the date range that the application was submitted.
PRIVATE PASSENGER QUICK QUOTE
We have enhanced the Private Passenger Quick Quote to include those risks and coverages not supported
by EARS. The drop-down menu now includes the following:
Antique Autos and Historical Autos
Classic, Restored or Custom Built Autos
Motor Homes, Customized Vans and Pickup Trucks with Caps or Camper Bodies
Trailers, Physical Damage Coverage Only
?? FREQUENTLY ASKED QUESTIONS ??
Q - I had someone in my office and sent an email to firstname.lastname@example.org but did not receive an immediate
reply. Why didn’t I receive a response until later?
A - Our info email box is viewed several times during our normal working hours, Monday through Friday,
from 8 AM until 4:20 PM. A phone call to the office is the best way to help a customer who might be in your
office in need of an immediate answer. Anyone answering the phone can assist you.
Q - Why was my commercial policy issued with Hired & Non Owned Coverage when I didn’t request
A - Effective 05/01/10, whenever a state or federal regulated filing, an MDOT filing, or an MCS 90
endorsement is needed on a commercial risk, hired auto and nonowned auto liability coverages will be
added to the policy in order to comply with the requirements of those filings. Our Commercial Application
and Rating System (CARS), has been revised to include the rating for hired and non owned coverage on the
appropriate worksheets inside of CARS.
Q - I am selling/transferring my book of business, what do I need to do?
A - Please complete the form on our website http://www.maipf.org/Authorized/Sell_TranferBusiness.pdf and
notify all servicing carriers. You can find their addresses at http://www.maipf.org/SC/SC-Directory.pdf.
PRIVATE PASSENGER FORM CHANGES
After a comprehensive review of private passenger auto coverage forms, OFIR disapproved language used
by many insurers, including MAIPF. As a result, we modified our form to address OFIR’s concerns and took
the opportunity to combine the basic policy form and the amendatory endorsement into one.
A summary of the changes follows; please refer to the policy form for specific details.
• Coverage definitions were clarified for a spouse who is no longer part of the household; coverage will
cease when the spouse has obtained other coverage, or at the end of the policy period, whichever
• Coverage is affirmed for volunteer or charitable purposes under the exclusion for public or livery
• The process by which an insured may file suit against an insurer is clarified.
• Cancellation procedures were clarified; an insured will not have to return a policy or submit a written
request to an insurer to cancel a policy. MAIPF servicing carriers will still require a written request
from your office to initiate cancellation. We recommend that you keep detailed phone logs of all
requests and that you consider written confirmations to your clients.
• Policy language was clarified to affirm that return premiums (if any) after policy cancellation are
calculated on a pro-rata basis.
• A new exclusion was added for vehicles being operated in a prearranged race or speed contest; this
exclusion does not apply to coverage up to the minimum limits required by financial responsibility
The new policy form, MAIPF 00 11 07 10, will be added to new and renewal policies with effective dates on
or after October 31, 2010. It replaces both MAIPF 00 11 04 97 and MAIPF 00 31 02 03. However, at the
direction of OFIR, claims occurring on or after September 24, 2010 will be adjusted using the revised policy
language (with the exception of the racing exclusion, which is effective on October 31).
AIPSO’S WEBSITE –MAIPF ELECTRONIC MANUALS
http://www.aipso.com (LOGIN REQUIRED)
If you have visited AIPSO’s website since August 2, 2010, you have noticed their redesign and login
requirement. For those of you who have not—and were registered—you will be required to re-register to
access the MAIPF electronic manual. If you have any questions regarding their redesigned website, please
e-mail them to https://www.aipso.com/ContactAIPSO.aspx.
RATE CHANGES – EFFECTIVE 10.31.2010
Private Passenger and Commercial Auto base rates will change effective October 31, 2010. Private
Passenger rates are, by law, determined by a weighted average of the base rates of the top five insurers in
the state. Commercial rates are based upon the loss experience of our book of business.
Base Rate Revisions for 10.31.2010 (New Business & Renewal Policies)
PRIVATE PASSENGER COMMERCIAL
% Change % Change
Trucks, Tractors, & Trailers/Related 7.7%
Bodily Injury 24.3% Public Automobiles (w/o Taxicabs) -1.2%
Property Damage +27.4% Taxicabs +7.2%
Personal Injury Protection +32.8% PP Types and Related Lines -5.3%
Property Protection Ins. +26.3% Zone Rated Risks -5.9%
Mandatory Coverages +31.2% Employers’ Non-Ownership Liability -13.5%
Optional Coverages +10.6% Comprehensive and Collision +1.9%
Overall Total +25.1% Overall Total -3.2%
MAIPF MANUAL REVISIONS
Effective Chapter Revision
Rule 24 - New surcharges for moving violations causing
MI 2010 Revision 003
Private death or serious impairment of a body function.
Passenger Private Passenger Base Rates
10.31.2010 Revised Personal Auto Policy MI 2010 Revision 005
Commercial Base Rates
Special Types and Operations Chapter - Rewrite MI 2010 Revision 006
Appendix 1 MACF Assessment MI 2010 Revision 004
Appendix 2 Private Passenger Surcharge Chart MI 2010 Revision 005
Revisions to APPENDIX 1
Effective date for New Business PP Chapter Commercial Chapter (annual)
& Renewal Policies (semi-annual) PPNF Commercial
10.31.2010 MACF $36.00 $200.00 $200.00
Total Additional Charges: $116.00 $360.00 $358.00
Dealer/Transit Plates: $14.00
MLPD $5.00 $10.00
10.31.2010 Taxicabs: $17.00
(per auto) (No Change) (No Change)
All Others: $14.00
COMMERCIAL SPECIAL TYPES & OPERATIONS--SIMPLIFIED
Revised Rule 132 is the premium development rule for all special types and operations. The remaining rules
in this chapter specify the uniqueness of each risk. To develop the premium, apply the factors to the
formulas found on pages C-50 and C-51, the new Special Types Premium Development Table. A worksheet
for Special Types & Operations is available in CARS for those who prefer not to manually rate.
COMMERCIAL APPLICATION & RATING SYSTEM (C.A.R.S.)
New features in CARS:
Now includes worksheets for all commercial risks.
We have reformatted the Hired & Nonowned Autos worksheet to allow you to rate more than one
nonowned operation. When there is more than one location, the information will be displayed on the
MAIPF-04, next to Sections 6 and 7.
The worksheets for trucks and public autos now include the rating for hired and nonowned auto
coverages (when applicable).
• For risks with multiple vehicles, locate the appropriate worksheet within CARS – remember that all
vehicles must have the same BI/PD limits. Complete and print the pricing indication for each
vehicle. Now you have two options:
o Complete the PDF version of the commercial application (MAIPF-04) that is located on the
same webpage as CARS; OR
o Continue through the CARS process to submit the application electronically. Submit a
schedule of vehicles for any unit that does not print with the electronic application.
• Mail the application, all worksheets, a 25% deposit based on the total premium for all vehicles, and
any additional required documentation to the MAIPF.
• The worksheets will allow you to rate for multiple vehicles in early 2011.
SAVE, SUBMIT or RETRACT?
you need a pricing indication for a risk but may revisit the quote at a later date. Once you save your quote,
your work can always be retrieved through the system tools under “My Saved Quotes”.
you plan to forward the paper application to the Facility. Click the submit button once to avoid duplicate
submissions. Please be patient while the completed commercial application loads after clicking the
View/Print MAIPF-04 button. If you need to revise the MAIPF-04 after printing, just make your corrections
directly on the paper application and initial your changes. If the form doesn’t load, make sure that you are
allowing “pop-ups” (look toward the top of your screen).
you clicked SUBMIT and do not intend to follow through with the signed application. Since the SUBMIT
function sends us the application information electronically, we are expecting to receive the paper application
in the mail so please call us at 734.464.1100 or send us an e-mail at email@example.com if the coverage and/or
application was not secured. If you issued a temporary certificate of insurance (MAIPF-01), follow the
EXPANSION OF PRIVATE PASSENGER PHYSICAL DAMAGE RATING SYMBOLS/
VEHICLE SERIES RATING PROGRAM REVISIONS, MARCH 2, 2010
Vehicles with model years 2011 and subsequent will now have separate symbols for comprehensive and
collision coverages. Both EARS and our Quick Quotes have been revised accordingly.
CHANGES TO THE MOTOR VEHICLE CODE
Effective 10/31/2010, Section 257.601d of the Michigan Vehicle Code was revised to include the following six
point penalties for moving violations.
A moving violation that causes serious impairment of a body function of another person
A moving violation that causes the death of another person
Reckless driving that causes serious impairment of a body function of another person
Reckless driving that causes the death of another person
Also effective 10/31/2010, the following penalties are no longer applicable unless the conviction date was
HEAT® PROGRAM - 25 YEARS OF FIGHTING AUTO THEFT CRIMES!
The HEAT® Program is celebrating its 25th anniversary this month. Our program has aided law enforcement
in the recovery of over $52 million in stolen vehicles and related property, and has paid rewards to tipsters
totaling nearly $3.6 million. Michigan Supreme Court Justice Robert Young gave the keynote address at the
Anniversary Breakfast, and retiring Michigan State Police Lieutenant William Darnell was awarded the
William Liddane Award for his dedication and service to HEAT during his tenure with the Western Wayne
Auto Theft Unit.
HEAT® is a confidential, toll-free tip line to allow citizens to report information about auto theft, auto theft-
related insurance fraud or identity theft, carjackings, theft rings and chop shops. If the suspects are arrested
and bound over for trial, rewards can range up to $10,000! All funding for the program is provided by
Michigan auto insurers. Live operators are ready to take calls 24/7.
To date in 2010, we have already awarded over $70,000 to tipsters who provided information leading to the
recovery of nearly $1 million in stolen vehicles and other property.
To obtain free materials for display in your agency or to include in mailings to your clients, contact Nina Hier
at ext. 227 or via email at firstname.lastname@example.org. Program information and theft prevention tips are also available
on our web site, www.miheat.org.
Help Eliminate Auto Thefts by reporting Auto Theft & Auto Related Crimes
Call the 24/7 HEAT® Confidential Tip Line Contact us for HEAT® Info and to
1-800-242-HEAT OR Report Tips Online! Order Supplies
WE WANT TO HEAR FROM YOU
Your feedback is especially important to us and we want to hear from you. Please share with us your
experience, good or bad with any Facility related item; from our website, rating programs and employee
support. Send us your comments at email@example.com.
SERVICING CARRIER DIRECTORY
CARRIER ADDRESS PHONE NUMBER
PO Box 40049
Allstate (866) 245-9172
Roanoke VA 24022-9825
Auto Club 1 Auto Club Drive (313) 336-2530
Dearborn MI 48126-2694
6101 Anacapri Blvd. (517) 323-8740 or
PO Box 30660 (517) 323-8741
Lansing MI 48909-8160
Auto Plan Department
Citizens PO Box 930 (800) 243-8921
Howell MI 48844-0930
State Farm 2550 Northwestern Ave. (765) 463-8140
West Lafayette IN 47906-1394
26777 Halsted Rd
Amerisure (Commercial) PO Box 9201 (800) 789-9594
Farmington Hills MI 48333-9201
For a complete listing of servicing carrier claim offices in Michigan, go to