The road to managed competition in Mass. auto insurance

The plan calls for a one-year transition from April 1, 2008, through March 31, 2009. It also:

Prohibits rating on the basis of sex, marital status, race, creed, national origin, religion, occupation, income, education, homeownership, credit information or age, except to produce the reduction in rates for drivers age 65 years or older as required by law.

Prohibits underwriting on the basis of sex, marital status, race, creed, national origin, religion, age, occupation, income, principal place of garaging of the vehicle, education, homeownership and credit information.

Prohibits insurers from using drivers’ accidents or violations that are more than six years old to raise premiums.

Preserves existing subsidies across territories to protect urban drivers in the transition year.

Requires companies to describe the overall percentage change from the 2007 premium on certain policies to facilitate competitive shopping by consumers.

Mandates companies provide coverage and price information on their Web sites or by telephone.

Establishes procedures for the commissioner to disapprove rates.

Key dates:

Oct. 22, 2007: Auto Insurers Bureau’s (the industry’s rating agency) transitional advisory filing due.

Oct. 24, 2007: Residual market transition rate filing due.

Nov. 19, 2007: All voluntary market transition rate filings for
policies between April 1 and April 30, 2008, due.

Feb. 15, 2008: Any company issuing policies on or after May 1, 2008, may make a voluntary market transition rate filing any time after this date.