Podcast
Questions and Answers
What is the primary purpose of the California Automobile Assigned Risk Plan (CAARP)?
What is the primary purpose of the California Automobile Assigned Risk Plan (CAARP)?
How are CAARP assignments distributed among insurance companies?
How are CAARP assignments distributed among insurance companies?
Who is eligible to submit applications to the California Automobile Assigned Risk Plan?
Who is eligible to submit applications to the California Automobile Assigned Risk Plan?
What is required for licensed agents/brokers to become certified producers?
What is required for licensed agents/brokers to become certified producers?
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Who is eligible for CAARP insurance?
Who is eligible for CAARP insurance?
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What is required for certified producers to maintain their certification?
What is required for certified producers to maintain their certification?
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What is required for bodily injury coverage in a CAARP policy?
What is required for bodily injury coverage in a CAARP policy?
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What is the minimum limit for property damage in uninsured motorists coverage in CAARP?
What is the minimum limit for property damage in uninsured motorists coverage in CAARP?
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What document can be used as alternative proof of ownership if a current vehicle registration is not available?
What document can be used as alternative proof of ownership if a current vehicle registration is not available?
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Who has the authority to issue insurance ID cards or bind coverage in CAARP?
Who has the authority to issue insurance ID cards or bind coverage in CAARP?
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What is the duration of the assignment notice as proof of insurance in CAARP?
What is the duration of the assignment notice as proof of insurance in CAARP?
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What type of policy can be purchased by a person who does not own a vehicle but wants to be insured if they may drive an uninsured vehicle?
What type of policy can be purchased by a person who does not own a vehicle but wants to be insured if they may drive an uninsured vehicle?
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Study Notes
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.
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Description
Test your knowledge about the California Automobile Assigned Risk Plan (CAARP), a program designed to provide automobile liability insurance to individuals who are unable to get insurance through ordinary methods. Learn how CAARP works and how it assigns applications to insurance companies.
