Commerce, AAA in Mass. Extend Sales Partnership with 20-Year Pact

December 14, 2006

The Commerce Insurance Co. has entered into a long-term marketing agreement with AAA Southern New England that extends the two organizations’ business partnership in selling to auto insurance in Massachusetts to a minimum of 20 years, enhancing a successful relationship that Commerce Insurance and AAA SNE have enjoyed for many years.

Under the terms of the agreement, which may extend beyond the initial 20 year term, Commerce Insurance will act as the exclusive underwriter for the AAA Group Marketing Program. For the duration of the agreement, Commerce Insurance will enjoy the exclusive right to sell AAA-branded automobile insurance products and the exclusive use of the AAA Emblem for the purpose of marketing its automobile insurance products in AAA SNE’s Massachusetts operating territory.

Beyond Massachusetts, AAA SNE and Commerce Group jointly own American Commerce Insurance Co., which writes similar programs in 10 other states throughout the country, primarily through relationships with other AAA organizations.

AAA SNE has been an agent of Commerce Insurance since 1984 and the two organizations have sponsored an affinity discount marketing program to AAA members in Massachusetts since 1995. Members currently receive a discount of five percent on their Massachusetts automobile insurance premiums written through the program. The program insures more than 500,000 policyholders in Massachusetts of the more than 1.2 million AAA member households in the state. The program is marketed through independent agents who represent Commerce Insurance in Massachusetts, including AAA owned agencies.

Source: The Commerce Group, Inc.

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