211 CMR, § 134.10 - Computation of Safe Driver Insurance Plan Surcharges and Credits

(1)211 CMR 134.10(2) through 211 CMR 134.10(8) shall be required only for Policies issued during a Fixed-and-established Market.

(2) Information Used for Computation. For Policies Subject to the Safe Driver Insurance Plan. In response to a request from an Insurer for SDIP Information for a Policy subject to 211 CMR 134.00, the Insurer shall use the total number of Surcharge Points or Credit Code for each Listed Operator as reported by the Merit Rating Board to calculate the applicable operator surcharge factor or operator credit factor in accordance with 211 CMR 134.10(3). The Insurer shall use the resulting factor to adjust the Policyholder's premium accordingly.

(3) Operator Surcharge Factor or Operator Credit Factor. For Policies subject to the Safe Driver Insurance Plan, each Listed Operator shall be assigned an operator surcharge factor or an operator credit factor based on the operator's driving history record. The surcharge factor is equal to one plus the product of the total number of SDIP Surcharge Points, calculated pursuant to 211 CMR 134.10(4)(a), and the Surcharge Percentage. The credit factor is equal to one minus either the Excellent Driver Discount or the Excellent Driver Discount Plus, as applicable.

(4) Calculation of Total Operator SDIP Points.

(a) For Policies Subject to the Safe Driver Insurance Plan.

1. When the Incident-free Period is less than or equal to three, the total number of Surcharge Points applicable to the operator shall be the sum of the Surcharge Points identified for each Surchargeable Incident in the Policy Experience Period.

2. When the Incident-free Period is greater than three, and the total number of Surchargeable Incidents in the most recent five years of the Policy Experience Period is three or less, the Surcharge Points applicable to each incident shall be reduced by one and the total number of Surcharge Points applicable to the operator shall be the sum of those reduced Surcharge Points. In no event shall the Surcharge Points for any single incident be reduced below zero.

(b) For all Policies Subject to the Safe Driver Insurance Plan. Only Surchargeable Incidents that are within the Policy Experience Period shall be used in calculating Surcharge Points, however, Surcharge Points for Surchargeable Incidents in the sixth year of the Policy Experience Period shall be set at zero. The Merit Rating Board shall use the Surcharge Date of a Surchargeable Incident to determine which Surchargeable Incidents are within the Policy Experience Period. The Surcharge Points assigned for each major accident, each minor accident, each minor traffic law violation and each major traffic law violation, as designated by the Commissioner and posted on the Division's website at www.mass.gov/doi, are set forth in 211 CMR 134.13.

(5) Credit for Incident-free Years.

(a) For Policies Subject to the Safe Driver Insurance Plan.

1. When the Incident-free Period is at least five, but less than six years, a unique Credit Code shall be assigned to the operator.

2. When the Incident-free Period is at least six years, a unique Credit Code shall be assigned to the operator.

3. For operators with at least five full years of driving experience, when the Incident-free Period is greater than three, and the only Surchargeable Incident within the Policy Experience Period is a minor traffic law violation, the disposition of which was non-criminal under M.G.L. c. 90C, the Credit Code assigned to the operator shall be the same as that assigned to operators in 211 CMR 134.10(5)(a)1.

(6) Operator SDIP Ranges. For Policies Subject to the Safe Driver Insurance Plan, the total number of SDIP points range from 0 to 45. The maximum number of SDIP points is 45.

(7) Policy Experience Period. For Policies Subject to the Safe Driver Insurance Plan, a Surchargeable Incident in the sixth year of the Policy Experience Period (as determined by the Surcharge Date) will not be assigned Surcharge Points. A Surchargeable Incident in the sixth year will prevent an operator from earning an Incident-free Year.

(8) Incarcerated Operators. Notwithstanding any other provision of 211 CMR 134.00, where sufficient information is available, operator credits and surcharges shall be determined in accordance with the provisions of St. 1997, c. 43, § 130.

Notes

211 CMR, § 134.10

Amended by Mass Register Issue 1355, eff. 12/29/2017.