Healey objects to auto insurance fee increase

03.26.2015

Originally posted on The Boston Globe's website

By Jack Newsham, Globe Correspondent

Attorney General Maura Healey is opposing a plan by the state’s high-risk insurance pool to increase fees for the first time since it was created.

In a letter to the state’s Division of Insurance this week, Healey’s office requested the state reject a proposal by Commonwealth Auto Reinsurers, a group of insurance companies, to increase fees paid by users of the state’s car insurance system of last resort, the Massachusetts Automobile Insurance Plan.

Glenn Kaplan, the chief of the attorney general’s insurance and financial services division, said a third of the policyholders who would be affected have perfect or nearly-perfect driving records, and a disproportionately high number were poor or minorities. He also asked the state’s top insurance regulator to require car insurance companies let high-risk policyholders pay online, which could reduce the fees they have to pay.

For a policyholder who makes nine payments per year, the proposed fee increases would amount to $18 annually, according to a spokesperson for the attorney general. The bounced-check fee would also increase from $25 to $29.

Jayda Leder-Luis, a spokesperson for the insurance commissioner, said the office had received Kaplan’s letter and was reviewing it.


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