February 4, 2010 - Boston, MA: Joint Committee on Financial Services reports out favorably H-958 - legislation sunsetting exemptions from auto insurance assigned risk plan for new entrants.
On February 4th the Joint Committee on Financial Services reported out favorably H-958 redrafted (New Number H-4476) which has now been referred to the House Steering & Policy Committee prior to be placed on the House calendar for action. The bill contains the following elements:
(1) Sunsets current two-year exemption for new entrants from receiving assigned risk business effective 1/1/11, grandfathering those in
the market but totally eliminating exemption as of 12/31/12;
(2) Clarifies that a duly licensed producer, certified to place business in the plan, shall own and have exclusive right, as the insured's
producer of record, consistent with language drafted by MAIA;
(3) Redefines the CAR Governing Committee small domestic company seat to allow any domestic insurer writing less than 2.5% of the
private passenger auto market and unaffiliated with any other insurance company represented on the Governing Committee to hold
the seat and eliminates language requiring a seat for an ERP; and
(4) Extends the suspension of the 35% penetration requirement under the group marketing law through 2015 and extends the date for the
Commissioner to file a report with the Legislature on the group marketing law until December 31, 2014.
