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  1. When are insurers required to obtain a signed BI selection form?

    Section 3009(6) states that insurers are required to do all of the following at new business or renewal:
     
    • Provide the applicant/named insured the liability options available.
    • Provide the applicant/named insured a price for each option.
    • Offer the applicant/named insured the options and BI Selection form.

    New Business – At the time of application, if the applicant does not provide a signed and completed BI selection form, the insurer shall issue the policy with $250,000/$500,000 limits.

    First Renewal Effective on or after July 2, 2020 – If the insured does not provide a signed and completed BI selection form, the insurer shall issue the policy with $250,000/$500,000 limits.

    Subsequent Renewals – If the insured does not request the BI selection form or a change in coverage, the insurer shall renew the policy with the existing BI limits.

The following questions were posted on 10/11/19.

  1. When are carriers required to obtain a signed PIP Selection/Rejection form?

    Carriers are required to provide a PIP Selection/Rejection form:

    1. at the time of new business; and
    2. at renewal.

    If the customer does not return a completed form at application, the carrier should issue the policy with unlimited PIP. Under 3107c, if the customer does not return a completed form at renewal, but pays their renewal premium, the statute allows for a “rebuttable presumption” that the insured wants to maintain the current limit and the carrier can renew the policy with the same PIP selection. However, under 3107d, if the insured had previously rejected PIP and does not return a completed form, the renewal should be issued with unlimited PIP.

  2. What form is the company required to use for customers to select their BI limits?

    Companies must use the form issued by the Director. Companies are permitted to add their form number and a logo if desired. Companies are not permitted to make any other changes.

The following questions were posted on 12/06/19.

PIP and BI Forms Bulletin

  1. When will the PIP and BI selection forms be issued by DIFS?

    The Choice of Bodily Injury Liability Coverage Limits Form and Personal Injury Protection (PIP) Choice Forms have been transmitted to companies via Bulletin 2020-03-INS. Word versions have also been emailed to company SERFF contacts.

BI Form

  1. What CSL limit is equivalent to $250,000 per person/$500,000 per occurrence?

    $510,000 CSL is the appropriate CSL equivalent to $250,000/$500,000 as you must add $10,000 for property damage.

  2. Will the BI form be updated to accommodate companies that only offer CLS?

    No, the BI form was created to follow the statute which requires insurers to issue a policy at $250,000/$500,000 if the form is not returned.

  3. Can companies modify the BI form if they only offer CSL?

    Companies must use the BI form issued by the Director. When you provide the applicant/insured the options and price for each option, you may explain that their policy will be issued at $510,000 if you do not offer split limits

  4. Must a company change the limits on a policy with CSL limits greater than or equal to $510,000 if the customer does not return the BI form?

    Customers with a CSL limit greater than or equal to $510,000 will not need to have their limit changed if they do not return the form.

PIP Form

  1. Is the intent of the department that the Commercial form would be the only form used by Commercial Auto customers/applicants?

    If the named insured is an individual, you should use the individual form. If the named insured is a Business/Company, you should use the Commercial/Business form.

  2. The Commercial form does not provide options for the $50,000 Medicaid nor the $250,000 Opt out options when Medicare &/or other qualifying health insurance is carried. Are we correct in interpreting this to mean that these options do not apply to Commercial Auto policies?

    If the named insured is a business/company, they are not eligible for the PIP options of $50,000, $250,000 with exclusions, or no PIP.