Application Requirements
Any certified producer can submit an application to the California Automobile Assigned Risk Plan or CAARP. The applicant shall provide underwriting and other information required on the application. In order for the application to be processed the producer must submit a completed application along with a copy of the vehicle registration and copies of the drivers' licenses for the named insured and any principle operators.
- Last name, first name and middle name or initial of the applicant
- Resident address and telephone number
- Mailing address if different from resident address
- Occupation and length of time at current employer
- Employer name, address, and telephone number
- Vehicle year, make, model, and vehicle registration
- State where vehicle is registered and registered owner's name
- If uninsured motorist property damage is requested, provide information on any existing damage to the vehicle
- Usage of the vehicle (pleasure, work, business or farm) and the number of miles driven to work or school (one -way)
- Garaging address if vehicle not garaged at resident's address
- Rating band and rate class for as many vehicles as listed
- Premium amounts for coverages (listed individually)
- Total policy premium amount, plus gross deposit amount submitted
- Selection of payment from one of the three payment options
- Drivers licenses for the insured and all drivers in the household.
- Indicate years licensed of all drivers in the household and if licensed less than three years, indicated date licensed
- Indicate individuals in the household who do not drive or are not licensed due to license suspension or revocation
- Indicate relationship to applicant, percentage of use of vehicles, birth date, and gender of all licensed drivers in the household
- Martial status, including name of spouse or registered domestic partner if not listed as an additional driver
- Indicate whether applicant is required to file evidence of financial responsibility with the Department of Motor Vehicles and, if so, indicate all information needed to make filing (the name of the individual requiring the filing, the type of filing, the reason for the filing, and the state where the filing is required)
- Name of the last automobile insurer, policy number, termination date and reason for termination, if available
- Provide details about all motor vehicles convictions and accidents in the preceding three years involving the applicant and anyone who operates the applicant's vehicle(s)
- If the application is for a non-owner policy, provide all information, including rating band and rate class
In order to get the requested effective date, the application must be signed, with date and time indicated by the applicant and the producer. If the applicant does not sign the application, it will be returned VOID from inception.
All applications submitted to the California Automobile Assigned Risk Plan must have:
- A copy of the driver's license for the owner of the vehicle as well as a copy of the driver's license for all principle drivers
- A copy of the vehicle registration
- Other acceptable documents in lieu of a current vehicle registration are:
- Expired Registration- (not more than 1 year old)
- DMV Renewal Requests (not more than 1 year old)
- DMV Suspense Customer Copies (not more than 1 year old)
- DMV Report of Deposit of Fees (not more than 1 year old)
- DMV Special Moving Permit (not more than 1 year old)
- Out of State registrations (not expired more than 1 year)
- Temporary Identification/Registration for Newly Purchased Vehicles (not more than 3 months old)
- Vehicle Certificate of Title (in the name of the insured)
- DMV Transfer of Title/Release of Liability form (must be signed and dated by both parties, not more than 3 months old)
- Sales Contracts/Bill of Sale from car dealerships (not more than 3 months old)
- Notarized Bill of Sale between two parties (not more than 3 months old)
The assigned company will require a copy of the current vehicle registration within 30 days of receipt of the application in their office.
A Named Non-Owner policy can be written for an individual who does not own a vehicle but wants to be insured in the event that he/she may drive an uninsured vehicle. A non-owner policy may also be applicable for individuals who are excluded from a policy for a vehicle in their household. Often an individual would want a named non-owner policy because they are required to show financial responsibility to reinstate their driver's license.
The named non-owner policy is rated by taking a percentage of the Class 3-Private Passenger rate in the territory in which the applicant resides. Read the chart from the left to the right, moving to the boxes to the right to determine classification.
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N1
N2
N3
N4
N5
N6
N7
N8
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85%
75%
45%
30%
100%
200%
100%
170%
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N1-FR
N2-FR
N3-FR
N4-FR
N5-FR
N6-FR
N7-FR
N8-FR
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120%
105%
120%
85%
225%
225%
125%
240%
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Example:
If Class 3 rate is $100 X N1 (85%) = $85.00 |
Classifications N1-FR through N8-FR applies to risks required to file evidence of financial responsibility. This classifications shall also apply to an individual:
- Not required to file evidence of financial responsibility who is afforded coverage for the operation of an auto furnished for his/her regular use
- Who is afforded coverage for the operation on an auto owned by a member of the household provided there is no liability insurance afforded to such individual on a direct primary basis
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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.
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