The Commerce Group Inc. announced that it had entered into an agreement with Berkshire Mutual Insurance Co. to transfer Berkshire’s Massachusetts personal automobile business to its Mass. subsidiary, Commerce Insurance (CI), effective January 1, 2002.
Under terms of the agreement, CI will offer agency contracts to independent agencies that represent Berkshire for personal automobile insurance in the State, which will allow them to offer CI policies to their current Berkshire customers.
Commerce will assume all of Berkshire’s obligations for future policy years beyond 2001 under the Massachusetts residual market system, commonly known as C.A.R. (Commonwealth Automobile Reinsurers), and will receive $7 million from Berkshire as consideration in early January, 2002.
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