Plymouth Rock's Letter to Greg

I received the following letter from the President of Plymouth Rock Assurance Corporation re: today's filing with the Division of Insurance. - Greg

Dear Greg,

Today, Plymouth Rock filed its initial rates and product enhancements to be effective with the April 1, 2008 start of managed competition. I am pleased to announce that the effective premium reduction underlying our filing is about 6%. Our pricing strategy aims to minimize market disruption, retain existing Plymouth Rock customers and attract new business. 90% of existing Plymouth Rock customers who have been insured by us for three years will see their rates go down next year, while no such insured will see an increase greater than 5%. Policyholders can save 20% or more and over one third of our policyholders will see their rates go down by 10% or more.

Plymouth Rock will introduce several product enhancements which our policyholders will find attractive. Our new OEM coverage endorsement provides, at no additional cost, Original Equipment Manufacturer parts replacement when the damaged part of a vehicle with less than 20,000 miles cannot be repaired. We will also offer a Replacement Cost endorsement for new vehicles that pays the difference between the Actual Cash Value of the auto and the cost of a new vehicle in the event of a total loss. This free endorsement will cover vehicles less than twelve months old and with less than 15,000 miles. Coverage may also be extended beyond the mileage limitation for an additional cost. When a customer buys a new car, you can assure them that Plymouth Rock is a great choice.

Two additional endorsements merit special attention. Our Deductible Dollars endorsement reduces the Collision deductible each year the policy does not have a claim. Loss-free policies will earn a deductible credit of $100 each year, to a maximum of $500 (or the total deductible if less than $500). Customers with an existing Plymouth Rock policy for at least three years and no physical damage losses will automatically have their deductible reduced by $100 on renewal as an additional incentive to remain with Plymouth Rock. For our long-standing policyholders, we will also offer, for no additional cost, Accident Forgiveness on policies in effect with Plymouth Rock more than four years in which the listed drivers are SDIP step 98 or 99. This means a surcharge will not be applied and the SDIP credit will not be lost due to one surchargeable, at-fault accident that may occur to a listed operator and vehicle. Policyholders who don’t automatically qualify for the endorsement may purchase this valuable protection for a modest premium.

In addition to our overall price reduction, we are introducing three additional discounts targeted at less experienced operators. The first is an Advanced Driver Training discount for drivers with less than six years experience who participate in a certified advanced driver training program. This discount is available for up to three years and applies to Bodily Injury, Personal Injury Protection, Property Damage and Collision coverages. Second is a Good Student discount for inexperienced operators enrolled full-time in high school or an accredited college or university. To qualify for this credit, the student must have no more than three SDIP points and maintain at least a “B” or equivalent grade average. The third discount for Students Away at School offers a discount for inexperienced operators residing at an accredited educational institution more than 100 miles from the garaging location who do not have regular access to the covered vehicle while at school.

Just as we believe we offer our customers more than just insurance, we think that competition is about more than just price. As we have done consistently for nearly twenty-five years, we will continue to lead with the strength of our outstanding Door to Door Valet Claims Servicesm and our unique True Service® Pledge. In the coming months we will be working with our agents on sales techniques that have worked well for us in New Jersey, where our company is one of only a few agency companies that are actually bigger than they were before the new national competitors entered that market. In addition, we will be adding new value added programs and providing you with new sales materials that demonstrate the value of being insured by Plymouth Rock Assurance.

The Division of Insurance will make available all company filings tomorrow. Companies may then make amendments to their initial filings by next Tuesday, November 27th. We will carefully analyze what our competitors are doing, and if necessary, may make a revised filing. If we do make additional changes to our rates or product, we will certainly let you know.

We will continue to monitor the market closely and will provide you with a competitive, innovative and service-oriented product that will enable you to grow your book of business with us. While the road ahead is filled with some degree of uncertainty, I am confident that by continuing to work together we can thrive in this new and fluid market. I would love to hear any comments or suggestions you may have.

Thank you very much for your continued support and best wishes to you, your staff and your families for a Happy Thanksgiving.

Sincerely,


Hal Belodoff