Archive for the ‘Massachusetts Insurance Agents’ Category
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.
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.
Allstate returns after deregulation
Posted by Ryan in Massachusetts Insurance Agents on May 28th, 2009
For decades, Massachusetts was one of the few states that still operated their insurance market under strict regulations. These regulations forced all providers to offer the same product, essentially eliminating all competition between companies.
On April 1, 2008 the whole playing field changed when deregulation of policy prices was set in place. Since then, big things have been happening. With the return of Allstate to the Massachusetts auto marketgenerates some serious competition now.
This puts the consumer at an advantage because discounted rates are now given out to good drivers. The only problem is that it takes more work on the consumer’s part to compare all of the rates. At least that’s what the problem used to be; now you can compare the most affordable Masachusetts auto insurance policies!
New insurance rules putting agents out of work?
Posted by RossieReader in Competition, Legislation, Massachusets Division of Insurance, Massachusetts Insurance Agents on March 12th, 2009
The Boston Globe is reporting on the frustration of agents who specialize in high-risk drivers over the new rules effective April 1 which will, they say, cost them their jobs. The agents also fear that the new rules will leave many drivers without coverage. Insurance Commissioner Burnes countered with graphical evidence that there was a distribution of agents across the state who are not being picked up by insurance companies.
Lawmakers working to preserve Massachusetts Auto Appeals Board
Posted by Paul in Consumer Advocacy, Legislation, MassDriver.org, Massachusetts Insurance Agents on February 16th, 2009
WBZ is covering updates on bills introduced on Beacon Hill to save the Massachusetts Auto Appeals Board. A new hook? The existence of the board generates about $2.5M in revenue for the commonwealth of Massachusetts in fees:
Proponents of the current appeals process say it saves drivers about $25 million a year because 45 percent to 50 percent of them win their appeals; and the $50 fee they pay gives the state $2.5 million a year in revenue.
WBZ also has some video on this subject. To view it, click here.
MassDrive.org has covered the elimination of the Massachusetts Auto Appeals Board in past posts.
Massachusetts Auto Insurance Appeals Board To Be Shuttered
Posted by Paul in Consumer Advocacy, Electric Insurance News, Legislation, Massachusets Division of Insurance, Massachusetts Insurance Agents, Progressive Insurance News, Traveler's Insurance News, Video on January 28th, 2009
NECN delivers a very important story for Massachusetts auto insurance consumers – if your insurance company raises your rates because of an accident and you think it’s unfair, you won’t be able to appeal it to the commonwealth beginning on April 1. Check out NECN’s reporting:
Here is a key point explained by NECN:
If you feel unfairly surcharged by your insurer, you can dump them and get a new insurer.
Massachusetts: Not your grandfather’s auto insurance market
Posted by Paul in Competition, Massachusetts Insurance Agents on January 17th, 2009
The Metro Daily News captured a great quote from Frank Mancini, president and CEO of the Massachusetts Association of Insurance Agents, regarding the introduction of competition to the Massachusetts auto insurance market:
“It’s a big change for everyone. We’ve had the same insurance system since the 1920s.”
An important point to remember; indeed, Massachusetts has embarked on an extremely large change and as a result, time will be needed to perfect the new system.
Newcomers versus legacy carriers in Massachusetts auto insurance marketplace
Posted by Paul in Competition, Legislation, Massachusetts Insurance Agents on December 5th, 2008
Competition has certainly changed the playing field in the world of Massachusetts Auto Insurance. Although insurance agents continue to provide value to consumers, the increased competition is not desirable for Massachusetts insurance agents because it will change the playing field dramatically for Massachusetts Auto Insurance. One situation with a group of Massachusetts Auto Insurance agents and Massachusetts Insurance Commissioner Nonnie S. Burnes, alleges preferential treatment for newcomers to the Massachusetts Auto Insurance marketplace.
‘You’re Entering Massachusetts,’ Progressive
Posted by Paul in Competition, Massachusetts Insurance Agents, Massachusetts Auto Insurance Rates, Progressive Insurance News on March 1st, 2008
Progressive Auto Insurance is now available for Massachusetts Car Insurance buyers, due to the introduction of competition by the Commonwealth of Massachusetts. According to this article in the Insurance Journal, Progressive is selling its services both directly to consumers and through agents. According to Cathy Wilton-Bransch, a spokesperson for Progressive:
“We appreciate the work the [Massachusetts Division of Insurance] has done to create a regulatory environment that allows companies to compete for customers. We hope that come May 1, drivers will check out progressive.com and see what we have to offer.”
In a related point, The Insurance Journal notes that Liberty Mutual insurance company plans to return to Massachusetts, as a result of deregulation of the insurance market in Massachusetts.
