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AAIS Creates New Personal Auto Program for Insurers

AAIS Press Release: April 28, 2016

Ponte Vedra Beach, Fla., April 27, 2016—The first standardized personal auto insurance program launched in decades has been announced by a national insurance advisory organization.

In an address at the group’s annual “Main Event” conference, Edmund J. Kelly, president and CEO of the American Association of Insurance Services (AAIS), announced that the group would soon begin filing a comprehensive set of policy forms for a new AAIS Personal Auto Program designed for insuring standard and preferred classes of drivers.

AAIS provides policy forms, manual rules, rating information, and automation support for 34 programs of personal, commercial, agricultural, and inland marine insurance. More than 700 property/ casualty insurers of all sizes use one or more AAIS programs.

The new AAIS Personal Auto Program is the organization’s first venture into auto insurance, and the first new standardized auto program in decades to be made available for use by insurers.

“This program has been long-sought by many of our members,” said Kelly, who emphasized that the initiative would enable AAIS to better serve the needs of its members by enhancing competition in the largest personal line and ultimately allow carriers to have a full suite of AAIS-based personal lines products.

The initiative includes a newly crafted multi-state base form, plus all mandatory endorsements and more than 60 optional endorsements, a defining feature of the program.

“We have a state-of-the-art base form that was reviewed by independent coverage analysts and some of our members,” adds John Kadous, AAIS vice president of personal lines. “The program’s most distinctive feature, however, is the flexibility provided through its many optional endorsements.”

The program’s optional endorsements provide flexibility to address several categories of coverage, including:

Policy conditions, such as accident forgiveness, combined single limit, named driver exclusion;

Losses to components and personal property, such as custom and audio/video/data equipment, plus first-party coverage for injury to a pet;

Ownership arrangements, such as lessors, trusts, and joint owners;

Car-sharing and ride-sharing, including transportation network activity;

Coverage for non-owned autos; 

Coverage for non-autos, such as farm motor vehicles, low-speed vehicles, snowmobiles, and miscellaneous vehicles;

Coverage related to traveling, such as emergency roadside service, trip interruption, limited coverage in Mexico; and

Coverage for physical damage, including new vehicle replacement coverage, coverage for damage to a rental vehicle, and more.

“Understanding the competitive environment auto insurers operate in, we felt it was imperative to provide great flexibility,” adds Casey Brewer, AAIS senior product development specialist and the principal developer of the new AAIS auto forms.

“We’ve done this by providing a robust suite of optional endorsements to allow carriers to serve the diverse needs of their policyholders."

To learn more about the AAIS Personal Auto Program, go to http://www2.aaisonline.com/AAISauto.

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