According to the National Association of Insurance Commissioners, following the deregulation of the auto insurance marketplace in Massachusetts in April 2008, the average driver’s coverage premiums decreased by $133.80 per year. The Association released a report that showed that at the end of 2007, the average premium had been $1,056.91 per year. Two years later, at the same time, it had dropped to $923.11. That meant that the average decrease in auto insurance premiums was 12.7 percent per year. It noted that only the figures considered only the premiums paid…
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AUTO INSURANCE COMPETITION A BIG SUCCESS IN BAY STATE
Trade Group Hails Report by National Insurance Regulator Group PRESS RELEASE, BOSTON:“The verdict is in and it is remarkable: Since the introduction of competition, consumers in Massachusetts have seen their auto insurance rates decline by the most of any state in the nation,” said James T. Harrington, the Executive Director of the Massachusetts Insurance Federation (MIF.) “Polling has been clear that competition is very popular with Massachusetts consumers but now we know, too, that industry regulators throughout the country agree that the remarkable decrease by an average 12.7% for auto…
Read MoreInsurance brokers speak out against commissions rule in healthcare overhaul
Insurance producers are fighting the Patient Protection and Affordable Care Act’s (PPACA) element that excludes commissions from the calculations of the minimum medical loss ratio. The PPACA states that health insurance companies in the large group market must spend a minimum of 85 percent of premiums on healthcare services, and those in the small group and individual markets much spend at least 80 percent on healthcare services. Broker and agent groups are battling on Capitol Hill to remove their commissions from the requirement. They had hoped that the cause would…
Read MoreInsurance regulators pass controversial resolution to amend the Affordable Care
The National Association of Insurance Commissioners (NAIC) gathered this week to vote on a controversial resolution that would have drastic effects on a consumer protection clause of the Affordable Care Act. The provision would have saved consumers nationwide approximately $1 billion in premiums while offering them protections from future rate hikes. The provision is also part of the controversial medical loss ratio provision of the health care law – which requires insurers to pay no less than 80% of their premium money on medical care. Regulators have been divided on…
Read MoreNew Mexico to increase reviews of insurance rates
According to state officials, following the questioning of the health insurance company quality oversights last year in New Mexico, that state is now concentrating on boosting the reviews to the requests for rate hikes by pumping $3 million in grant money into the effort. Furthermore, an ombudsman has been employed at the Public Regulation Commission, by the state insurance regulators in order to help consumers to better understand the often complicated health insurance ecosystem, using an additional federal grant of over $220,000. Moreover, deputy superintendent of insurance, Craig Dunbar, said…
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