Filing at a Glance - ambest.com · Objection Letter Objection Letter Status Additional Information...

Filing at a Glance Companies: LM General Insurance Company

LM Insurance Corporation

Product Name: LibertyGuard Personal Automobile Policy Program

State: West Virginia

TOI: 19.0 Personal Auto

Sub-TOI: 19.0000 Personal Auto Combinations

Filing Type: Rule

Date Submitted: 08/11/2014

SERFF Tr Num: LBPM-129674243

SERFF Status: Closed-Approved

State Tr Num: 100028252

State Status: Approved

Co Tr Num: 14-WV-P-AO-RU-GRS-TM

Effective DateRequested (New):

11/17/2014

Effective DateRequested (Renewal):

11/17/2014

Author(s): John Donnelly

Reviewer(s): Jeremy White (primary)

Disposition Date: 10/02/2014

Disposition Status: Approved

Effective Date (New):

Effective Date (Renewal):

SERFF Tracking #: LBPM-129674243 State Tracking #: 100028252 Company Tracking #: 14-WV-P-AO-RU-GRS-TM

State: West Virginia First Filing Company: LM General Insurance Company, ...

TOI/Sub-TOI: 19.0 Personal Auto/19.0000 Personal Auto Combinations


Project Name/Number: 14-WV-P-AO-RU-GRS-TM/WV PL AO Telematics

PDF Pipeline for SERFF Tracking Number LBPM-129674243 Generated 10/06/2014 07:19 AM

General Information

Company and Contact

Project Name: 14-WV-P-AO-RU-GRS-TM Status of Filing in Domicile: Not Filed

Project Number: WV PL AO Telematics Domicile Status Comments:

Reference Organization: Reference Number:

Reference Title: Advisory Org. Circular:

Filing Status Changed: 10/02/2014

State Status Changed: 10/02/2014 Deemer Date: 10/11/2014

Created By: John Donnelly Submitted By: John Donnelly

Corresponding Filing Tracking Number:

Filing Description:

In accordance with the prior approval provision, LM General Insurance Company (LMGIC) and LM Insurance Corporation (LM-IC) respectfully request to revise the rules for their Personal Automobile Program. We are requesting these changes beeffective on or after 11/17/2014 for new and renewal business.

Summary of Changes:LM General Insurance Company (LMGIC) and LM Insurance Corporation (LM-IC) are introducing the RightTrack Discount andLow Mileage Discount.

The RightTrack Discount and Low Mileage Discount are voluntary rating factors based on measured driving behavior. Theseprograms will initially be offered through our Local Sales Office (LSO), Direct Response Center (DRC) and other partnerchannels.

Rate Effect:There is no rate effect associated with this filing.

Filing Contact InformationJohn Donnelly, Senior Compliance Analyst [email protected]

175 Berkeley Street

Mailstop 04G/H

Boston, MA 02116

617-357-9500 [Phone] 45340 [Ext]

617-654-3452 [FAX]







Filing Fees

Filing Company InformationLM General Insurance Company

175 Berkeley Street

Boston, MA 02116

(617) 357-9500 ext. [Phone]

CoCode: 36447

Group Code: 111

Group Name: Liberty MutualGroup

FEIN Number: 22-2227328

State of Domicile: Illinois

Company Type: Property andCasualty

State ID Number:

LM Insurance Corporation

175 Berkeley Street

Boston, MA 02116

(617) 357-9500 ext. [Phone]

CoCode: 33600

Group Code: 111

Group Name: Liberty MutualGroup

FEIN Number: 04-3058504

State of Domicile: Illinois

Company Type:

State ID Number:

Fee Required? Yes

Fee Amount: $150.00

Retaliatory? No

Fee Explanation: 75/co/rule filing

Per Company: Yes

Company Amount Date Processed Transaction #LM General Insurance Company $75.00 08/11/2014 84870800LM Insurance Corporation $75.00 08/11/2014 84870801







Correspondence Summary Objection Letters and Response LettersObjection Letters Response Letters

Status Created By Created On Date Submitted Responded By Created On Date SubmittedAdditionalInformationRequired

Jeremy White 08/20/2014 08/20/2014 John Donnelly 09/02/2014 09/02/2014







Objection Letter Objection Letter Status Additional Information Required

Objection Letter Date 08/20/2014

Submitted Date 08/20/2014

Respond By Date

Dear John Donnelly,

Introduction: Please explain in further detail what the right track discount and low mileage discount programs are for. Do you look at speed?is GPS involved? Do you have the capability of using this during the investigation of a claim. Do you look at hard braking? Is the lowmileage discount for those who travel low miles such as under 10K. Do you lose the discount if you go above 10k?We need more detail as to what you are doing.

What information did you use to determine the right track group levels and low mileage group levels? What information did you useto determine the factors for each low mileage group level and for each right track group factor? Did you look at any studies?

Conclusion:

Sincerely,

Jeremy White







Response Letter Response Letter Status Submitted to State

Response Letter Date 09/02/2014

Submitted Date 09/02/2014

Dear Jeremy White,

Introduction: Thank you for reviewing our filing.

Response 1

Comments: Our response is attached.

Changed Items:

Supporting Document Schedule Item ChangesSatisfied - Item: response 9 2 2014Comments:Attachment(s): WV Objection 1 8 20 14.pdf

No Form Schedule items changed.

No Rate/Rule Schedule items changed.

Conclusion: Thank you,

John Donnelly

Sincerely,

John Donnelly







Rate/Rule Schedule

Item

No.

Schedule Item

Status Exhibit Name Rule # or Page # Rate Action

Previous State

Filing Number Attachments1 Rating Manual Page Page R-V029-1&2 New WV-AO-LMGIC-LM-IC-R

Pages Vehicle_Cur_029.pdf2 Rating Manual Page Page R-V030-1&2 New WV-AO-LMGIC-LM-IC-R

Pages Vehicle_Cur_030.pdf3 Rating Manual Page F6E New RightTrack Discount Rule

Page Proof.pdf4 Rating Manual Page Premium Determination Replacement Premium Determination

Proof.pdf5 Rating Manual Page F6D New Low Mileage Discount Rule

Page Proof.pdf6 Rating Manual Page Index, Section A Replacement Index and Sec A Proof.pdf







West Virginia

Automobile Rating Manual

Vehicle Factor

Low Mileage Group BI PD MP Comp Coll UM UIM Fixed

0 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

1 0.9900 0.9900 0.9900 0.9900 0.9900 0.9900 0.9900 0.9900

2 0.9800 0.9800 0.9800 0.9800 0.9800 0.9800 0.9800 0.9800

3 0.9700 0.9700 0.9700 0.9700 0.9700 0.9700 0.9700 0.9700

4 0.9600 0.9600 0.9600 0.9600 0.9600 0.9600 0.9600 0.9600

5 0.9500 0.9500 0.9500 0.9500 0.9500 0.9500 0.9500 0.9500

6 0.9400 0.9400 0.9400 0.9400 0.9400 0.9400 0.9400 0.9400

7 0.9300 0.9300 0.9300 0.9300 0.9300 0.9300 0.9300 0.9300

8 0.9200 0.9200 0.9200 0.9200 0.9200 0.9200 0.9200 0.9200

9 0.9100 0.9100 0.9100 0.9100 0.9100 0.9100 0.9100 0.9100

10 0.9000 0.9000 0.9000 0.9000 0.9000 0.9000 0.9000 0.9000

11 0.8900 0.8900 0.8900 0.8900 0.8900 0.8900 0.8900 0.8900

12 0.8800 0.8800 0.8800 0.8800 0.8800 0.8800 0.8800 0.8800

13 0.8700 0.8700 0.8700 0.8700 0.8700 0.8700 0.8700 0.8700

14 0.8600 0.8600 0.8600 0.8600 0.8600 0.8600 0.8600 0.8600

15 0.8500 0.8500 0.8500 0.8500 0.8500 0.8500 0.8500 0.8500

16 0.8400 0.8400 0.8400 0.8400 0.8400 0.8400 0.8400 0.8400

17 0.8300 0.8300 0.8300 0.8300 0.8300 0.8300 0.8300 0.8300

18 0.8200 0.8200 0.8200 0.8200 0.8200 0.8200 0.8200 0.8200

19 0.8100 0.8100 0.8100 0.8100 0.8100 0.8100 0.8100 0.8100

20 0.8000 0.8000 0.8000 0.8000 0.8000 0.8000 0.8000 0.8000

21 0.7900 0.7900 0.7900 0.7900 0.7900 0.7900 0.7900 0.7900

22 0.7800 0.7800 0.7800 0.7800 0.7800 0.7800 0.7800 0.7800

23 0.7700 0.7700 0.7700 0.7700 0.7700 0.7700 0.7700 0.7700

24 0.7600 0.7600 0.7600 0.7600 0.7600 0.7600 0.7600 0.7600

25 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500

26 0.7400 0.7400 0.7400 0.7400 0.7400 0.7400 0.7400 0.7400

27 0.7300 0.7300 0.7300 0.7300 0.7300 0.7300 0.7300 0.7300

28 0.7200 0.7200 0.7200 0.7200 0.7200 0.7200 0.7200 0.7200

29 0.7100 0.7100 0.7100 0.7100 0.7100 0.7100 0.7100 0.7100

30 0.7000 0.7000 0.7000 0.7000 0.7000 0.7000 0.7000 0.7000

31 0.6900 0.6900 0.6900 0.6900 0.6900 0.6900 0.6900 0.6900

32 0.6800 0.6800 0.6800 0.6800 0.6800 0.6800 0.6800 0.6800

33 0.6700 0.6700 0.6700 0.6700 0.6700 0.6700 0.6700 0.6700

Version 1.04 effective per Section ALM General Insurance Company

LM Insurance Corporation Page R-V029-1

West Virginia


Vehicle Factor

Low Mileage Group BI PD MP Comp Coll UM UIM Fixed

34 0.6600 0.6600 0.6600 0.6600 0.6600 0.6600 0.6600 0.6600

35 0.6500 0.6500 0.6500 0.6500 0.6500 0.6500 0.6500 0.6500

36 0.6400 0.6400 0.6400 0.6400 0.6400 0.6400 0.6400 0.6400

37 0.6300 0.6300 0.6300 0.6300 0.6300 0.6300 0.6300 0.6300

38 0.6200 0.6200 0.6200 0.6200 0.6200 0.6200 0.6200 0.6200

39 0.6100 0.6100 0.6100 0.6100 0.6100 0.6100 0.6100 0.6100

40 0.6000 0.6000 0.6000 0.6000 0.6000 0.6000 0.6000 0.6000

41 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900

42 0.5800 0.5800 0.5800 0.5800 0.5800 0.5800 0.5800 0.5800

43 0.5700 0.5700 0.5700 0.5700 0.5700 0.5700 0.5700 0.5700

44 0.5600 0.5600 0.5600 0.5600 0.5600 0.5600 0.5600 0.5600

45 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500

46 0.5400 0.5400 0.5400 0.5400 0.5400 0.5400 0.5400 0.5400

47 0.5300 0.5300 0.5300 0.5300 0.5300 0.5300 0.5300 0.5300

48 0.5200 0.5200 0.5200 0.5200 0.5200 0.5200 0.5200 0.5200

49 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100

50 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000



West Virginia


Vehicle Factor

RightTrack Group BI PD MP Comp Coll UM UIM Fixed

0 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

1 0.9900 0.9900 0.9900 0.9900 0.9900 0.9900 0.9900 0.9900

2 0.9800 0.9800 0.9800 0.9800 0.9800 0.9800 0.9800 0.9800

3 0.9700 0.9700 0.9700 0.9700 0.9700 0.9700 0.9700 0.9700

4 0.9600 0.9600 0.9600 0.9600 0.9600 0.9600 0.9600 0.9600

5 0.9500 0.9500 0.9500 0.9500 0.9500 0.9500 0.9500 0.9500

6 0.9400 0.9400 0.9400 0.9400 0.9400 0.9400 0.9400 0.9400

7 0.9300 0.9300 0.9300 0.9300 0.9300 0.9300 0.9300 0.9300

8 0.9200 0.9200 0.9200 0.9200 0.9200 0.9200 0.9200 0.9200

9 0.9100 0.9100 0.9100 0.9100 0.9100 0.9100 0.9100 0.9100

10 0.9000 0.9000 0.9000 0.9000 0.9000 0.9000 0.9000 0.9000

11 0.8900 0.8900 0.8900 0.8900 0.8900 0.8900 0.8900 0.8900

12 0.8800 0.8800 0.8800 0.8800 0.8800 0.8800 0.8800 0.8800

13 0.8700 0.8700 0.8700 0.8700 0.8700 0.8700 0.8700 0.8700

14 0.8600 0.8600 0.8600 0.8600 0.8600 0.8600 0.8600 0.8600

15 0.8500 0.8500 0.8500 0.8500 0.8500 0.8500 0.8500 0.8500

16 0.8400 0.8400 0.8400 0.8400 0.8400 0.8400 0.8400 0.8400

17 0.8300 0.8300 0.8300 0.8300 0.8300 0.8300 0.8300 0.8300

18 0.8200 0.8200 0.8200 0.8200 0.8200 0.8200 0.8200 0.8200

19 0.8100 0.8100 0.8100 0.8100 0.8100 0.8100 0.8100 0.8100

20 0.8000 0.8000 0.8000 0.8000 0.8000 0.8000 0.8000 0.8000

21 0.7900 0.7900 0.7900 0.7900 0.7900 0.7900 0.7900 0.7900

22 0.7800 0.7800 0.7800 0.7800 0.7800 0.7800 0.7800 0.7800

23 0.7700 0.7700 0.7700 0.7700 0.7700 0.7700 0.7700 0.7700

24 0.7600 0.7600 0.7600 0.7600 0.7600 0.7600 0.7600 0.7600

25 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500 0.7500

26 0.7400 0.7400 0.7400 0.7400 0.7400 0.7400 0.7400 0.7400

27 0.7300 0.7300 0.7300 0.7300 0.7300 0.7300 0.7300 0.7300

28 0.7200 0.7200 0.7200 0.7200 0.7200 0.7200 0.7200 0.7200

29 0.7100 0.7100 0.7100 0.7100 0.7100 0.7100 0.7100 0.7100

30 0.7000 0.7000 0.7000 0.7000 0.7000 0.7000 0.7000 0.7000

31 0.6900 0.6900 0.6900 0.6900 0.6900 0.6900 0.6900 0.6900

32 0.6800 0.6800 0.6800 0.6800 0.6800 0.6800 0.6800 0.6800

33 0.6700 0.6700 0.6700 0.6700 0.6700 0.6700 0.6700 0.6700



West Virginia


Vehicle Factor

RightTrack Group BI PD MP Comp Coll UM UIM Fixed

34 0.6600 0.6600 0.6600 0.6600 0.6600 0.6600 0.6600 0.6600

35 0.6500 0.6500 0.6500 0.6500 0.6500 0.6500 0.6500 0.6500

36 0.6400 0.6400 0.6400 0.6400 0.6400 0.6400 0.6400 0.6400

37 0.6300 0.6300 0.6300 0.6300 0.6300 0.6300 0.6300 0.6300

38 0.6200 0.6200 0.6200 0.6200 0.6200 0.6200 0.6200 0.6200

39 0.6100 0.6100 0.6100 0.6100 0.6100 0.6100 0.6100 0.6100

40 0.6000 0.6000 0.6000 0.6000 0.6000 0.6000 0.6000 0.6000

41 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900 0.5900

42 0.5800 0.5800 0.5800 0.5800 0.5800 0.5800 0.5800 0.5800

43 0.5700 0.5700 0.5700 0.5700 0.5700 0.5700 0.5700 0.5700

44 0.5600 0.5600 0.5600 0.5600 0.5600 0.5600 0.5600 0.5600

45 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500 0.5500

46 0.5400 0.5400 0.5400 0.5400 0.5400 0.5400 0.5400 0.5400

47 0.5300 0.5300 0.5300 0.5300 0.5300 0.5300 0.5300 0.5300

48 0.5200 0.5200 0.5200 0.5200 0.5200 0.5200 0.5200 0.5200

49 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100 0.5100

50 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000 0.5000



LM General Insurance Company LM Insurance Corporation Automobile Rating Manual

F6E. RightTrack Discount At the request of the insured and per vehicle, Liberty Mutual Insurance will use telematics technology to collect mileage and driving behavior data. All compatible vehicles on the policy are eligible for this program and the insured must provide a valid email address. Upon enrollment, the RightTrack Discount will be applied to the vehicle as an endorsement and the RightTrack Group will initially be set to group 5 (refer to the Rating pages). After a review period of approximately 90 days, data collection will cease. The RightTrack Discount will be recalculated using the collected data and the RightTrack Group will be updated accordingly (refer to the Rating pages). The final discount assigned to the vehicle will persist with the vehicle for the life of the policy and will continue through renewal so long as the vehicle, or its replacement, remains on the policy. For the discount to apply to a replacement vehicle, the replacement vehicle should be added to the insured’s policy within a reasonable time of the removal of the existing vehicle. If a vehicle is replaced during the review period, then the program may be continued by enrolling the replacement vehicle. If any of the following conditions occur during the review period, the vehicle will be withdrawn from the program and the RightTrack Discount will be removed:

• Insured does not complete enrollment • Voluntary withdrawal at the insured’s request • Insufficient information for derivation of RightTrack Discount Factor

A vehicle cannot participate in both the RightTrack Discount and the Low Mileage Discount. West Virginia Version 1.04 Effective Per Page A


West Virginia Version 1.04 Effective Per Page A

Premium Determination – Household Composition Factor

Household Composition Factor

Factor

BI PD MP Comp Coll UM UIM FE

Number of Operators

Multi-Car Discount x x x x x x x x

Minimum Age x x x x x x x x

Maximum Age x x x x x x x x

Minimum Years Licensed x x x x x x x x

Number of Operators & Number of Vehicles

x x x x x x x x


= = = = = = = =

Premium Determination – Final Vehicle Factor

Final Vehicle Factor Factor


Vehicle Factor

Vehicle Discount Factor x x x x x x x x

Final Vehicle Factor = = = = = = = =

Vehicle Discount Factor Factor


New-to-Liberty

Hybrid x x x x x x x x

Vehicle Safety x x x x x x x x

Low Mileage Discount Group x x x x x x x x

Right Track Discount Group x x x x x x x x

Vehicle Discount Factor = = = = = = = =

Vehicle Factor Factor


VIN Factor

Ownership x x x x x x x x

Annual Mileage x x x x x x x x

Usage x x x x x x x x

Purchased New/Used x x x x x x x x

Coverage Combination x x x x x x x x

Vehicle Factor = = = = = = = =


F6D. Low Mileage Discount At the request of the insured and per vehicle, Liberty Mutual Insurance will verify vehicle mileage. All compatible vehicles on the policy are eligible for this program and the insured must provide a valid email address. Upon enrollment, the Low Mileage Discount will be applied to the vehicle as an endorsement and the Low Mileage Group will initially be set to group 5 (refer to the Rating pages). After a review period of approximately 90 days, data collection will cease. The Low Mileage Discount will be recalculated using the collected data and the Low Mileage Group will be updated accordingly (refer to the Rating pages). The final discount assigned to the vehicle will persist with the vehicle for the life of the policy and will continue through renewal so long as the vehicle, or its replacement, remains on the policy. For the discount to apply to a replacement vehicle, the replacement vehicle should be added to the insured’s policy within a reasonable time of the removal of the existing vehicle. If a vehicle is replaced during the review period, then the program may be continued by enrolling the replacement vehicle. If any of the following conditions occur during the review period, the vehicle will be withdrawn from the program and the Low Mileage Discount will be removed:

• Insured does not complete enrollment • Voluntary withdrawal at the insured’s request • Insufficient information for derivation of Low Mileage Discount Factor

A vehicle cannot participate in both the RightTrack Discount and the Low Mileage Discount. West Virginia Version 1.04 Effective Per Page A



F2C – Vehicle Ownership F2C

F2D – Annual Mileage F2D

F2E – Status at Purchase F2E

F2F – Coverage Combination F2F

F3. Incident Factor F3

F3A – Chargeable Accidents F3A

F3B – Violation Definitions F3B

F3C – Accident Forgiveness F3C

F4. Tier Factor F4

F5. Territory Factor F5

F6. Vehicle Discount Factor F6

F6A – New-to-Liberty Vehicle Discount F6A

F6B – Vehicle Safety Discount F6B

F6C – Hybrid Vehicle Discount F6C

F6D – Low Mileage Discount F6D

F6E – Right Track Discount F6E

F7. Policy Discount Factor F7

F7A – Paid-in-Full Discount F7A

F7B – Electronic Funds Transfer (EFT) Discount F7B

F7C – Payroll Deduction Discount F7C

F7D – Early Shopper Discount F7D

F7E – Longevity Factor F7E

F7F – Newlywed Discount F7F

F7G – New Teen Driver Discount F7G

F7H – Newly Independent Discount F7H

F7I – New Move Discount F7I

F7J – Multi-Policy Discount F7J

F7K – Paperless Policy Discount F7K

F8. Limit & Deductible Factor F8

F9. Certified Risks (Financial Responsibility Laws) F9

F10. Cycle Guard F10

F11. Fixed Expense F11

F12. Taxes and Surcharges F12

SECTION TC – Trailer and Camper Coverage and Rating TC

TC1. Liability Insurance TC1



SECTION A – INDEX PAGE

Version Effective Date 1.00 2/20/2012

1.01 6/17/2013

1.02 12/19/2013

1.03 2/20/2014

1.04 11/17/2014

Supporting Document Schedules Bypassed - Item: Rate Abstract P&CBypass Reason: Not applicable.Attachment(s):Item Status:Status Date:

Satisfied - Item: Mock PagesComments:

Attachment(s): Index and Sec A Mock.pdfPremium Determination Mock.pdf

Item Status:Status Date:

Satisfied - Item: response 9 2 2014Comments:Attachment(s): WV Objection 1 8 20 14.pdfItem Status:Status Date:









F2C – Vehicle Ownership F2C

F2D – Annual Mileage F2D

F2E – Status at Purchase F2E

F2F – Coverage Combination F2F F3. Incident Factor F3

F3A – Chargeable Accidents F3A

F3B – Violation Definitions F3B

F3C – Accident Forgiveness F3C

F4. Tier Factor F4

F5. Territory Factor F5

F6. Vehicle Discount Factor F6

F6A – New-to-Liberty Vehicle Discount F6A

F6B – Vehicle Safety Discount F6B

F6C – Hybrid Vehicle Discount F6C

F6D – Low Mileage Discount F6D

F6E – Right Track Discount F6E

F7. Policy Discount Factor F7

F7A – Paid-in-Full Discount F7A

F7B – Electronic Funds Transfer (EFT) Discount F7B

F7C – Payroll Deduction Discount F7C

F7D – Early Shopper Discount F7D

F7E – Longevity Factor F7E

F7F – Newlywed Discount F7F

F7G – New Teen Driver Discount F7G

F7H – Newly Independent Discount F7H

F7I – New Move Discount F7I

F7J – Multi-Policy Discount F7J

F7K – Paperless Policy Discount F7K

F8. Limit & Deductible Factor F8

F9. Certified Risks (Financial Responsibility Laws) F9

F10. Cycle Guard F10

F11. Fixed Expense F11

F12. Taxes and Surcharges F12

SECTION TC – Trailer and Camper Coverage and Rating TC

TC1. Liability Insurance TC1



SECTION A – INDEX PAGE

Version Effective Date 1.00 2/20/2012

1.01 6/17/2013

1.02 12/19/2013

1.03 2/20/2014

1.04 11/17/2014



Premium Determination – Household Composition Factor


Factor BI PD MP Comp Coll UM UIM FE

Number of Operators Multi-Car Discount x x x x x x x x

Minimum Age x x x x x x x x Maximum Age x x x x x x x x

Minimum Years Licensed x x x x x x x x Number of Operators &

Number of Vehicles x x x x x x x x


= = = = = = = =

Premium Determination – Final Vehicle Factor

Final Vehicle Factor Factor


Vehicle Factor

Vehicle Discount Factor x x x x x x x x

Final Vehicle Factor = = = = = = = =

Vehicle Discount Factor Factor

BI PD MP Comp Coll UM UIM FE New-to-Liberty

Hybrid x x x x x x x x Vehicle Safety x x x x x x x x

Low Mileage Discount Group x x x x x x x x Right Track Discount Group x x x x x x x x

Vehicle Discount Factor = = = = = = = =

Vehicle Factor Factor

BI PD MP Comp Coll UM UIM FE VIN Factor Ownership x x x x x x x x

Annual Mileage x x x x x x x x Usage x x x x x x x x

Purchased New/Used x x x x x x x x Coverage Combination x x x x x x x x

Vehicle Factor = = = = = = = =

Objection 1: Please explain in further detail what the right track discount and low mileage discount programs are for. Do you look at speed? is GPS involved? Do you have the capability of using this during the investigation of a claim. Do you look at hard braking? Is the low mileage discount for those who travel low miles such as under 10K. Do you lose the discount if you go above 10k? Response 1: RightTrack and Low Mileage Discount are telematics programs which offer a discount to customers based on how they drive. The customer can optionally enroll into these mutually exclusive telematics programs to receive an upfront discount of 5% and a potential for up to 30% for RightTrack or up to 15% sfor Low Mileage Discount based on our evaluation of the driving behaviors over a 90 day review period. Participation is free to the customer. The data that Liberty Mutual collects shall not affect policy cancellation, non‐ renewal, or a claim. Today, RightTrack is enabled by a self‐install OBD‐II device. The RightTrack discount is based on mileage,

time of day, rapid acceleration and hard braking behaviors. Speed is not used to determine a discount.

We collect GPS location in order to determine the time zone where the vehicle is driven.

Low Mileage Discount is enabled by an active OnStar subscription. The Low Mileage Discount is based on

mileage data only and no other data is collected. Low Mileage discount is available to all vehicles which

have an active OnStar subscription. There are no mileage requirements for this program and anyone

who is eligible to participate and completes the 90 day review period will receive at least a 5% discount.

Objection 2: We need more detail as to what you are doing. What information did you use to determine the right track group levels and low mileage group levels? What information did you use to determine the factors for each low mileage group level and for each right track group factor? Did you look at any studies? Response 2: The RightTrack Groups are determined by the mileage, time of day, rapid acceleration and hard braking driving behavior collected by the device. Each driving behavior component (mileage, time of day, rapid acceleration and hard braking) receives a factor that is based on a combination of verified mileage data analysis, research of driving behavior data and competitive positioning. These factors determine a final discount factor which ranges from 5% to 30%. This range of discounts was selected to make the program marketable and competitive. Several other insurance carriers use similar range of discounts in comparable usage‐based insurance programs. We have reviewed several industry studies showing that drivers who participate in a program like this and agree to share their driving data are considerably safer than average due to a combination of favorable self‐selection, behavior change, and improved risk segmentation. In addition, other insurance carriers have filed and implemented similar programs in the state.

Low Mileage Discount is a telematics program which offers a discount to customers based on how much they drive. The Low Mileage Groups are determined by annualized mileage. Each annualized mileage receives a factor that is based on a combination of verified mileage data analysis and competitive positioning. These factors determine a final discount which ranges from 5% to 15%. This range of discounts was selected to make the program marketable and competitive. Several other insurance carriers use similar range of discounts in comparable usage‐based insurance programs. We are happy to provide additional details upon request.

Filing at a Glance - ambest.com · Objection Letter Objection Letter Status Additional Information...

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Transcript of Filing at a Glance - ambest.com · Objection Letter Objection Letter Status Additional Information...