1. Forms
2. MM
3. MM-25-01

What the form is

The MM 25 01 - Auto Dealers MA Mandatory Endorsement is a crucial endorsement used in Massachusetts to bring the Auto Dealers Coverage Form (CA 00 25) into compliance with the state's Compulsory Automobile Insurance Law. Its primary function is to add or modify coverage provisions to ensure that auto dealerships meet the minimum insurance requirements mandated by Massachusetts law for vehicles they own or use in their business.

Classes of business it applies to

This endorsement specifically applies to auto dealers operating in Massachusetts. This includes businesses involved in selling, servicing, or repairing automobiles that are required to carry compulsory auto insurance. For example:

• New and used car dealerships
• Motorcycle dealerships
• Truck dealerships
• Businesses with dealer plates that require coverage under the compulsory law

Special considerations

The MM 25 01 is a mandatory endorsement for auto dealers in Massachusetts whose risks are subject to the Compulsory Automobile Insurance Law. It ensures that the policy provides the legally required coverages, such as Compulsory Bodily Injury Liability, Personal Injury Protection (PIP), and Property Damage Liability at the statutory minimum limits. Failure to attach this endorsement when required could lead to non-compliance with state law, potentially resulting in fines, penalties, or coverage disputes in the event of a claim.

It's important to distinguish this from situations where risks are not subject to the compulsory law, in which case other endorsements like the MM 99 35 (Personal Injury Protection Coverage – MA) and MM 99 67 (Massachusetts Changes Endorsement) might be used instead.

Key information for agents and underwriters

For Agents:

• Ensure this endorsement is always attached to an Auto Dealers Coverage Form (CA 00 25) for eligible auto dealer risks in Massachusetts to meet compulsory insurance requirements.
• Verify that the underlying policy limits meet or exceed the current Massachusetts compulsory limits.
• Educate clients on the importance of this mandatory coverage and the implications of non-compliance.

For Underwriters:

• Confirm the applicability of this endorsement based on the auto dealer's operations and location in Massachusetts.
• Risk assessment should consider the specific exposures of auto dealers, including test drives, loaner vehicles, and inventory coverage, ensuring the compulsory requirements are adequately addressed by this endorsement in conjunction with the base policy.
• Be aware of any updates to Massachusetts compulsory insurance laws that might affect the provisions of this endorsement or require new editions. The most recent edition noted is 03 24.