Pool
Carrier History
A voluntary direct assignment carrier (VDAC) is an insurer that has elected to satisfy its obligation to the Pool by receiving
direct assignments, and that has obtained prior approval from the Commissioner of Insurance authorizing such form of participation.
Any member of the Pool may apply to the Commissioner for voluntary direct assignment designation, and shall be eligible for designation as a voluntary direct assignment carrier, provided the member:
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has and maintains, at a minimum, a
Best's rating of either "A-" or NA 3 with an FPI of 8 or
9; and
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has or has had for any year during
the five year period immediately preceding the request
to be designated a voluntary direct assignment carrier a
workers' compensation voluntary market share of at least
1% in the Commonwealth of Massachusetts; and
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demonstrates to the satisfaction of
the Commissioner, taking into account whatever technical
advice may have been requested from the Bureau, that it
has the capacity to provide appropriate coverage to any
risk that may be assigned to it pursuant to this program
regardless of the size, industry type, and geographical
location of such risk; and
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has and maintains the capacity to conform to the Performance Standards applicable to servicing carriers as set forth in the Pool Plan of Operation.
A voluntary direct assignment carrier's
failure to maintain eligibility shall be considered by the
Commissioner as cause for rescinding its designation as a
voluntary direct assignment carrier. The WCRIB shall inform
the Commissioner if it believes a voluntary direct
assignment carrier may not be maintaining such eligibility.
Application to be designated a voluntary
direct assignment carrier must be submitted to the
Commissioner of Insurance prior to October 1. If the
application is approved, the member will be designated a
voluntary direct assignment carrier effective January 1st of
the following year. The member shall continue as a voluntary
direct assignment carrier for subsequent years, unless the
member gives the Commissioner advance written notice of its
intention to resign as a voluntary direct assignment carrier
prior to October 1st of a given year, or unless such
designation is rescinded by the Commissioner for cause.
For more information on the Voluntary
Direct Assignment Program, refer to the
Massachusetts Workers' Compensation Voluntary Direct
Assignment Program page in the Residual Market section
of our web site.
Voluntary direct assignment carriers do
not receive a servicing carrier fee.