Ten consumer groups urged Insurance
Commissioner Nonnie Burnes and Governor Deval Patrick to continue a
longstanding ban on unfair and discriminatory auto insurance practices in Massachusetts. The Commissioner’s July 16th
decision to establish an assigned risk plan appears to allow insurers to deny
motorists a policy based on factors such as education, credit scores, and home
ownership. Ending the ban on the use of
these factors is expected to harm drivers throughout Massachusetts, especially low-income
drivers.
The groups include: Foundation for Taxpayer and Consumer Rights,
Center for Economic Justice, Lawyers' Committee for Civil Rights under Law
of the Boston Bar Association, MASSPIRG, Center for Insurance Research,
Consumer Federation of America, Massachusetts Law Reform Institute,
Massachusetts Consumers’ Coalition, Consumer Assistance Council of Cape Cod,
and the National Consumer Law Center (on behalf of its low-income clients).
“I think most people would
agree that if I have a good driving record but have a high school degree
instead of a Masters, insurance companies should not be able to deny me
insurance,” said Deirdre Cummings of MASSPIRG.
“It’s hard to believe that
after all these years it’s the Patrick administration that’s allowing insurers
to use these factors, which have been proven to harm low-income and minority
drivers,” said Stephen D’Amato of the Center for Insurance Research. “When people with perfect driving records
start getting rejected because of low credit scores or because they rent,
they’re going to be justifiably furious.”
PDF copies of the letters
sent to Governor Patrick and Commissioner Burnes are
below.
Insurance-Letter-to-Gov-Patrick-and-Com-Burnes.pdf