Coakley proposes auto insurance reg. changes

BOSTON – Attorney General Martha Coakley is proposing new regulations aimed at better regulating the Bay State’s new managed-competition auto insurance market.
In 2008, Massachusetts abandoned its 31-year-old price controls, in which the state set the rates charged by all companies. It led to the exodus of major insurance providers, according to critics.
The consumer-protection regulations filed by Coakley’s office “would increase the level of transparency, enhance policyholders’ ability to shop effectively for policies, and better prevent deceptive practices by insurances companies against consumers,” according to a news release. Specifically, the regulations:
&#8226 Protect consumers from insurance companies that use discriminatory factors or proxies for illegal factors in rating or underwriting auto insurance.
&#8226 Require insurance-rating practices to be fair and transparent.
&#8226 Prevent insurers from issuing misleading advertisements.
&#8226 Ensure that consumers are aware of discounts they may be entitled to in their auto insurance.
&#8226 Protect consumers from policy cancellation or nonrenewing policies without proper notice and justification.
&#8226 Protect consumers from unfair interest rates on installment plans.
&#8226 Require companies to properly report at-fault accident reversals.
&#8226 Protect consumers by preventing insurance agents from steering consumers to certain insurers based on commissions.
The office will hold a series of public hearings on the proposals this month. The proposed regulations are available on the attorney general’s website. &#8226