Mass. AG Calls Proposed Homeowners Premium Hike ‘Illegally Excessive’ (7-10%)
Massachusetts Attorney General Martha Coakley is opposing a recently proposed home insurance rate request for 150,000 consumers, calling it illegally excessive.
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It is a legal requirement that rates through the FAIR Plan cannot be excessive, Coakley said.
“The FAIR Plan is a crucial service for homeowners who are unable to find insurance coverage, and it is our job to make sure its rates are not excessive,” Coakley said. “We will continue to fight on behalf of homeowners to protect their right to affordable coverage.”
The insurance industry is seeking the commissioner’s permission to raise rates for the FAIR Plan by an average of 7.4 percent across the state and by 10 percent in New Bedford, Fall River, Quincy, Lawrence, Brockton, Lynn, and parts of Boston. Homeowners on Cape Cod face a 6.7 percent rate hike under the industry proposal.
The increases include a “profit-provision” add-on that alone equates to $15 million of additional annual profit, according to Coakley. Between fiscal years 2007 and 2011, the FAIR Plan’s profit totaled more than $200 million.
http://www.insurancejournal.com/news/east/2012/01/25/232738.htm
