The Fireman’s Fund Insurance Companies has given notice to Massachusetts officials that it intends to withdraw from the state’s personal automobile insurance market on Dec. 31, 2004, because of continuing uncertainty in implementing state personal automobile insurance reform. Fireman’s Fund also stated that if the insurance reform package currently under consideration is enacted by the state, they will rescind its withdrawal action.
“Fireman’s Fund would prefer to continue serving the personal auto insurance needs of consumers in Massachusetts,” said Cynthia Tidwell, president of Personal Insurance for Fireman’s Fund, in a written statement. “However, given the current environment, we have no choice but to issue a notice of our intent to withdraw from personal auto insurance in Massachusetts. Fireman’s Fund cannot achieve necessary financial targets within the rules of the existing state personal lines auto program.”
Tidwell emphasized, “We hope Massachusetts will quickly implement its reform package which is fair to both consumers and insurers. Should that occur, Fireman’s Fund would rescind its notice of withdrawal.”
Fireman’s Fund said it had hoped to avoid filing notice of withdrawal from the state’s personal automobile market, but realized that reform measures approved this week by the Commonwealth Automobile Reinsurers have not yet been enacted, and, even if enacted, may face additional challenges. The company could not wait any longer to make a decision because regulatory deadlines require companies to file paperwork six months in advance of actual withdrawal.
Fireman’s Fund currently offers personal automobile insurance coverage to approximately 22,000 customers in Massachusetts, representing less than 1 percent of the state’s auto market. The withdrawal from personal automobile insurance will not affect any other lines of commercial or personal lines coverage offered by Fireman’s Fund in Massachusetts.
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