Approvals Given in Massachusetts Auto Rate Filings Despite Efforts of AG

Approvals Given in Massachusetts Auto Rate Filings Despite Efforts of AG

28 January 2008 · No Comments

Insurance Journal has an article posted discussing Commissioner Burnes’ approving rate filings by Commerce and Safety over Attorney General Coakley’s protests.

Quoting IJ:

Burnes dismissed the AG’s entire analysis, ruling in favor of the insurers on each provision. Burnes suggested that while the AG’s approach might have worked under the previous fix-and-establish system, it was irrelevant under the new managed competition system and that the AG “fails to recognize” that the rules have changed.

Burnes said that while the attorney general wants to challenge individual provisions of rates, as was done under the previous system, a competitive system requires a broader view.[...]

“It is not my task to look at aggregate industrywide data for the purpose of developing an underwriting profits provision that reasonably reflects the average financial needs of a mythical ‘Every Company,’ but is specific to none.”[...]

“It is neither my role, nor the role of the Attorney General, to decide what expenses a company should incur in a competitive insurance market provided no such expenses violate the law. Companies that unwisely spend money will enjoy less success in the market, and this experience alone will alter future conduct,” Burnes wrote.

As someone who’s been grilled a few too many times in difficult rate filings, that’s good reading. :)

For details on what actually was approved, check out the article.

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