The Commonwealth Automobile Reinsurers have implemented a 4.3% rate increase for residual market commercial automobile business in Massachusetts effective September 1.

The commission rate paid to agents for business ceded to CAR is changed to 9.91% from 10.23%.

In addition to changing base rates, CAR has revised its rules to include the following:

• Elimination of the Property Damage Liability Deductible.
• Elimination of the Passive Restraint Discount.
• Expansion of eligibility for the application of an anti-theft device credit on light trucks up to 10,000 pounds. Previously, light trucks 8,001-10,000 pounds were not eligible.
• Revised Property Damage Liability Increased Limit Factors for light and medium trucks.
• Elimination of a premium charge for medical payments coverage on a service or utility trailer.
• Medical payments rates for non-zone rated trucks, tractors and trailers will now be used for zone rated autos as well.
• Equipment and Implement Dealer classes 73610 and 73620 are now ineligible for the Garage Policy in CAR and garage risks not subject to the Massachusetts Compulsory Insurance Law (Garage risks for which no dealer or repair plate has been issued) cannot be ceded to CAR.

You can find the complete details of CAR's rate change at:  http://www.commauto.com/manuals/commauto/2014/schedule107/PrintableInstructs.pdf. If you have any questions or comments, please contact your commercial lines underwriter or Arbella territory manager.

William S. Hughes, CPCU

Assistant Vice President, Commercial Lines