August 27, 2004
FOR IMMEDIATE RELEASE
CONTACT: Chris Goetcheus
Insurance Commissioner Bowler Rules On Proposed Residual Auto Insurance Market Changes
Orders C.A.R. to Adopt Further Consumer and Market Protections
Massachusetts Insurance Commissioner Julie Bowler today issued an order concerning proposed new rules for the distribution of high-risk drivers among insurers in the state's private passenger auto insurance residual market.
Following a July 22nd public hearing and thorough review by Commissioner Bowler and technical staff, she is remanding Commonwealth Automobile Reinsurers' ("C.A.R.") proposed rule changes to its Governing Committee so that they may consider and implement further consumer and market protections the Commissioner has specified in her order.
"C.A.R. is to be commended for presenting a solid framework for residual market reform and transition. Any systemic changes that are ultimately implemented must address concerns raised during our hearing process. In keeping with our collaborative process and with an end goal of creating a stable, predictable and more transparent residual market, I am directing C.A.R. to address these areas," said Commissioner Bowler.
Among the recommendations made by Commissioner Bowler:
Commissioner Bowler's order requires C.A.R.'s Governing Committee to submit recommended amendments by September 24th. A public hearing will be scheduled for October 4th at the Division of Insurance to allow for further consideration of the proposed rule changes.