AIPSO functions primarily as the service provider for the automobile insurance residual market (the market of last resort) in the U.S., managing Commercial Automobile Insurance Procedures (CAIPs) and various state Joint Underwriting Associations (JUAs).
Because AIPSO services the residual market, its “appetite” is generally defined by taking on risks that standard insurance companies have declined, with a focus on commercial auto compliance and mandatory, high-risk coverage.
AIPSO Trucking Program Appetite
AIPSO provides insurance for commercial risks, including trucking and motor carriers, that are unable to secure coverage in the voluntary market.
- Core Offerings: Commercial Auto Liability, and in some jurisdictions, physical damage, though this varies by plan.
- Risk Type: High-risk, hard-to-place, or new venture trucking operations.
- Coverage Structure: Focuses on mandatory state filings and required minimum liability coverage.
- Excluded/Limited Coverages: In specific plans (e.g., California Low Cost), comprehensive and collision (physical damage) may not be available.
Ideal Customer Profile (ICP)
The ideal customer for the AIPSO trucking program is a commercial operator who has been denied coverage elsewhere and requires mandated insurance to continue operations.
- Commercial Drivers/Fleets: Truckers, owner-operators, or small-to-mid-sized fleets.
- High-Risk Profiles: Entities with poor loss history, new authority (newly formed trucking companies), or those operating in specialized/hazardous industries that standard carriers avoid.
- Compliance Need: Those requiring mandatory filings (e.g., MCS-90) to operate.
- Good Driver (Optional): In some programs like the California Low-Cost Auto program, they must still meet “good driver” requirements (good driving record) despite being in the assigned risk pool.
Key Considerations
- Not a Standard Market: This is not a voluntary, competitive market, but rather a “last resort” mechanism.
- Policyholder Services: AIPSO acts as the administrator for these assigned policies, handling applications, and servicing.
- Availability: Program availability is specific to each state’s laws and plan regulations.
Note: For high-quality, preferred fleets, insurers like AIG Canada (not related to AIPSO) offer separate specialized transportation programs.
