Until this year, auto insurers had their rates fixed and established by the Commissioner of Insurance. This year, the Commissioner of Insurance, for the first time in 30 years, created the new "managed competition" system. Under the new system, insurers file individual rates with the Commissioner of Insurance, which become effective unless the Commissioner disapproves them. The Attorney General retains the statutory right to trigger rate hearings on individual insurer rate filings when needed to protect the interest of consumers.
On November 14, 2007, the Attorney General's Office sent an informational bulletin (see below) to insurance companies on the state of managed competition. The bulletin raises concerns with filings recently made by the industry in the new "managed competition" process, and clarifies the factors the Attorney General's Office will be considering when reviewing voluntary market rate filings. Along with the sufficiency of the data, the office will consider loss, profit and expense provisions and the fairness of the relevant rating criteria.
Additional information bulletins have been produced and distributed by the AGO. All bulletins can be viewed here: