Change Proposed in State Auto Insurance Industry
Today lawmakers in Massachusetts, including the state insurance commissioner, will begin to debate a plan to bring competition into the state’s auto insurance industry.
Massachusetts is the only state in where the auto insurance rates are set by regulators. The new proposal would still give the state firm regulatory control, yet more competition would be allowed. Insurance companies would still be required to get rate approval from the state. The insurance commissioner has said she is in favor of partial deregulation of the state's auto insurance industry.
However, not all are in agreement about the potential deregulation. Some have expressed concern about excessively high rates being charged in certain areas where discriminatory practices are said to be carried out by some insurers, with premiums based on a customer's education or occupation.
If approved, new insurance rates would be implemented next April and would not require legislative approval.
Published on August 13, 2007
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