What it does
MM 20 25 addresses Massachusetts leasing arrangements where the registered owner of the vehicle is not the party buying the insurance. CAR's rules (Rule 120) require:
- If the actual owner is other than the leasing company and the leasing company obtains the insurance, the policy is issued to the leasing company as named insured and the Additional Insured – Owner of Leased Vehicle Endorsement MM 20 25 must be part of the policy.
- If the actual owner is other than the leasing company and the ultimate lessee obtains the insurance, the policy is issued to the lessee with both MM 20 25 and MM 20 26.
The current edition is 10 13.
Who needs it
Massachusetts leasing and rental concerns, and lessees of vehicles titled to a bank or trust rather than to the leasing company.
Quoting notes
The Registry requires registration in the actual owner's name, so compare the registration with the lease to identify the owner. CAR's rating rule increases liability rates by a factor of 1.04 when the owner of a hired auto is added as an additional insured.
