HIGH RISK CHALLENGE IN COURT:

Massachusetts insurance company trade associations and companies recently filed a friend of the court brief defending the reforms of the state’s auto insurance system pursued by Insurance Commissioner Julianne Bowler, which are being challenged in a lawsuit before the Massachusetts Superior Court.

On Dec. 31, 2004, Bowler issued rules changing the auto insurance high risk pool. The changes have been challenged in court by the state’s largest auto insurance writer, Commerce Insurance Company, and others. In February, a Superior Court judge issued an order staying the effectiveness of the new rules as a result of the Commerce challenge.

“These reforms are an essential start in reforming the entire market which is in crisis,” said Paul Moran, AIA vice president, northeast region. “The current system offers consumers few choices because the Massachusetts market has driven away many insurers.”
Together, the insurance companies participating in the brief write approximately 55 percent of the private passenger auto insurance business in Massachusetts.

Topics Massachusetts