CAARP: Understanding the California Automobile Assigned Risk Plan

Purpose of CAARP

• CAARP provides automobile liability insurance to individuals who are unable to get insurance through ordinary methods.
• The plan assigns applications to insurance companies, which must accept them based on their market share.

Eligibility to Place Business with CAARP

• Only certified producers can submit applications to CAARP.
• To become a certified producer, licensed agents/brokers must complete four one-hour courses.
• Certified producers must complete a seminar requirement every four years to maintain their certification.

Eligibility Requirements for Applicants

• CAARP is designed for drivers who do not qualify as good drivers and are unsuccessful in obtaining insurance from non-standard or approved surplus lines insurance companies.
• The plan is available to all California residents, non-residents with vehicles registered in California, and non-residents who are members of military forces stationed in California.

How Business is Placed Through CAARP

• Producers must submit fully completed applications with required documents, including photocopies of driver's licenses, vehicle registrations, and proof of ownership.
• Alternative proof-of-ownership documents are accepted if a current vehicle registration is not available.

Coverages Available and Required

• Bodily injury and property damage liability, medical payments, and uninsured motorists coverage are available.
• Assigned companies are required to write a policy for bodily injury coverage with 15/30/5 limits.
• Medical payments coverage of $1,000 per accident is an available option.
• Uninsured motorists coverage is available at minimum limits of $15,000 per person, $30,000 per occurrence, and $3,500 for property damage.
• Named non-owner policies are available for individuals who do not own a vehicle but want to be insured.

When Coverage May be Bound

• CAARP is not an insurance company, and producers do not have the authority to issue insurance ID cards or bind coverage.
• Applicants should keep a copy of the completed application until the assignment notice from CAARP is received.
• The assignment notice is good for 45 days as proof of insurance and should be used until the insured receives an ID card from the assigned company.