October 9, 2007
AG's office: insurance rate increases unFAIR
By Cory Hopkins
State Attorney General Martha Coakley has recommended a statewide 18 percent rate decrease for Massachusetts homeowners enrolled in the state-sponsored homeowner insurance FAIR plan.
The FAIR Plan, which stands for Fair Access to Insurance Requirements, was created to offer basic property insurance to applicants unable to buy insurance on the voluntary market, and is run by the state's insurance companies.
Coakley's recommendation, if adopted by the state's Insurance Commissioner, would roll back last year's 25 percent rate hike for coastal communities, Coakley's office said.
In current proceedings before the insurance commissioner, the FAIR plan is requesting an additional 25 percent rate hike for Cape Cod residents and an overall 13.8 percent rate increase statewide.
Coakley said the proposed rate hike relies too heavily on secretive and potentially inaccurate hurricane damage model reports, overpriced reinsurance coverage and inflated loss projections.
The plan covers approximately 170,000 homeowners statewide.
The FAIR Plan, which stands for Fair Access to Insurance Requirements, was created to offer basic property insurance to applicants unable to buy insurance on the voluntary market, and is run by the state's insurance companies.
Coakley's recommendation, if adopted by the state's Insurance Commissioner, would roll back last year's 25 percent rate hike for coastal communities, Coakley's office said.
In current proceedings before the insurance commissioner, the FAIR plan is requesting an additional 25 percent rate hike for Cape Cod residents and an overall 13.8 percent rate increase statewide.
Coakley said the proposed rate hike relies too heavily on secretive and potentially inaccurate hurricane damage model reports, overpriced reinsurance coverage and inflated loss projections.
The plan covers approximately 170,000 homeowners statewide.
WBJ Web Partners
Most Recent
Most Recent
0 Comments