Topic: Regulatory

In an opinion released yesterday, the Massachusetts Supreme Judicial Court affirmed the state insurance commissioner’s approval of proposed increases in property and casualty insurance rates.  Ruling against the state Attorney General, the Court upheld the discretionary power of the Massachusetts Commissioner of Insurance to approve rate increases that exceed statutory maximums based on consideration of predicted hurricane loss effects and the cost of catastrophic risk reinsurance. 

Under Massachusetts new managed competition process to set auto insurance rates, previously discussed here and here, the State’s 19 automobile insurance companies were invited to make initial rate filings and then to submit amended rate proposals after reviewing their competitors’ proposals. 

The Massachusetts Commissioner of Insurance Nonnie S. Burnes released a Division of Insurance Bulletin on December 20, 2007, which requires that any licensed insurer must, upon the payment of $5,000 or more in the settlement of a third-party liability claim that is delivered to the claimant’s attorney, provide a concurrent written notice to the claimant.