1. Forms
2. MM
3. MM-25-02

What the form is

The MM 25 02, titled "Auto Dealers Declarations - MA," is a crucial component of an auto dealer's insurance policy in Massachusetts. As a declarations page, it doesn't provide coverage itself but rather personalizes the policy by summarizing the specific choices made by the insured. This includes listing the named insured, policy period, coverages selected, applicable limits of insurance, deductibles, covered autos, and premium information. It works in conjunction with the Auto Dealers Coverage Form (e.g., CA 00 25) and other applicable endorsements to form the complete insurance contract.

Classes of business it applies to

This form is specifically designed for automobile dealers operating in Massachusetts. This includes businesses that buy, sell, service, or repair automobiles. Real-world examples include:

• New and used car dealerships
• Motorcycle dealerships
• RV dealerships
• Auto repair shops with dealer operations
• Service stations that also sell vehicles

Special considerations

Given that this is a Massachusetts-specific form, it incorporates state-mandated coverages and requirements applicable to auto dealers. It's essential to use the correct edition date of this form as specified by regulatory bodies or the insurer. Agents must ensure that all information on the declarations page is accurate and reflects the agreement between the insurer and the insured, as this document is a primary reference point in the event of a claim. For risks subject to the Compulsory Automobile Insurance Law in Massachusetts, specific endorsements like the Auto Dealers MA Mandatory Endorsement (MM 25 01) or the general Massachusetts Mandatory Endorsement (MM 99 11) must be issued.

Key information for agents and underwriters

For Agents:

• Verify that all named insureds, locations, and operations are correctly listed.
• Ensure that the covered auto symbols accurately reflect the intended scope of coverage for the dealership's diverse auto exposures (e.g., owned autos, non-owned autos used in garage operations, autos held for sale).
• Confirm that limits for compulsory coverages meet or exceed Massachusetts requirements.
• Clearly explain all selected coverages, limits, and deductibles to the insured.

For Underwriters:

• The information on the MM 25 02 is critical for assessing the risk profile of the auto dealership.
• Pay close attention to the types and number of vehicles, the nature of garage operations (e.g., repair, service, sales), and the selected liability limits.
• Ensure that the premiums calculated are appropriate for the exposures declared on this form.
• Cross-reference the information with the application and other supporting documents to ensure consistency and identify any potential moral or physical hazards.
• Confirm that all Massachusetts-specific requirements and related endorsements are correctly applied.