Introduction of the New NYAIP-Specific Private Passenger Auto by oox83341

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									NEW YORK
AUTOMOBILE
INSURANCE PLAN                           CIRCULAR                                          January 27, 2004
                             125 Maiden Lane • New York, New York 10038 • (212) 943-5100

Circular Number
CIR (NY) 04-06                   Introduction of the New
GCB (NY) 04-08              NYAIP-Specific Private Passenger
GEN (NY) 04-04
                  Auto Insurance Policy and Related Endorsement Forms

Effective Date    April 1, 2004

Distribution      To all Subscribers, Certified Producers and Manualholders

Contents          This circular is being released to announce the New York Automobile Insurance Plan
                  (NYAIP)-Specific Private Passenger Automobile Insurance Policy and related
                  endorsement forms approved by the State of New York Insurance Department. These
                  new forms will replace the current NYAIP Personal Automobile Policy and Endorsement
                  Portfolio for new or renewal policies effective on/or after April 1, 2004.

                  The New York Private Passenger Auto Insurance Policy and related endorsements are
                  tailored to the specific requirements of the NYAIP. However, the new policy and
                  endorsements provide coverage equivalent to the current NYAIP policy forms with some
                  deviations. Further information can be obtained in Circular: PFE (NY) 03-06 available
                  on the Plan website under “What’s new:” at www.aipso.com/ny

                  Additionally, attached is Important Notice IMN (NY) 03-17 that outlines the sections and
                  rules in the Plan Manual affected by the new policy forms.

                  Please bring this to the attention of all those who handle New York Automobile
                  Insurance Plan business.

Attachment        Important Notice IMN (NY) 03-17

                  ____________________________________
Contact           AIPSO Manual and Policy Forms Department
                  (401) 946-2310




                                               Managed by AIPSO
                               IMPORTANT NOTICE
                                                 IMN (NY) 03-17
TO ALL NEW YORK AUTOMOBILE INSURANCE PLAN MANUALHOLDERS:
This Notice is to advise you that the State of New York Insurance Department has approved
•   an amendment to Section 10 that references the New York Private Passenger Auto Insurance Policy;
•   amendments to Section 11 that require a Policy Change Request form before physical damage coverage
    applies to a newly acquired auto and incorporate three days of automatic physical damage coverage for
    replacement autos;
•   amendments to Section 17 that specify the use of the New York Private Passenger Auto Insurance Policy and
    related endorsements;
•   amendments to Rules 16, 21, 27, 28, and 124 that eliminate reference to “stated amount basis” as all physical
    damage coverage is provided on an “actual cash basis”;
•   the deletion of Rule 23. Amphibious Private Passenger automobiles as this Rule is obsolete;
•   amendments to Rule 27 that track the New York Private Passenger Auto Insurance Policy that only excludes
    customization not included in the vehicle’s original retail invoice;
•   amendments to Rule 28 that reference use of the Collision and Comprehensive Coverage—Maximum Limit of
    Liability endorsement;
•   amendments to Rules 75 and 76 that clarify that these coverages are written on a commercial policy;
These amendments are effective April 1, 2004.
Sec. 10.    EXTENT OF COVERAGE
The Note under paragraph C is amended to read as follows:
C. Mandatory Basic Personal Injury Protection Coverage
    Note:   The family deductible of $200 is available only for family entities eligible to have coverage provided
            under the New York Private Passenger Auto Insurance Policy for private passenger automobiles as
            defined in the Plan Manual or for individually owned vehicles with coverage provided under the
            Business Auto Policy, New York For-Hire Automobile Policy (except the all other class), or Garage
            Policy. Other than individually owned automobiles are not eligible for the $200 personal injury
            protection family deductible.


Sec. 11.    APPLICATION FOR ASSIGNMENT
The third paragraph of F.2(a) is amended to read as follows:
F. Issuance of Temporary Identification Cards for Liability Insurance—Procedure Applicable Only to
   Eligible Vehicles Written on a Specified Car Basis
    2. Additional Vehicles
        (a) Contact Insurer(s) Directly
            Under this procedure, if physical damage coverage is desired on the additional vehicle, and provided
            such additional vehicle qualifies for physical damage coverage in accordance with Section 1(d),
            Purposes of the Plan, the producer shall request that physical damage coverage be afforded on the
            additional vehicle by submitting such request in writing, using the Policy Change Request form, to the
            insurer accompanied by a check or money order, payable or endorsed to the insurer, for an amount
            equal to the pro rata physical damage premium for the remainder of the policy period or 30% of the
            annual premium, whichever is less. The coverage(s) requested shall become effective either in
            accordance with the provisions of the policy, or 12:01 A.M. on the day of receipt of the request in the
            office of the insurer, or if the request was submitted by certified mail, as of 12:01 A.M. on the day
            following the postmark date on the transmittal envelope, as affixed by the United States Postal
            Service. If the request is submitted by certified mail, the post office receipt number must be affixed to
            both the outside of the transmittal envelope and to the written request contained therein. No more
            than one request shall be submitted in the same envelope. In the event the written request is

IMN (NY) 03-17 Eff. 4/1/2004                             1
            delivered to the insurer by next day overnight delivery service sent prior to the date of receipt, the
            coverage(s) requested shall become effective as of 12:01 A.M. on the day of receipt of the written
            request by the insurer. However, in instances where the written request is hand delivered, delivered
            by messenger, or delivered by same day delivery service, coverage shall be made effective 12:01
            A.M. on the day following receipt of the written request by the insurer.


The third paragraph of F.2(b) is amended to read as follows:
        (b) Producer Issuance of Temporary Identification Card for Private Passenger Vehicles Only
            Coverage shall be effective in accordance with the provisions of the policy, or 12:01 A.M. on the day
            of receipt of the request in the office of the insurer, or if the request was submitted by certified mail,
            12:01 A.M. on the day following the postmark date of the transmittal envelope as affixed by the United
            States Postal Service, whichever is earlier. Barcoded temporary identification cards produced by any
            means other than PASS or the Plan Identification Card Facility (not limited to the ID cards generated
            by the ICCS), are excluded from the immediate coverage provisions of Section 12.C, and are subject
            to the effective date provisions of Sections 12.A and 12.B.
The second paragraph of F.2(c) is amended to read as follows:
        (c) Producer Issuance of Temporary Identification Card for Other than Private Passenger Vehicles
            When a barcoded temporary identification card is issued by the producer of record for an additional
            vehicle in accordance with the above procedures, and physical damage is desired on the additional
            vehicle, providing the vehicle is eligible for such coverage, the deposit premium check shall include
            the required deposit for the physical damage coverage(s) desired. A copy of the barcoded temporary
            identification card shall accompany the Policy Change Request form. Coverage shall be effective in
            accordance with the provisions of the policy, or 12:01 A.M. on the day of receipt of the request in the
            office of the insurer, or if the request was submitted by certified mail, 12:01 A.M. on the day following
            the postmark date of the transmittal envelope as affixed by the United States Postal Service,
            whichever is earlier. Barcoded temporary identification cards produced by any means other than
            PASS or the Plan Identification Card Facility (not limited to the ID cards generated by the ICCS), are
            excluded from the immediate coverage provisions of Section 12.C, and are subject to the effective
            date provisions of Sections 12.A. and 12.B.


Paragraph F.3 is amended to read as follows:
    3. Replacement Vehicles
        Definition: A vehicle which is not registered in the insured’s name in the state of New York replacing a
        vehicle registered in the name of the insured on which there is automobile liability insurance in force
        through this Plan.
        The producer may use an electronically produced barcoded temporary identification card printed to
        indicate that it is to be used for replacement vehicles, such form to be completed in the name of the
        assigned insurer and issued as described in Section 11.F.2.(b)(1)-(3) above.
        Coverage shall be effective in accordance with the provisions of the policy. Barcoded temporary
        identification cards produced by any means other than PASS or the Plan Identification Card Facility (not
        limited to the ID cards generated by the ICCS), are excluded from the immediate coverage provisions of
        Section 12.C, and are subject to the effective date provisions of Sections 12.A and 12.B.
        If a policy for only comprehensive coverage is in effect through the Plan at the time the identification card
        is issued for a replacement vehicle, the producer may request that collision coverage be added for said
        vehicle by submitting such request in writing on the Policy Change Request form to the insurer
        accompanied by a check or money order payable or endorsed to the insurer for an amount equal to the
        pro rata collision premium for the remainder of the policy period or 30% of the annual premium, whichever
        is less. The collision coverage requested shall become effective at 12:01 A.M. on the day of receipt of the
        request in the office of the insurer, or if the request was submitted by certified mail, 12:01 A.M. on the day
        following the postmark date of the transmittal envelope as affixed by the United States Postal Service. If
        the request is submitted by certified mail, the post office receipt number must be affixed to both the
        outside of the transmittal envelope and to the written request contained therein. No more than one
        request shall be submitted in the same envelope. In the event the written request is delivered to the
        insurer by next day overnight delivery service sent prior to the date of receipt, the collision coverage
        requested shall become effective as of 12:01 A.M. on the day of receipt of the written request by the
        insurer. However, in instances where the written request is hand delivered, delivered by messenger, or
        delivered by same day delivery service, coverage shall be made effective 12:01 A.M. on the day following
        receipt of the written request by the insurer.


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       For private passenger vehicles, an insurer will provide the same physical damage coverage, which
       covered the replacement vehicle prior to receiving a request for coverage. This automatic coverage prior
       to the submission of the request in writing on the Policy Change Request form shall be for a period of
       three days, including the day on which the vehicle is acquired. The three-day period shall be extended by
       one day for each Saturday, Sunday or any New York State legal holiday falling within the period. The
       automatic coverage shall only apply to vehicles replacing covered vehicles, which were insured by the
       insurer for physical damage coverage for at least the 12-month period preceding the replacement date.
       If no physical damage coverage is in effect at the time an identification card is issued for a replacement
       vehicle and either comprehensive coverage or comprehensive coverage and collision coverage is
       desired, and provided such replacement vehicle qualifies for physical damage coverage in accordance
       with Section 1(d), Purposes of the Plan, the producer shall submit such request in writing on the Policy
       Change Request form directly to the assigned liability insurer accompanied by a check or money order
       payable or endorsed to such insurer, for an amount equal to the pro rata physical damage premium for
       the remainder of the policy period or 30% of the annual premium, whichever is less. A copy of the
       barcoded temporary identification card shall accompany the Policy Change Request form. The physical
       damage coverage shall become effective at 12:01 A.M. on the day of receipt of the request in the office of
       the insurer, or if the request was submitted by certified mail, 12:01 A.M. on the day following the postmark
       date of the transmittal envelope as affixed by the United States Postal Service, whichever is earlier. If the
       request is submitted by certified mail, the post office receipt number must be affixed to both the outside of
       the transmittal envelope and to the written request contained therein. No more than one request shall be
       submitted in the same envelope. In the event the written request is delivered to the insurer by next day
       overnight delivery service sent prior to the date of receipt, the physical damage coverage requested shall
       become effective as of 12:01 A.M. on the day of receipt of the written request by the insurer. However, in
       instances where the written request is hand delivered, delivered by messenger, or delivered by same day
       delivery service, coverage shall be made effective 12:01 A.M. on the day following receipt of the written
       request by the insurer.


Sec. 17.    STANDARD POLICY COVERAGE
Paragraph A is amended to read as follows:

A. New York Private Passenger Auto Insurance Policy

   1. The following risks shall be provided uniform coverage equivalent to the New York Private Passenger
      Auto Insurance Policy and endorsements that have been approved by the State of New York Insurance
      Department for use with New York Automobile Insurance Plan business.

       a. Private passenger automobiles, as defined in Rule 15 of the Automobile Insurance Plan Manual, that
          have four wheels and are owned or hired under a long-term contract by an individual or by husband
          and wife who are residents in the same household or jointly by relatives other than husband and wife,
          or jointly by resident individuals.

       b. Snowmobiles, motorcycles, or motor homes used for pleasure or driven to and from work that are
          owned or hired under a long-term contract by an individual or husband and wife who are residents in
          the same household, and written on a specified car basis.

       c.   Named nonowner risks

   2. Coverage for private passenger automobiles owned or hired under a long-term contract by relatives other
      than husband and wife, or resident individuals shall be amended by an approved Joint Ownership
      Endorsement.

   3. Coverage for motorcycles, motor homes, or snowmobiles shall be amended by the approved Motorcycle,
      Motor Home, or Snowmobile Endorsement, respectively.

   4. Coverage for named nonowner risks shall be amended by an approved Named Nonowner Coverage
      Endorsement.

New paragraph B is added, reading as follows: (Current paragraphs B, C, D, and E are redesignated as C, D, E,
and F).

B. Commercial Auto Coverage Part Program

   All other risks, except for-hire vehicles, excess liability policies, or all-terrain vehicle policies, assigned under
   the Plan shall be provided uniform coverage equivalent to the Commercial Auto Coverage Part Program and
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   endorsements that have been approved by the State of New York Insurance Department for use with New
   York Automobile Insurance Plan business.


Rule 16.    PREMIUM DETERMINATION
Paragraph B.5 is amended to read as follows:
B. The comprehensive rate is determined as follows:
   5. For comprehensive coverage on recreational trailers, refer to Rule 21.



Rule 21.    TRAILERS—DESIGNED FOR USE WITH A PRIVATE PASSENGER AUTOMOBILE

The Physical Damage Coverage section of this Rule is amended to read as follows:

                                    PHYSICAL DAMAGE COVERAGES ONLY

Recreational trailers only, as defined in paragraph 1 above, may be afforded physical damage coverage and shall
be insured as a separate item of insurance and with separate premium indicated. All physical damage coverages
are to be subject to a deductible in accordance with Section 10 of the Plan. Such coverage if desired shall be
written on an Actual Cash Value basis. Refer to Rule 13A to determine the appropriate rate if the deductible
requested is other than the $250 deductible rate shown in the paragraphs below.

                                                       RATES

a. Comprehensive Rate with $250 Deductible Provision per $100 of Actual Cash Value:
   Without Collision Coverage       $ .91
   With Collision Coverage            .78
b. Collision Premiums
                                            (The rate table is unchanged.)
Note:   If the Actual Cash Value of the trailer is in excess of $50,000, refer to Plan for rates.


Rule 23. Amphibious Private Passenger Automobiles is deleted in its entirety.


Rule 27.    CUSTOMIZED VEHICLES
This Rule is amended to read as follows:
A. Exclusion
   With respect to policies providing physical damage coverage for vans or pickups rated as private passenger
   automobiles, coverages shall be excluded for customized equipment including but not limited to the following:
   1. Special carpeting and insulation, furniture, bars or television receivers
   2. Facilities for cooking and sleeping, including enclosures
   3. Height-extending roofs
   4. Custom murals, paintings, or other decals or graphics
   The exclusion does not apply to equipment and graphics that are included in the original retail invoice for the
   automobile.
B. Buyback
   Coverage for the customized equipment excluded may be purchased for any van or pickup that is insured for
   physical damage coverage. Such physical damage coverage shall be written with the same deductible
   applicable to the customized equipment as is applicable to the automobile.



IMN (NY) 03-17 Eff. 4/1/2004                               4
    Rate as follows:
    1. Refer to rate schedules, use the territory and any physical damage deductible applicable to the vehicle.
    2. Multiply the Symbol 2 rate for the current model year by the following percentages to obtain the rate per
       $100 Actual Cash Value of customizing:
        Comprehensive       1.7%
        Collision           1.0%
    3. Multiply the rate for customizing by the Actual Cash Value to obtain the customizing premium.
    The premium shall not be subject to modification under the provisions of any rating plan or other Manual rule.
    The applicable endorsement must be attached to the policy.


Rule 28.    CLASSIC OR RESTORED AUTOMOBILE
Paragraph B is amended to read as follows:
B. The policy shall be written on an Actual Cash Value basis, which shall be the Actual Cash Value of the vehicle
   at the time of the issuance of the policy. The value placed on the automobile is to be verified by the
   submission of an up-to-date appraisal and two photographs, one from the front and one from the rear that
   includes the license plate. Further, the insured, at the company’s request, must make the vehicle available for
   verification of the appraisal. (Attach the Collision and Comprehensive Coverage—Maximum Limit of Liability
   endorsement.)


Rule 75.    DRIVE OTHER CAR COVERAGE
Paragraph A is amended to read as follows:
A. A Commercial Auto Coverage Part may be extended to provide drive other car coverage to
                                   (The remainder of paragraph A is unchanged.)



Rule 76.    INDIVIDUAL AS THE NAMED INSURED

This Rule is amended to read as follows:
A Commercial Auto Coverage Part covering an individually owned automobile may be endorsed to provide
A. drive other car coverage at no additional charge if the policy covers
    1. a private passenger automobile not used for public transportation or rented to others without a driver;
                                    (The remainder of this Rule is unchanged.)



Rule 124.   RECREATIONAL TRAILERS USED WITH LIGHT COMMERCIAL VEHICLES (PHYSICAL
            DAMAGE)

This Rule is amended to read as follows:
Physical damage coverage may be provided recreational trailers while being towed by a light commercial vehicle
in accordance with the following provisions:
Definition—A recreational trailer is a movable structure equipped as mobile living quarters (with or without
           bathroom facilities) identified by the manufacturer as a travel or camper trailer, constructed on a
           chassis with a wheeled running gear not self-propelled, designed for use with a private passenger
           automobile or pickup truck and towed by a light commercial vehicle provided
            a. it is used for purposes of travel, recreation, and vacation; and
            b. the owner maintains a separate and permanent residence other than the recreational trailer.


IMN (NY) 03-17 Eff. 4/1/2004                             5
Recreational trailers may be afforded comprehensive and collision coverage and shall be insured as a separate
item of insurance with separate premium indicated. All physical damage coverages are to be written subject to a
deductible in accordance with Section 10 of the Plan. Such coverage shall be written on an Actual Cash Value
basis. Refer to Rule 13A to determine the appropriate rate if the deductible requested is other than the $250
deductible rate shown in the paragraphs below.
RATES
a. The comprehensive rate with a $250 deductible provision, per $100 of coverage is $3.80.
b. Collision Premiums
                                           (The rate table is unchanged.)
Note:   If the Actual Cash Value of the trailer is in excess of $50,000, refer to Plan for rates.



Pending receipt of the revised pages, please insert this Notice for use in your present Manual.
            (You should also have IMNs 03-10, 03-11, 03-12, 03-13, 03-14, 03-15, and 03-16 for use
                            with the August 15, 2003 Distribution of Manual pages.)
Contact: NYAIP Customer Service Department, (212) 943-5100
AIPSO Filing No. NY 03-04
12/30/03




                                                 Electronic Manuals

     The New York Automobile Insurance Plan Manual is available in electronic format at
     www.aipso.com/ny. A listing of the other residual market manuals available in electronic format can be
     found at www.aipso.com/manuals. You may view and search the current and archived electronic,
     interactive versions of the NY AIP Manual or you may download the paper version of the Manual in
     Adobe Acrobat PDF file format.



                                                     Distributed by
                                                         AIPSO
                                                  302 Central Avenue
                                              Johnston, Rhode Island 02919
                                                    www.aipso.com



IMN (NY) 03-17 Eff. 4/1/2004                               6

								
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