MASS. MOVES AUTO DATE:

Massachusetts Gov. Mitt Romney has signed into law a bill changing from January 1 to April 1 the date that annual private passenger auto insurance rates take effect. The measure had been backed by the Massachusetts Association of Insurance Agents (MAIA) to reduce costs and confusion surrounding the annual change in rates. The insurance commissioner typically does not announce rates until the December 15 deadline. This law change gives insurance companies and consumers a longer period of time between approval of the rates and their effective date. In other action, lawmakers approved HB 4485, a bill that irequires insurers to check with the Department of Revenue to see if a claimant owes past-due taxes prior to making any nonrecurring payment in excess of $500. This bill is similar to an existing law requiring insurers to check for past due child support before claims are paid. Insurers opposed the measure due to the additional administrative burden.

Topics Auto