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CAARP Introduction, Part I: What is CAARP?
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Company Performance Standards

Per Sections 37 and 54 of the CAARP Plan of Operations, insurance companies and servicing carriers must comply with specific requirements when underwriting and servicing CAARP Private Passenger, CAARP Commercial, and LCA Program applications.

Failure to comply will result in violations being charged against the companies.
  • The company must mail the original policy within 30 calendar days of receipt of the assigned application.
  • The full producer commission must be issued within 30 days from receipt of assignment.
  • The insurance company must notify the insured and the producer within 15 days of receipt if the application is missing necessary underwriting information.
  • The insured has 15 calendar days to respond to company.
  • Endorsements are to be mailed within 30 days from receipt of request.
  • Companies must provide the basis for each surcharge.
  • Must notify the insured and the producer of the reason for the premium adjustment.

If a producer discovers that a company or servicing carrier is not complying with CAARP's company performance standards, they should complete a company performance complaint form and send one copy to the company and one copy to CAARP's office. The company has 20 days to respond to CAARP regarding the complaint. Based on the company's response, CAARP will determine if the complaint is valid or invalid, and send final determination to all parties.
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© 2008, LunchTimeCE, Inc and AIPSO. All Rights Reserved.
Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation.
The authors, LunchTimeCE, Inc. and AIPSO, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.