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Rule 9 FAQ's

1. What is the additional charge for a non-fault accident?
   
   
2. My insured has three at fault accidents - how many points do I charge?
   
   
3. What is the additional charge for an accident and a ticket for "failure to yield"?
   
   
4. My insured has two D.W.I.s, what is the additional charge?
   
   
5. The insurance company is charging my insured a 15% charge for an "overload" ticket, received while my insured was operating a company truck. Is this correct?
   
   
6. My insured has a 17 year old son with a clear driving record. Dad has two tickets for "speeding" which the company has charged against the son on his car. Should this not be charged against the fathers car?
   
   
7. My insured has a "speeding" ticket which will drop off his record in two months. Will the company adjust the premium?
   
   
8. The company is charging for a ticket for "glasses restriction". Is this correct?
   
   
9. Is it correct that a company may charge for moving type violations only?
   
   
10. The company is charging for a ticket "failure to appear". Is this correct?
    
    
11. My insured had a one car accident, he overturned. Does an additional charge apply?
    
    
12. What is the additional charge for a "no driver's license" ticket?
    
    
13. What is the additional charge for a ticket "Expired driver's license"?
    
    
14. Is there an additional charge for a "no motorcycle endorsement" ticket?
    
    
15. What is the additional charge for a "no commercial operators license"?
    
    
16. I have an insured who has an owners policy for which there are additional charges through the Association. He is now required to obtain a non-owner type policy for his occupation. Will these additional charges apply to his non-owner policy?
    
    
17. I have an insured who needs a policy. He had a D.W.I. just under three years ago. Will the company delete the additional charge at the three year anniversary?
    
    
18. My insured had an accident with a fixed object. Do additional charges apply?
    
    
19. My insured has two assignments, each with five vehicles. Both companies are applying additional charges under Rule 9. Is this correct?
    
    
20. My insured has terminated a driver, because of his driving record. The company will not delete the drivers' additional charge. Is this correct?
    
    
21. My insured has an entry on his driving record showing "drug conviction". Is there an additional charge?
    
    
22. My insured has an owners policy through the Association. He has now obtained a Named Operator-Government Employee policy which was assigned to the same company. The company is applying the additional charge on this second policy for an accident in which the insured's child was at fault and a claim was paid. Is this correct?
    
    
23. My applicant received a ticket in another state. Is there an additional charge?
    
    
24. My applicant received a ticket for racing. Is this a major or minor violation?
    
    
25. My insured has a son on her TAIPA policy with a driving record charge. The son now requires an SR-22; therefore, we are applying for a Named Non-Owner policy. Will driving record charge apply to both the parents' and the son's policy?
    
    

Questions & Answers

1. What is the additional charge for a non-fault accident?
   
   Fault, no fault does not apply through the Association. All driving record charges are under Rule 9. If there is any Bodily Injury or Property Damage to others, and if one of the 5 exceptions, shown in Rule 9, does not apply, there will be a 20% additinal charge.
   
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2. My insured has three fault accidents - how many points do I charge?
   
   Same answer as shown in question 1 applies. If there is an additional charge for each accident, total additional charge will be 60%.
   
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3. What is the additional charge for an accident and a ticket for "failure to yield"?
   
   If the accident is chargeable under Rule 9, there will be a 35% charge, 15% for the ticket and 20% for the accident.
   
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4. My insured has two D.W.I.'s, what do I charge?
   
   Each D.W.I. has a 60% charge; however, the maximum charge under Rule 9 is 100%. If an SR-22 is required, there would be an additional $20 premium charge on the policy under Rule 10.
   
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5. The insurance company is charging my insured a 15% additional charge for an "overload" ticket, received while my insured was operating a company truck. Is this correct?
   
   Yes, since all items shown on the M.V.R. are violations of the traffic code, each item shown on the M.V.R. is chargeable, unless excluded in the rule.
   
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6. My insured has a 17 year old son with a clear driving record. Dad has 2 tickets for "speeding" which the company has charged against the son on his car. Should this not be charged against the fathers car?
   
   Under Rule 9, all driving records are combined, for all drivers, up to a 100% maximum. This charge is then applied to the highest rated vehicle, with the remaining vehicles being without charge.
   
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7. My insured has a "speeding" ticket which will drop off his record in 2 months. Will the company adjust the premium?
   
   The company will charge until expiration of the policy. The charge will drop off at renewal.
   
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8. The company is charging for a ticket for "glasses restriction". Is this correct?
   
   Yes, all violations are charged, unless excluded in Rule 9.
   
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9. Is it correct that a company may charge for moving type violations only?
   
   No. Rule 9 states traffic convictions, it does not state moving violations.
   
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10. The company is charging for a ticket "failure to appear". Is this correct?
    
    No. It is excluded under Rule 9.
    
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11. My insured had a one car accident, he overturned. Does an additional charge apply?
    
    Only if there was a B.I. or P.D. to others. List the accident on the application; however, if there was no B.I. or P.D. to others show same and there will be no charge.
    
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12. What is the additional charge for a "no driver's license" ticket?
    
    Usually the additional charge under Rule 9 is 60%. If the producer states that the insured had a valid license at the time, but did not have it on his person, then the charge must be amended to 15%. If so, this should be explained on the application.
    
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13. What is the charge for a ticket "Expired driver's license"?
    
    The additional charge is 60%, as it is for driving without a valid license.
    
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14. Is there an additional charge for a "no motorcycle endorsement" ticket?
    
    No, provided there is an otherwise valid license in force. If there was not a valid license in force, a ticket would probably be given for "no drivers license" and a 60% additional charge applied.
    
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15. What is the additional charge for a "no commercial operators license"?
    
    The additional charge is 60%, as it is not a valid license.
    
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16. I have an insured who has an owners policy for which there are additional charges through the Association. He is now required to obtain a non-owner type policy for his occupation. Will these additional charges apply to his non-owner policy for his driving record?
    
    Additional charges will apply to both policies, whether under the same assignment number, or under different assignments.
    
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17. I have an insured who needs a policy. He had a D.W.I. just under three years ago. Will the company delete the additional charge at the 3 year anniversary?
    
    If the policy is a Personal Automobile policy, the additional charge will delete 36 months immediately following the date of conviction, whether mid-term or at expiration. Notify the company on this anniversary date. If on a Business Auto policy, the additonal charge is applied until next renewal date.
    
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18. My insured had an accident with a fixed object. Do additional charges apply?
    
    Only if there is B.I. or P.D. to others. Was the fixed object damaged?
    
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19. My insured has two assignments, each with five vehicles. Both companies are applying additionalcharges under Rule 9. Is this correct?
    
    Since each company has exposure to these drivers, each company is entitled to the additional charge, on the highest rated vehicle.
    
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20. My insured has terminated a driver, because of his driving record. The company will not delete the additional charge. Is this correct?
    
    If the driver was on the policy at inception, the company will charge until expiration. This applies to added & deleted drivers.
    
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21. My insured has an entry on his driving record showing "drug conviction". Is there an additional charge?
    
    No. This indicates that the insured was convicted of a drug offense. These offenses are to be listed on the MVR.
    
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22. My insured has an owners policy through the Association. He has now obtained a Named Operator-Government Employee policy which was assigned to the same company. The company is applying the additional charges on this second policy for an accident in which the insured's child was at fault and a claim was paid. Is this correct?
    
    Yes, since a company charges for accidents either as owner or operator.
    
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23. My applicant received a ticket in another state. Is there an additional charge?
    
    Yes, if not excluded by Rule 9.
    
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24. My applicant received a ticket for racing. Is this a major or minor violation?
    
    15% additional charge will apply.
    
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25. My insured has a son on her TAIPA policy with a driving record charge. The son now requires an SR-22; therefore, we are applying for a Named Non-Owner policy. Will driving record charge apply to both the parents' and the son's policy?
    
    There is an exception under Rule 9 which states that additional charges applied in the rating of the owners TAIPA policy shall not be applied in the rating of the TAIPA Named Non-Owner policy which insures a relative of the owner, who is resident of the same household.
    
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