Just another special interest our crack team of looters, 'er, politicians work for:
"Drivers losing a right to appeal; Insurers to decide on surcharges" by Jeffrey Krasner, Globe Staff | March 2, 2009
Some Massachusetts drivers could pay hundreds of dollars more for insurance under a state plan to eliminate the board that allows them to contest auto accident surcharges.
The Division of Insurance Board of Appeal, which hears about 50,000 surcharge cases annually, is scheduled to be dissolved April 1, said insurance commissioner Nonnie Burnes. The board is no longer needed, she said, because insurance companies now set their own rates, including penalties for drivers deemed responsible for accidents.
Before last year's implementation of a "managed competition" system, premium rates and surcharges levels were dictated by the state. Now, motorists unhappy with their bills can switch to an insurer with more lenient policies on accidents, Burnes said.
"We're trying to develop a system where the insurers are more responsive to customers," she said of the move to eliminate the appeals board. Currently, insurers can increase premiums by levying surcharges if they determine a driver is more than 50 percent to blame for a collision. Such penalties often cost hundreds of dollars annually for up to six years. About half of the 50,000 cases disputed each year are overturned by the appeals board. Those drivers are issued refunds.
As the April deadline to dissolve the board nears, however, a move to save it is underway on Beacon Hill. State Senator Stephen J. Buoniconti, Democrat of West Springfield and chairman of the Joint Committee on Financial Services, said more than half the members of the House and Senate have cosigned a bill that would require Burnes to maintain the appeals board.
"I'm getting more calls about this bill than any other issue," Buoniconti said....
Save for the gas tax, of course.
The state's new insurance system is intended to save drivers money by spurring competition among insurers on price, service, and features. The rules governing the system also included doing away with the appeals board. That has angered some consumer advocates.
Yeah, because what usually happens is a BROKEN PROMISE and the RATEPAYER is SCREWED!!!
"Consumers should have an independent board to challenge a decision that could result in hundreds of dollars a year in higher premiums," said Deirdre Cummings, legislative director for the Massachusetts Public Interest Research Group, an advocacy organization. "This is a straight-up consumer protection."
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An improperly assessed surcharge can cost a driver hundreds or thousands in extra premiums. Insurance companies have great latitude to decide how much extra to charge a driver for an accident. That surcharge lasts for as long as six years, according to insurance companies and agents.
Burnes said drivers who believe they were improperly found at fault can shop for an insurer that won't charge them extra. The option, called "accident forgiveness," is a new feature that some insurance companies offer under the new competitive system. It will force some drivers to seek "forgiveness" for accidents that aren't their fault.
Why must FALSELY ACCUSED and ASSESSED DRIVERS have to SHOP AROUND to keep from getting RIPPED OFF? WHO is the STATE WORKING FOR, anyway?
Frank Mancini, president of the Massachusetts Association of Insurance Agents, which supports keeping the board, said the savings offered by accident forgiveness programs won't help all motorists because switching insurers won't necessarily lower a driver's bill.
"The accident follows you," said Mancini. "It doesn't go away if you move to another insurer."
So the STATE is also LYING, huh? Aaaaaarrrrrrrgggghhhh!!!!
Burnes has proposed a system in which insurance companies would give customers assessed surcharges the opportunity for two reviews. Consumers could also file a complaint with the division, though there would not be a formal review.
"They can call us," said Burnes. "We'll help them navigate the system."
Just what we need: state help navigating a labyrinth they helped construct to f*** you. That's pricelss!
Mancini said he is skeptical of the plan. "Companies review claims all the time," he said. "We don't find them changing their decisions very often."
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Obviously, the word got out that people are pissed:
"Mass. to add rules on driver surcharges" by Jeffrey Krasner, Globe Staff | March 6, 2009
Responding to criticism of plans to eliminate an appeals board for drivers hit with premium surcharges by insurance companies, state insurance commissioner Nonnie S. Burnes yesterday said she will release "additional rules" within weeks that would offer consumers more protection against unfair penalties.
Burnes said she still plans to dissolve the Division of Insurance Board of Appeal, which hears about 50,000 cases a year filed by drivers found "at fault" in an accident. Such findings result in surcharges that can cost hundreds of dollars annually and last six years. The board reverses insurance company rulings in about half of the cases.
Burnes said the state's move to "managed competition," in which insurers have greater flexibility to design products and set rates, makes the board unnecessary. But consumer advocates and independent insurance agents said her plan, which calls for insurers to hear appeals of accident surcharges, is unfair. Insurers have an economic incentive to maintain surcharges and charge higher premiums, they say....
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Just like the HEALTH CARE RIP OFF!!!
