1. Forms
2. MM
3. MM-00-97

What the form is

The MM 00 97, titled Massachusetts Business Auto Declarations, is a crucial component of a commercial automobile insurance policy in the state of Massachusetts. It is not a standalone coverage form but rather a document that personalizes and specifies the details of the insurance agreement. This form works in conjunction with a standard coverage form, such as the Business Auto Coverage Form (CA 00 01), by outlining the unique aspects of the policy agreed upon by the insurer and the named insured. Key information detailed on this declarations page includes the named insured's information, the policy period, a schedule of covered autos, the types and limits of coverages selected (including compulsory Massachusetts coverages), applicable deductibles, and the premium for each coverage. It also lists all endorsements attached to and forming part of the policy.

Classes of business it applies to

This form applies to virtually any business that owns, leases, or operates commercial vehicles in Massachusetts and is therefore subject to the state's compulsory auto insurance laws. Real-world examples include:

• Delivery services
• Contractors (plumbers, electricians, construction)
• Taxi and limousine services
• Trucking and transportation companies
• Any business with a fleet of vehicles used for commercial purposes within Massachusetts

Special considerations

Several special considerations are pertinent to the MM 00 97:

• Massachusetts Compulsory Insurance: This form is integral to complying with Massachusetts' Compulsory Automobile Insurance Law. It must clearly show evidence of the required coverages, such as Bodily Injury Liability (with minimum limits like $20,000 per person / $40,000 per accident), Personal Injury Protection ($8,000 per person), and Property Damage Liability (minimum $5,000).
• Integration with Other Forms: It must be used with a corresponding Business Auto Coverage Form (e.g., CA 00 01) and will reference various Massachusetts-specific endorsements (e.g., MM 99 11 Massachusetts Mandatory Endorsement) that amend the standard policy language to comply with state laws and regulations.
• Accuracy is Critical: All information, especially vehicle descriptions, VINs, coverages, limits, and named insured details, must be accurate to ensure the policy responds as expected in the event of a claim.
• Residual Market: The form is also used for policies in the Massachusetts commercial residual market (CAR - Commonwealth Automobile Reinsurers).

Key information for agents and underwriters

For insurance agents and underwriters, the MM 00 97 is a foundational document:

• Agents: Must meticulously gather and record all necessary information from the insured to accurately complete the declarations. This includes verifying vehicle schedules, driver information (if applicable for rating), desired coverages and limits (while ensuring compulsory minimums are met), and any specific operational details that might affect the risk or required endorsements. Explaining the declarations clearly to the insured is also a key responsibility.
• Underwriters: Rely on the MM 00 97 to assess the risk profile of the business. They will verify that the information aligns with the underwriting guidelines, that appropriate rates and premiums are applied, and that all Massachusetts-specific legal requirements are satisfied. The schedule of autos, their usage, garaging location, and selected coverages are critical data points for risk assessment and pricing. Any unusual risks or high-limit requests will warrant closer scrutiny. They must also ensure that all necessary endorsements modifying coverage are correctly listed and attached.
• Coverage Gaps: Both agents and underwriters should be vigilant for potential coverage gaps. For instance, ensuring that symbols used to designate covered autos accurately reflect the insured's needs (e.g., Symbol 7 for specifically described autos).
• Premium Calculation: The declarations form the basis for the policy premium, detailing the cost of each selected coverage.