1. Forms
2. MM
3. MM-99-11

What the form is

The MM 99 11, titled MASSACHUSETTS MANDATORY ENDORSEMENT, is a required endorsement that modifies standard commercial automobile insurance policies to ensure they conform with Massachusetts state laws and regulations. Its primary function is to amend policy provisions to reflect specific legal requirements within Massachusetts, particularly those related to compulsory auto insurance. This endorsement takes precedence over conflicting provisions in the underlying policy.

Classes of business it applies to

This endorsement applies to virtually all commercial auto policies written in Massachusetts for risks subject to the state's Compulsory Automobile Insurance Law. This includes, but is not limited to:

• Businesses that own, lease, or operate vehicles in Massachusetts.
• Truckers and motor carriers operating within or through the state.
• Any entity utilizing a standard Business Auto Coverage Form (like CA 00 01) for vehicles registered or principally garaged in Massachusetts.

Real-world example: A local plumbing company in Boston that owns a fleet of vans used for service calls would need the MM 99 11 endorsement attached to their commercial auto policy.

Special considerations

The MM 99 11 is crucial for compliance with Massachusetts law. Key considerations include:

• Compulsory Coverages: It ensures the policy provides the mandatory coverages required by Massachusetts law, such as Personal Injury Protection (PIP) at specified limits.
• Cancellation and Nonrenewal: The endorsement outlines specific conditions and procedures for policy cancellation and nonrenewal, which must adhere to Massachusetts statutes. For instance, it details permissible reasons for cancellation by the insurer, such as non-payment of premium, fraud, or suspension/revocation of a driver's license or auto registration.
• Actual Cash Value (ACV): The 10 11 edition of the form added language regarding the determination of actual cash value, aligning with specific state regulations (211 CMR 133.05(1)) and Division of Insurance bulletins.
• Concealment, Misrepresentation, or Fraud: It modifies the policy's provisions related to concealment, misrepresentation, or fraud to align with Massachusetts requirements.
• Supersedes Other Forms: The MM 99 11 10 11 supersedes the MM 99 11 09 02 edition.

Real-world example: If an insured's driver's license is revoked during the policy period, the MM 99 11 provides the insurer with specific grounds and procedures for cancelling the policy or suspending coverage for that driver in accordance with Massachusetts law.

Key information for agents and underwriters

Agents and underwriters must be thoroughly familiar with the MM 99 11 to ensure policies issued in Massachusetts are compliant.

• Mandatory Use: This is not an optional endorsement; it must be attached when insuring risks subject to the Massachusetts Compulsory Automobile Insurance Law.
• Impact on Policy Terms: Underwriters need to understand how this endorsement alters standard policy language, particularly concerning liability limits for compulsory coverages, PIP benefits, and uninsured/underinsured motorist provisions as they interact with Massachusetts law.
• Pricing and Risk Assessment: While the endorsement itself ensures compliance, the underlying coverages it modifies (like compulsory PIP) have specific rating and risk assessment implications in Massachusetts.
• Compliance: Failure to use this endorsement correctly can lead to regulatory penalties, coverage gaps, and disputes. Agents should verify its inclusion and explain its implications to insureds.
• Edition Dates: Always ensure the latest approved edition of the form is used. The MM 99 11 10 11 replaced the MM 99 11 09 02 to incorporate updates like the ACV determination language.