FIREMAN’S FUND SET TO EXIT MASS.:

October 25, 2004

Fireman’s Fund Insurance Cos. repeated its warning that it will drop out of Massachusetts’ auto insurance market because the regulatory changes it and other insurers sought have been bogged down. Fireman’s, which insures less than 1 percent of the state’s vehicles, previously dropped out of the market in 1987 but rejoined in 1990. The insurer gave notice earlier this year that it planned to withdraw unless the state significantly changes the way the burden for covering high-risk drivers is spread among insurers. The Novato, Calif.-based division of the German-based Allianz Group said it needs action by mid-November or it will move ahead with the plan to drop out at the end of the year. Gov. Mitt Romney and Insurance Commissioner Julianne Bowler have been pushing for an assigned risk plan that many insurers favor. Hearings were scheduled to resume Oct. 20. Meanwhile, 18 senators have asked Bowler to further delay action until she has a legal opinion on whether legislative action is needed to proceed.

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Insurance Journal Magazine October 25, 2004
October 25, 2004
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