Frequently Asked Questions

Q: How long has the AIB been serving the automobile insurance industry?

A: Since 1925

Q: Now that we no longer have a “fix and establish” system of rate setting for private passenger autombolie insurance, what is AIB’s role in “Managed Competition"?

A: AIB makes advisory rates for “under 1% market share companies”, as well as rates for the residual market on behalf of CAR/MAIP. AIB also files advisory rules and policy forms that any member company can adopt, in whole or in part. In addition, portions of AIB’s advisory filings may be referenced by members in making their own filings (eg, profit model, increased limit factors, territories, etc.)

Q: What is the AIB's role in commercial automobile insurance?

A: Similarly, AIB files rates for “under 1% market share insurers”, along with rules, and experience rating plan, and forms that can be adopted by any member insurer.

Q: Can AIB assist its members with specialized actuarial services to help make member’s filings?

A: Yes, on a fee-for service basis, AIB can offer tailored services, both actuarial and legal, to assist members in dealing with the filing requirements of the Massachusetts automobile insurance marketplace.

Q: What is the Detail Claim Database (DCD)?

A: The DCD is a claim reporting system, instrumental in fighting fraud and handling claims, that captures specific detailed information on all auto injury claims in Massachusetts. Compliance with reporting to this database is required by a commissioner’s order. AIB developed and manages this proprietary database, and makes the industry wide information and claim details available to its members.

Q: Who has to report claims data to the DCD?

A: All licensed carriers are required to report all closed injury claims to the AIB to populate the DCD.

Q: What other functions does AIB offer to its members?

A: Through its claims panel, AIB offers a central source to deal with industry claims issues which arise through legislation, regulation, or litigation.

Q: How does AIB work with the Mass Legislature?

A: AIB is frequently called upon to respond to requests for information on various bills being considered, including requests to analyze the pricing impact of potential legislation, and to offer expert testimony when necessary.

Q: Does the AIB work with the insurance industry’s lobbyists?

A: While AIB does not lobby on behalf of its members, AIB is frequently called upon by industry lobbyists to offer support, either via pricing analysis or testimony, on various issues that come up before legislative bodies and regulatory agencies.

Q: What is the Assigned Claims Plan?

A: Pursuant to statute, the assigned claims plan offers PIP coverage to individuals who may have been in an accident, but don’t have access to an auto policy. These may include non-auto owning pedestrians, or even guest occupants in an uninsured vehicle. AIB is designated by the commissioner to be the plan administrator for this statutorily required program, and manages the process through selected servicing carriers who have volunteered to handle these claims.