By Mr. Moore, a petition (accompanied by bill, Senate,
No. 615) of Richard T. Moore for legislation to promote
fair administration of auto insurance rate adjustments.
Financial Services. |
By Mr. Moore, a petition (accompanied by bill, Senate,
No. 615) of Richard T. Moore for legislation to promote
fair administration of auto insurance rate adjustments.
Financial Services. |
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Section 113B of chapter 175 of the general laws, as appearing in the 2004 Official Edition, is hereby amended by inserting at the end thereof, the following new paragraph:-
Classifications of risks and premium charges when finally fixed and established for said ensuing year and which become effective as of April 1 of the year, shall apply to any motor vehicle liability policy renewed on or after January 1 of the same year. In the event that a rate adjustment takes affect during the policy year of an insured, and is otherwise subject to the adjustment, the insured shall receive an adjustment in premium on a pro rata basis for the remainder of the policy year. All premium charges affected by any change thereby made which have been paid or incurred prior to April 1 shall be adjusted in accordance with the change, as of April 1.
SECTION 2. Those persons whose motor vehicle liability policy renewed on or after January 1, 2007 and before April 1, 2007 shall be reimbursed by the insurance carrier for all reductions in rate applicable to all other drivers as of April 1 for the difference between their actual premium payment during the policy year and the rate effective on April 1, 2007.
