TECH
TALK
2016 MAP -- What‘s the Deal?
December 2016
Irene Morrill, CPCU, CIC, ARM, CRM, CRIS, LIA, CPIW
Vice President of Technical Affairs
So, AIB (Automobile Insurers Bureau) has written, filed and received approval of a new edition of the
Massachusetts Auto Policy (MAP). The current edition in use is the 2008 with a couple of amendatory
endorsements along the way, such as adding a provision to discuss how actual cash value is determined and
adding a vehicle sharing exclusion.
So, what does it mean that AIB has created a newer version of the MAP in the wonderful world of competitive
auto? I‘m not exactly sure. The best answer I can give is ... it depends ... on how insurers interpret some of the new
policy provisions or whether they adopt it at all.
Behind the Scenes ...
Donna McKenna, VP of Communications; Kathy Cormier, CPPL, Member Support Specialist; and I have spent hours
reviewing the AIB filings. We had multiple concerns with the 2015 MAP filing which we shared with AIB officials
and various auto experts around the country. The GOOD news is that, after several meetings and consultation
with an industry expert, AIB agreed to withdraw the 2015 MAP and file the 2016 MAP that addressed most of our
concerns. The recently-approved 2016 MAP has many of the changes recommended by MAIA but still contains
reductions in overall coverage from the 2008 MAP.
We will be offering a course in early 2017 to identify the reductions and changes in coverage so that you will be
able to answer client coverage questions. In this article, I am only going to focus on ONE of the changes. I know
you find that difficult to believe, but we think this particular change could be of GREAT concern to your clients
and to the personal umbrella companies of your clients if it‘s not addressed.
My BIGGEST concern with the 2016 MAP …
So … when your clients ask you if their MAP follows them when they go on vacation, what do you say?
(Please feel free to search the massagent.com website for various articles on the MAP and renting a car.) The short
answer is yes … Parts 2, 3, 4, 5, 6, 7, 9 and 12 can follow you when you rent a car on vacation in policy coverage
territory. While we understand the intent was for the MAP to follow, the punctuation in the 2016 MAP made us
wonder whether Part 4. Damage to Someone Else’s Property will, indeed, follow.
2008 Part 4. Damage to Someone Else’s Property Insuring Agreement ...
Under this Part, we will pay damages to someone else whose auto or other property is damaged in an
accident. The damages we will pay are the amounts that person is legally entitled to collect for property (continued on page 2)
Massachusetts Association of Insurance Agents
91 Cedar Street - Milford, MA 01757
TECH Hotline 800.870.7091 * 800.972.9312 * 508.634.2900 * 508.634.2929 (FAX)
December 2016
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damage through a court judgement or settlement. We will pay only if you or a household member
is legally responsible for the accident. We will also pay if someone else using your auto with your consent is
legally responsible for the accident. Damages include any applicable sales tax and the costs resulting from
the loss of use of the damaged property.
We ’re not looking at any other section of Part 4 but the insuring agreement. This paragraph, which has read the
same for decades, tells us that Part 4 pays if you or a household member is legally responsible for the accident.
This sentence advises us that Part 4 will respond when you or a household member are:
1) using an auto shown on the coverage selections page
2) using a rented or borrowed auto
3) vicariously liable for someone else’s auto
4) contractually assume responsibility of another for the use of an auto
Whew … what a GREAT sentence for you and household members. Most, if not ALL, personal umbrella carriers
require underlying insurance at specified amounts when you or household members are using owned or rented/
borrowed autos in auto coverage territory. This wonderful sentence does this. (PS: Part 5 Optional Bodily Injury in
the 2008 MAP reads the same way for you and household members.)
For other drivers (someone else) coverage is only provided when they are using your auto with your consent. Let
them go to their own policies when driving something other than your auto.
2016 MAP Language
Under this Part, we will pay for damage or destruction of the tangible property of others caused by an
accident and arising from the ownership, maintenance, or use of an auto, including loading and unloading.
The amount we will pay is the amount the owner of the property is legally entitled to collect through a
court judgment or settlement for the damaged property. We will pay only if you, a household member,
or someone else using your auto with your consent is legally responsible for the accident. The amount we
will pay includes, if any, applicable sales tax and the loss of use of the damaged property. The amount we
will pay does not include compensation for physical damage to, or towing or recovery of, your auto or other
auto used by you or a household member with the consent of the owner, or any decreased value or tangible
loss claimed to result from the property damage unless otherwise required by law.
This new language does NOT separate into two sentences how it applies to you and household members v.
someone else. It is one sentence which could be interpreted to RESTRICT you and household members to only
being covered while using YOUR auto.
You say, come on now, Irene, look at the first sentence that talks about “an auto.” Yes, but that is just a general
statement and is not specific as to who can be using an auto.
If you don’t think punctuation can make a difference in a contract, you are SADLY mistaken. There has been a
running battle for a decade now over the business exclusion in Parts 4 and 5 regarding delivery.
The business exclusion in Parts 4 and 5 of the 2008 MAP states:
While anyone is using a vehicle in the course of any business other than the business of selling, servicing,
repairing or parking autos. This exclusion does not apply to private passenger autos, or to pick-up trucks,
vans, or similar vehicles not used for the delivery or transportation of goods or materials unless such use is
incidental to your business of installing, maintaining, or repairing furnishings or equipment.
December 2016 3
Should one be able to deliver, say pizza or flowers, in a private passenger auto whether incidental or not as long
as it is not a public or livery activity (for hire)?
The MAIP manual and AIB manual Rule 27 never had a problem with private passenger auto delivery as long as it
wasn’t public livery (for hire). The MAIP manual Rule 27 merely restricted delivery in a pickup or van unless
incidental to the insured’s business of installing, maintaining or repairing furnishings or equipment. The AIB 1992
memorandum introducing this business language in the 6th edition stated they were merely “aligning the
language with the AIB MA Private Passenger Auto Manual” which meant the restriction for delivery was only
intended to apply to pickups and vans.
In the last few years some of your personal auto carriers have denied delivery use in private passenger autos even
though we supplied the agent with the decades old filings and memorandums discussing the intention. What AIB
or ISO intends is immaterial as neither organization sells the contract to the consumer. The insurance company
sells the contract.
Interesting Part 5 Optional Bodily Injury MAP 2016
AIB did NOT make this language change in Part 5 Optional Bodily Injury. There are still TWO sentences. One
stating coverage applies when you or a household member is legally responsible. The second restricting
coverage for someone else to the use of your auto with your permission.
We discussed our concerns regarding this language with AIB, and below is a letter to MAIA President and CEO
Frank Mancini from AIB President Dan Johnston regarding the intent of the Part 4 language:
Mr. Francis A. Mancini, Esquire, President & CEO
MAIA
91 Cedar Street
Milford, MA 01757
Dear Frank:
The Automobile Insurers Bureau of Massachusetts (AIB) and the Massachusetts Association of Insurance
Agents (MAIA) have had recent discussions regarding prior (2008) and current (2016) language defining
coverage under Part 4 of the AIB‘s MAP. Specifically, your concern is with regard to coverage for property
damage liability when driving a rented or borrowed car.
It was the drafter‘s intent, and the intent of the insurers‘ representatives participating in the development
of the new version of the policy, to provide coverage when driving a rented or borrowed car consistent
with the scope of coverage traditionally enjoyed by Massachusetts policyholders. This was accomplished
by language providing property damage liability coverage for an accident ... “arising from the ownership,
maintenance, or use of an auto ... “. Subsequent language further clarifies PDL coverage in general to be
extended to “you, a household member, or someone else using your auto with your consent ...“
So we believe it is the clear intent of the language to provide coverage to you and a household member
(as defined in the policy) when driving another car, including a rented or borrowed car. The language also
extends coverage to others driving your auto only with permission.
Cordially
Daniel J. Johnston, President
AIB
December 2016
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We would like to thank AIB for their willingness to address our concerns with the original 2015 edition of the MAP
and the remaining concerns we had with the 2016 edition. We truly appreciated the opportunity to work out some
clarifications in policy language that are in the best interests of the industry and consumers.
Have a super holiday season!
See you at a seminar!
*****
Good luck. If I can be of service to you, please call me, Irene Morrill, Vice President of Technical Affairs, at
800.870.7091 or email me at [email protected].
This article has been developed expressly for the members of MAIA. Reprint by other than members
without the express permission of the author is not permitted.