|TO:||Insurance Companies and Insurance Company Groups that Issue Private Passenger Motor Vehicle Insurance Policies in Massachusetts|
|FROM:||Joseph G. Murphy, Acting Commissioner of Insurance|
|DATE:||January 5, 2010|
|RE:||Rating of Motorcycle Policies|
The Division of Insurance ("Division") has received complaints from consumers that certain insurance companies are not properly applying their rating rules to motorcycles upon renewal of the underlying policies or upon the settlement of claims. Specifically, insurers may be applying rating rules to motorcycles that are not consistent with the rules on file with the Division. This may result in unfair premiums or improper settlements of policyholder claims.
The Division is initiating targeted market conduct examinations to investigate these issues further and will use its full array of enforcement tools if it determines that insurers are committing these practices.