Hearing Scheduled for June 3, 2010
Pursuant to the authority granted to the Commissioner of Insurance under Massachusetts General Laws c. 175E, §7, the Division of Insurance ("Division") will hold a hearing, at the request of the Attorney General, regarding the private passenger motor vehicle rate filings submitted by the Occidental Fire & Casualty Company of North Carolina ("Occidental") on January 11 and March 3, 2010. Testimony in this hearing will commence at 10:00 a.m. on June 3, 2010 at the Division's offices at 1000 Washington Street, Boston, MA and will be conducted day-to-day until the hearing is complete.
The purpose of this hearing is to afford the Attorney General and Occidental (collectively, the "Parties") an opportunity to provide testimony and documents relating to Occidental's proposed rates so that the Commissioner may determine whether such rates are, as alleged by the Attorney General, excessive and unfairly discriminatory in violation of Massachusetts General Laws, c. 175A and c. 175E.
Specifically, the Commissioner will determine whether the following aspects of Occidental's rate filings, as challenged by the Attorney General, result in excessive rates: (1) Occidental' s alleged failure to provide data, information or other support for a requested 10.3 percent rate increase that appears to be nearly identical to 2009 rates filed by Commonwealth Automobile Reinsurers, without explanation of why those rates are appropriate for Occidental; (2) Occidental's implementation of the rates it filed on January 11, 2010, before expiration of the 45-day waiting period prescribed by statute; and (3) Occidental's imposition of a policy issuance fee in the amount of $25 per policy, allegedly without support or justification.
The operation of Occidental's rate filings currently has not been suspended pending this hearing.
This proceeding is designated as Docket R2010-03 and shall be conducted pursuant to 211 CMR 79.00, et seq. All papers relating to this proceeding shall refer to Docket No. R2010-03 and shall be addressed to the Division of Insurance, Docket Clerk, Hearings and Appeals, 1000 Washington Street, Suite 810, Boston, MA 02118-6200.
|Dated May 14, 2010||________________________________|
Joseph G. Murphy
|Commissioner of Insurance|