About Massachusetts Insurance Laws, Health Insurance and Regulations…
The Massachusetts insurance industry is among the strongest in the country, benefiting from numerous government policies. These same policies often cause trouble for the Massachusetts insurance industry, but insurers have been able to overcome many of these challenges. The state regulates its insurance industry through the Massachusetts Insurance Division. The Massachusetts Insurance Division, like other agencies found in states throughout the county, is responsible for ensuring that consumers and businesses are protected from malicious practices and exploitation. The agency upholds the regulations established by the federal government and enforces these regulations should insurance companies choose not to comply. As in other states, insurance companies that do not comply to federal and state regulations risk losing their license to sell insurance.
Auto insurance is mandatory in Massachusetts. The auto insurance requirements of the state are somewhat aggressive in comparison to those found elsewhere in the U.S. The Massachusetts Insurance Division has determined that rivers may carry a minimum level of insurance, which must account for: $20,000 per person for bodily injury for others; $40,000 per accident for bodily injury; and $5,000 for property damage. Drivers are required to carry $8,000 worth of personal injury proportion (PIP) coverage. Massachusetts drivers must also carry coverage for accidents caused by uninsured motorists, which much adhere to the same minimum requirements as typical auto insurance policies.
The state is home to a merit rating plans, which allow insurance providers to adjust the rates of policies based on the driving history of a policyholder.
The state also hosts a Safe Driver Insurance Plan, which provides safe drivers with insurance rates that are below the state average.
Massachusetts homeowners are not required to purchase insurance protection for their properties. Massachusetts is situated close very close to the Atlantic Ocean and can often experience powerful storms that make their way to the East Coast. In 2012, Hurricane Sandy cause significant flooding throughout the state. Because of the potential threat of natural disasters, the Massachusetts Insurance Division advises homeowners to purchase the appropriate coverage for their properties. Though homeowners insurance is not mandated by the state, the Massachusetts Insurance Division does regulate the property insurance industry to ensure fairness and balance.
Massachusetts is home to more than 6 million people, only 5% of whom do not have health insurance coverage of any kind. Massachusetts boasts of one of the lowest uninsured rates in the country, largely due to the fact that it has had a working health insurance exchange since 2006. In 2006, former Governor Mitt Romney passed an expansive health care reform law, which established a comprehensive insurance exchange program in the state. Massachusetts governs this exchange, and it is likely to comply with the standards that are being established through the Affordable Care Act.
Massachusetts Insurance Resources:
Massachusetts Insurance Commissioner: Joseph G. Murphy
Massachusetts Department of Insurance Website:
Massachusetts Insurance Licensing Info: http://www.mass.gov/ocabr/licensee/license-types/insurance/
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