Progressive Insurance is making the intellectual property it owns available to companies interested in implementing usage-based insurance (UBI) programs under a new licensing program.
Progressive said licensing may be available for UBI programs under the following terms:
Term of Agreement: Commences the date license is executed through April 2022Waiting Period: Licensees will not rate insurance based on its customers’ driving habits prior to April 1, 2015Licensing Fee: Annual royalty payment equal to licensee’s countrywide Private Passenger Auto insurance direct written premiums for the most recently reported year, multiplied by two basis points (0.02 percent)Progressive also has the right to licensor recognitionApplication for Licensing under these terms is open through June 2013, with payments commencing with usage on or after April, 2015.
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