Archive for the ‘Massachusets Division of Insurance’ Category
Massachusetts rejects health care hikes
Posted by Ryan in Consumer Advocacy, Legislation, Massachusets Division of Insurance on April 8th, 2010
The state Division of Insurance denied 235 of 274 increases proposed by insurers. The requested premium increases were for plans covering individuals and small businesses.
The denial of the insurers proposal marks the first time the state has turned down health premium increases.
Jay McQuaide, vice president of the state’s largest health insurer, Blue Cross and Blue Shield released this statement,
“We share the concern about rising health costs, but we don’t think government price controls will solve the problem”
Insurance Commissioner Joseph G. Murphy found that most of the base rates proposed by state health plans were “unreasonable relative to the benefits provided,” according to a statement issued by the agency.
Further information on this story can be found in the original article in the Boston Globe.
Massachusetts Division of Insurance Issues Warning
Posted by Cassandra in Massachusets Division of Insurance, Massachusetts Insurance Agents on March 18th, 2010
The Massachusetts Division of Insurance has issued an official warning to all auto dealers in the state. Salespersons are told to watch what they say and do regarding auto insurance while selling a vehicle. Joseph Murphy, the Massachusetts Commissioner of Insurance, published a letter addressed to all auto dealers and salespersons on the Consumer Affairs and Business Regulation website.
Murphy states numerous reports have been filed with the Division of Insurance that certain motor vehicle salespersons are giving recommendations about particular insurance companies and assisting customers in purchasing their auto insurance. He warns that only licensed insurance producers are given the authority to sell or attempt to sell, negotiate or solicit insurance, including motor vehicle insurance. The letter stated:
This Bulletin reminds insurance companies and those individuals involved in the sale, finance, registration or insurance of motor vehicles of the Massachusetts rules about placing insurance on motor vehicles. These rules reflect the longstanding principle that only those who have demonstrated knowledge and competence about motor vehicle insurance by obtaining an insurance license from the Division are permitted to advise consumers about the purchase of such coverage.
The posted bulletin gives these five specific examples of what an auto salesperson may not do while selling a motor vehicle:
Example 1: A motor vehicle salesperson advises a customer that he could save money by buying his motor vehicle insurance from The XYZ Insurance Company. The salesperson is improperly “soliciting” motor vehicle insurance because she is recommending or urging a person to apply for a motor vehicle insurance policy from a particular company.
Example 2: A motor vehicle salesperson assists the customer to obtain insurance online by using his office computer to search for motor vehicle insurance for the customer while the customer watches. The salesperson is violating Massachusetts insurance law because he is “negotiating” motor vehicle insurance for the customer by assisting the customer to “obtain” it.
Example 3: A motor vehicle salesperson offers her customer the use of a computer at the motor vehicle dealership so that the customer can search for motor vehicle insurance, but the computer is preset to the website of a particular insurance company. The salesperson is improperly “soliciting” motor vehicle insurance because she is asking or urging a person to apply for insurance from a particular company.
Example 4. A motor vehicle salesperson who is arranging financing for the purchase of a motor vehicle tells his customer that she must purchase insurance from a particular insurance company. The salesperson is violating Massachusetts law because he is making financing contingent on purchasing insurance from a particular insurance company. G.L. c. 175, § 193E.
Example 5: The motor vehicle dealership maintains a computer terminal linked to the internet for the use of its customers. A customer may use the terminal to search for insurance as long as the salesperson does not operate the computer, the computer is not preset to any particular insurance company’s website, and the salesperson does not recommend that the customer apply for motor vehicle insurance from a particular company. The salesperson may suggest that the customer start her search for motor vehicle insurance by visiting a site that provides general advice on the purchase of such insurance. A salesperson may always refer her customer to The Division’s website, www.mass.gov/doi for such information.
This is a firm reminder not only to auto salespersons, but consumers as well. Only a licensed agent holds the knowledge necessary for insuring you with appropriate limits. The deregulation of the auto insurance market has given consumers the option to compare quotes and find the best price, not to be bullied into signing with one insurance carrier or another. For a free quote call MassDrive where a friendly representative will compare quotes from different carriers for you!
To read Joseph Murphy’s letter regarding the involvement of motor vehicle salespeople in the solicitation, negotiation or sale of motor vehicle insurance please access the Consumer Affairs and Business Regulation website here.
Murphy New Insurance Commissioner
Posted by Cassandra in Massachusets Division of Insurance on February 10th, 2010
Joseph Murphy has been named the new Commissioner of the Massachusetts Division of Insurance. He has acted as commissioner since September 2009 after Nonnie Burnes resigned from the position. Serving as first deputy of commissions since 2006 he has played an active role in the transition to managed competition. However this is not his only qualifying position, Murphy has also served as: chief of staff and research director of the Joint Committee of Financial Services and the Joint Committee on Insurance in the Massachusetts legislature.
Murphy Massachusetts Governor Deval Patrick appointed Murphy to the position. Deval publicly recognized Murphy for his outstanding role in the administration’s auto insurance deregulation and day to day operation of the division including its 130 employees and $12 million budget since Burne’s resignation.
“Joe deserves a significant amount of credit for the success of managed competition and is a leader in our efforts to stabilize health insurance costs for small businesses. He has a keen understanding of the issues that matter to consumers and insurers alike, and will use his knowledge and experience to help us move forward on auto insurance reform, health care cost containment and a host of other initiatives.”
Comparing Quotes in Massachusetts
Posted by Cassandra in MassDriver.org, Massachusets Division of Insurance, Massachusetts Insurance Agents, Massachusetts Auto Insurance Rates, Saving Money On Auto Insurance on December 30th, 2009
Auto insurance is mandatory to drive a vehicle in Massachusetts, and with good reason. Auto insurance will help pay the cost of damages to another person’s auto or property, your own vehicle, even your passengers medical bills depending on the types of coverages purchased. Although the benefits of insurance are obvious, choosing the right carrier is more difficult.
Talk to your friends, family, and co-workers about their auto insurance. Ask if they have any tips from their experience comparing quotes or have anything to say about their current carrier. Also be sure to take a look at any insurance carrier through the Better Business Bureau and National Association of Insurance Commissioners websites. Read up on the number and severity of complaints made against any auto insurance company you may be considering. Signing a policy with an company that consistently has bad reviews and serious complaints may not be in your best interest.
Try shopping online, finding and comparing quotes may be easier than you believe. After the Massachusetts auto market was deregulated many drivers have stayed with their previous insurer. A great way to save money is to compare quotes from different insurance companies.When comparing these quotes however make sure you’re comparing apples to apples. The Massachusetts Division of Insurance warns drivers:
When comparing quotes, keep in mind that coverages, limits, deductibles, and discounts have big effects on prices. A small difference in even one of these areas can make a bad quote look like a good one.
An even easier way of comparing auto insurance quotes is through a auto insurance broker. A broker represents you, helping drivers compare and find the most affordable plan. Brokers can look over insurance quotes and explain the benefits and differences between them. When shopping around give MassDrive a call. Your insurance shopping experience will be breeze when someone who knows the ins and outs of auto insurance compares the quotes for you.
Divison of Insurance… What Does it Do?
Posted by Cassandra in Massachusets Division of Insurance, Massachusetts Insurance Agents on December 3rd, 2009
The Massachusetts Division of Insurance serves the people of Massachusetts and the insurance carriers. The DOI Mission Statement states it’s primary mission is to overlook the solvency of it’s licensees to create and maintain a productive and willing market for insurance consumers. It also includes the following:
“Protection of consumer interests is of prime importance to the Division and is safeguarded by providing accurate and unbiased information so consumers may make informed decisions and by intervening on behalf of consumers who believe they have been victimized by unfair business practices.”
The mission statement exposes what the Division of Insurance is all about, but what exactly does it do? Take a look at the following, listed on the DOI website, to get a better idea:
- License Insurance Companies: The DOI processes the license of each insurance insurance carrier to ensure only financially stable insurance companies receive and maintain a license to sell insurance.
- Examine the Financial Stability of Insurance Companies: Monitoring insurance carriers through quarterly financial reviews the DOI looks for signs of financial instability. When financial worries arise the DOI will regulate the actions of the company to prevent insolvency.
- Examine the Conduct of Insurance Companies: The Division will go further than finances, it also examines an insurance company’s customer relations. Examining everything from a company’s underwriting and rating procedures to renewals and claims the DOI looks to make sure the consumers are treated fairly.
- Regulates forms, rates, and programs: Through regulating the forms, rates, and programs of each insurance company the DOI ensures products sold by each company follow Massachusetts laws and regulations
- Provides license for producers and others involved w/ insurance: The Division provides insurance license for producers and others involved in the insurance industry. This ensures that a license will only be given to someone who is qualifies and will abide by Massachusetts laws.
- Accepts Insurance Complaints: The Division of Insurance also accepts complaints against an insurer, producer/ agent, or appraiser involved in the insurance business. The Division will give each complaint a reply and/ or resolution explaining and coinciding with Massachusetts laws and regulations.
Managed Compeition… Success.
Posted by Cassandra in Competition, Consumer Advocacy, Legislation, Massachusets Division of Insurance, Massachusetts Auto Insurance Rates on October 9th, 2009
April 1st 2008 Massachusetts let the auto insurance industry loose. Shifting from state regulated rates to a managed competition many changes were brought to the Massachusetts auto insurance industry and consumers.
A study by the Department of Insurance analyzing this change included: a preliminary survey of 1,100 consumers, a comprehensive 30-minute survey of more than 4,500 drivers and one-on-one interviews with over 50 insurance agents and executives. This study has shown the overall shift to managed competition to be a positive step for the average Massachusetts auto insurance consumer.
The study showed in the first year of managed competition….
- Massachusetts drivers saved over $270 million in auto insurance premiums.
- The auto insurance premium dropped by an average of 8.2 percent.
- Nine new insurance companies entered the Massachusetts auto insurance market. These new companies entering sparked a competition among themselves, bringing lower rates and better service options to customers.
- There was a 13% decrease in the number of uninsured cars on Mass roads.
As many consumers saved bundles on affordable auto insurance rates, only three out of four consumers were aware of the insurance market change. The government realizes the lack of knowledge consumers have concerning the new auto insurance industry and hopes to educate the public with more education and outreach.
Why You Need More Than the Minimums
Posted by Cassandra in Consumer Advocacy, Legislation, Massachusets Division of Insurance, Massachusetts RMV on October 3rd, 2009
Auto insurance is anything but optional. Not only should you want to have car insurance, the sate requires drivers to purchase it. Two important coverages, among others, Massachusetts requires drivers to have are Property Damage and Liability Coverage.
Property damage covers damages the insured has caused to someone else property. Massachusetts state minimum for property damage is $5,000. This covers everything from street lamps and stop signs to other vehicles. Maybe you didn’t realize you were speeding when an oil spot sent you spinning into that Bentley… you’re still responsible for the damages and that $5,000 of coverage isn’t gong to do much. To be safe you should consider at least $100,000 of property coverage.
A second minimum coverage set by the state is Liability coverage. This includes bodily injury and property damage to others. Maybe the state minimum will cover one person in a minor accident. But what if it was more than a fender bender? Or maybe there were passangers in the car you collide with? When multiple people are involved, or even just one in a decent accident – the $40,000 minimum state coverage isn’t likely going to cover all of the hospital bills, operations, medications, and therapy your accident incurred.
If you choose to only insure yourself to the state minmums, remember you are responsible for all expenses past what your insurance covers. Find out more about Massachusetts state minimum insurance requirements on the Massachusetts Division of Insurance Webpage.
Massachusetts says auto rates reduced by 8%
Posted by Paul in Competition, Consumer Advocacy, Massachusets Division of Insurance on July 3rd, 2009
According to the Massachusetts Division of Insurance, auto insurance rates dropped 8% since competition was introduced to the state auto insurance market:
According to a state study, auto insurance rates dropped 8.2 percent from April 2008 to April 2009, compared with a 5.2 percent decline from 2006 to 2007. The state allowed insurance companies to start setting their own rates on April 1, 2008, under what officials called a “managed competition’’ plan. Previous to that, auto insurance had been highly regulated.
Great news for consumers in Massachusetts – make sure you get a competitive Massachusetts auto insurance quote, from sites like MassDrive.com, before you renew your auto insurance policy.
Testing Older Drivers
Posted by Ryan in Legislation, Massachusets Division of Insurance on June 9th, 2009
A new bill is being proposed that would require the elderly to be tested to see that they are fit to be driving. Loretta Worters, vice president of the Insurance Information Institute said that by 2030 25 percent of drivers on the road will be 65 and older.
According to the insurance institute of highway safety, the elderly have the highest rate of fatal crashes than any other group except young drivers. The new bill would require that elderly 85 and over would have to take road and vision tests before being eligible to drive.
On a local radio show last Thursday, Governor Deval Patrick, said “If it comes to me, I’ll sign it.”
It’s important to look at all affects of the bill before making your own opinion. Is it possible that seniors have just been given a bad name due to a few crashes? What kind of transportation will be available to seniors that lose their license due to the bill? Will the bill make the roads safer for everyone?
After considering both sides of the bill you will be much more qualified to speak on the topic.
Massachusetts Auto Insurance Rates Slowly Coming Down
According the Boston Globe, Massachusetts auto insurance rates are slowly lowering for many consumers.
Other companies that have recently changed their auto insurance rates, according to published reports, include Commerce Insurance Co. of Webster, which is lowering its average rate 4.5 percent; Liberty Mutual of Boston, which is raising its average rate 4 percent; and Quincy Mutual Fire Insurance Co., which is raising rates an average of 3 percent.
“After four successive years of declining rates, including last year’s 10.7 percent decrease, loss trends, expenses, and inflation dictated a need to increase rates,” said John Natale, a spokesman for Liberty Mutual, which is based in Boston.
