Commercial Auto FAQ’s
Commercial Automobile Insurance Plan FAQ
Who and what types of commercial vehicles are eligible?
- Applicant Eligibility (See Section 18 of KAIP Manual for complete list)
- Applicant unable to secure coverage in the voluntary market.
- Vehicle registered in KY.
- There is a duly licensed operator on the application.
- Named non-owner applicants.
- Multistate operations with headquarters based in Kentucky.
- Risks Not Eligible
- Private passenger non-fleet (unless required by filing).
- Miscellaneous non-fleet motorized vehicles that may or may not be registered
What coverages are available in commercial auto?
- Basic Combined BI and PD Single Limits – $60,000.
- Optional Available under the plan:
- $125,000
- $150,000
- $325,000
- $350,000
- Higher limits available if required by state or federal filing.
- PIP basic limits of $10,000 with $10,000 increments up to total maximum of $40,000.
- UM and UIM available at the standard limits specified in the manual.
When will coverage become effective?
- Applications not requiring filings or limits in excess of $350,000.
- Applications delivered via USPS
- Become effective at 12:01 a.m. on the day following the date of mailing as shown on the postmark.
- If no postmark, effective 12:01 a.m. on the day following receipt by the plan office.
- For later requested date – not to exceed 30 days.
- Applications delivered via USPS
- Applications requiring filings or limits in excess of $350,000.
- Effective no earlier than 15 days following receipt of the completed application (accompanied by the prescribed deposit).
- Exception is an applicant re-applying after completion of a 3-year assignment period.
What payment plans are available for commercial auto?
All plans require 40% down to be paid to servicing carrier via certified check, bank check, or money order. Plans available as follows:
- Annual/Full Pay
- Single bill balance – remainder to be paid within 30 days of date of premium notice.
- Installments (40-30-30)
- 30% due in 90 day increments based on effective date of policy.
- $4 service charge per payment.
- Premium finance
- 40% down.
- A copy of finance agreement must be submitted with application.
What happens when a Commercial Auto Application is received?
- Applications are date stamped when received.
- Applications are checked for completion and if not properly completed or required forms are not attached, it will be returned for additional information. This may delay the coverage effective date.
- Applications are assigned to the Servicing Carrier (National Specialty Insurance Company, serviced by AIPSO).
- The appliation shall be evidence of temporary insurance subject to the conditions outlined in Section 16 of the application.
- The Servicing Carrier will mail the policy and insurance cards within 30 days.
- All billing, claims and policy administration is handled by the Servicing Carrier.