THE RHODE ISLAND AUTOMOBILE INSURANCE PLAN
The Rhode Island Automobile Insurance Plan (the AIP, the Plan) was created to provide
automobile insurance coverage to eligible risks that seek coverage and are unable to
obtain such coverage through the voluntary market. Eligible Plan risks are shared among
companies writing automobile insurance in Rhode Island’s voluntary market. The Rhode
Island AIP became effective October 1, 1968.
The Rhode Island Service Center
The Rhode Island Service Center’s (RISC) role in the administration of the Rhode Island
Plan is unique. While most automobile insurance plans assign and distribute applications,
the RISC is a facility for centralized policyholder service on behalf of Plan subscribers.
Established in 1978, the Service Center issues and services all Rhode Island AIP
insurance policies on behalf of assigned companies. Its operations and processing
services include, but are not limited to
Underwriting (ordering MVRs, CLUE reports, rate pursuit)
Policy issuance and maintenance
Premium billing and collection
Policy renewals and cancellation notices
Producer commissions and 1099 tax forms
The RISC’s centralized underwriting processing allows local producers to interact with a
single entity instead of a number of insurance companies located throughout the country.
The Service Center also provides assigned companies with policy declaration pages,
monthly statistical reports and monthly accounting reports. This information is also
available in tape or electronic format. If your company would like a test tape or
transmission, please contact the Rhode Island AIP.
The Service Center also issues monthly net premium checks that can also be deposited
To make certain that these various reports and checks are sent to the proper
individuals, it is necessary that companies provide us with proper mailing
The only service function not performed by the Service Center is claims handling. The
Service Center must notify all Plan manual holders of the offices where Plan policyholders’
claims are processed. Companies are required to provide the Service Center with the
name, address and telephone number (either toll-free or collect) for the claims office that
will handle their Rhode Island AIP claims. The RISC also has a coverage confirmation unit
that verifies if coverage was in effect at the time of a loss. The coverage confirmation
unit’s telephone number is 401-946-0480.
When a policy is issued at the Service Center, a policy number is assigned. The policy
number generally begins with “R38” and is followed by six digits. Some policy numbers
begin with “MP” or “A55”. Once a Plan assignment is received, many companies change
the RISC’s policy number to one of its own. As the insured and producer are unaware of
the policy number change, problems arise when an attempt is made to file a claim. In
many instances, company claim personnel are unfamiliar with the Service Center
operation and policy numbers. As a result, coverage cannot be located using the policy
number provided by the insured or producer. For claims reporting purposes, the
assigned company must immediately notify the insured and producer if it changes
the policy number assigned by the Plan to one of its own.
Each time a claim file is opened, the assigned company must confirm coverage with the
Service Center. Subsequently, an Underwriting Information Report (UIR) will be sent to
the company’s claim department. This form must be completed and returned to the
Service Center once the claim is closed or if a payment is made, which results in the loss
being chargeable (above the threshold amount). This is the only way the Service Center
will know that a claim has been filed and determine whether a surcharge (additional
premium for the assigned company) should be applied to a policy.
In accordance with Section 19 of the Rhode Island AIP’s Plan of Operation, the assigned
company MUST also notify the producer of the settlement of a claim within 30 days of
closing. This can be done by using a copy of the UIR or the assigned company can
develop a form of its own.
The Rhode Island AIP has a mandatory take-out program described in Section 12 of its
Plan of Operation. Sixty days prior to renewal, the Service Center issues to a Plan
policyholder a Notice of Expiration on behalf of the assigned company. To be eligible for
All operators listed on the Plan policy must not have been involved in any accidents
or violations for which surcharges or points may be assigned for a period of three
years prior to the expiration of the Plan policy
All operators on the policy must have been licensed for a period of three
If physical damage coverage was afforded under the policy, there must not have
been an at-fault collision loss in the past three years, nor more than two
comprehensive losses in the past year
Once a Plan policyholder is deemed eligible to be taken out of the Plan, the assigned
company is obligated, if requested by the policyholder, to issue a voluntary policy at rates
less than that of the Plan.
The Rhode Island AIP also provides voluntary take-out and keep-out programs. The
voluntary take-out program provides a company with a “2 for 1” premium credit for
accepting into the voluntary market at expiration a Plan policyholder who is not otherwise
eligible for a mandatory take-out. The keep-out provision provides a company with a “2 for
1” premium credit for voluntarily writing new business that would develop at least three
chargeable points as defined in the Plan’s Manual of Rules and Rates, or for voluntarily
renewing business that has one chargeable or two non-chargeable losses, plus any other
accidents or violations that would develop two points. The “No Prior Insurance” keep-out
provision provides a company with a “3 for 1” premium credit for accepting into the
voluntary market a risk who did not previously carry automobile liability insurance for a
period of not less than 30 days prior to the date of application.
Additional details regarding the voluntary take-out and keep-out programs are found in
Sections 13 and 14 of the Rhode Island AIP’s Plan of Operation. Section 52 of the same
document outlines the reporting procedure for these credit programs.