Massachusetts P&C rate regulation

What this document is

Massachusetts P&C rate regulation: M.G.L. c. 175A (Casualty and Surety Rate Regulatory Law) and c. 175E (motor vehicle and certain other insurance rate regulation) is a state statute published by malegislature.gov. It is one of the Massachusetts documents that insurance license exam questions are written from, including massachusetts property & casualty practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• M.G.L. c. 175A, § 6(a) (Rules, rates, classifications; filing with commissioner)

  “The commissioner may by order delay the effective date for not more than thirty additional days in any case where he determines such delay is needed to properly examine the filing and any supporting information filed as requested or to permit a hearing thereon; provided further, however, that, if...”

• M.G.L. c. 175A, § 8(a) (Rating organization; application for license; regulation; fee)

  “Every such application shall be granted or denied in whole or in part by the commissioner within sixty days of the date of its filing with him. Licenses issued pursuant to this section shall remain in effect for three years unless sooner suspended or revoked by the commissioner. The fee for said...”

• M.G.L. c. 175E, § 4(a) (Standards applicable to making and use of rates)

  “In connection with private passenger motor vehicle insurance, rates shall not be based, in whole or in part, on any credit information relating to an insured, including, but not limited to, a numerical credit-based insurance score or other credit rating of an insured; and provided, that no insurer,...”

• M.G.L. c. 175E, § 4(d) (Standards applicable to making and use of rates)

  “For motor vehicle insurance, rates for an insured age sixty-five years or older, who otherwise qualify for the lowest rate classification applicable to drivers generally, shall be twenty-five per cent less than the applicable rate for such classification.”

• M.G.L. c. 175A, § 5(c) (Rates; regulatory provisions; insurance company groups)

  “Nothing in this section shall be taken to prohibit as unreasonable or unfairly discriminatory the establishment of classifications or modifications of classifications or risks based upon size, expense, management, individual experience, purpose of insurance, location or dispersion of hazard, or any...”

• M.G.L. c. 175A, § 7(b) (Improper filing; hearings; aggrieved persons; remedies)

  “Any person or organization aggrieved with respect to any filing which is in effect may make written application to the commissioner for a hearing thereon; provided, that the insurer or rating organization that made the filing shall not be authorized to proceed under this subsection.”

• M.G.L. c. 175A, § 14 (Rating organizations, etc.; examination; confidentiality and privilege; power of commissioner; costs)

  “The commissioner shall, at least once in five years, make or cause to be made an examination of each rating organization licensed in this commonwealth as provided in section eight and he may, as often as he may deem it expedient, make or cause to be made an examination of each advisory organization...”

• M.G.L. c. 175A, § 18 (Violation of this chapter; penalty)

  “The commissioner may suspend the license of any rating organization or insurer which fails to comply with an order of the commissioner within the time limited by such order, or any extension thereof which the commissioner may grant. The commissioner shall not suspend the license of any rating...”

• M.G.L. c. 175E, § 5 (Fixing rates; hearing; report)

  “If the commissioner determines, after a hearing, at which representatives of consumers and other interested parties may participate, and on the basis of findings of fact and conclusions, that, with respect to any territory or to any kind, subdivision or class of insurance, competition is either (i)...”

• M.G.L. c. 175E, § 6(a)(2) (Antitrust provisions; monopolies; price fixing; restraints of trade, etc.)

  “No insurer or rating organization shall agree with any other insurer or rating organization to charge or adhere to any rate, although insurers and rating organizations may continue to exchange statistical information and provided further a rating organization may establish advisory manuals of...”

• M.G.L. c. 175E, § 7A (Appeal of application of provision of safe driver insurance plan or merit rating plan)

  “If the board finds that the insurer's application of the safe driver insurance plan, merit rating plan or determination of fault was not in accordance with those standards and provisions, it shall order the insurer to make the appropriate premium adjustment and the insurer shall notify the merit...”

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More Massachusetts sources

• M.G.L. Chapter 176D - Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance (Secs. 1, 2, 3, 3A, 4, 5, 11)State statute
• Massachusetts accident and health / disability policy provisions: M.G.L. c. 175, ss. 108-108N, 110A-110M, 111State statute
• M.G.L. ch. 176D, Unfair Methods of Competition and Unfair and Deceptive Acts and Practices in the Business of Insurance (complete chapter)State statute
• Massachusetts insurance contract and general provisions applicable to all insurers: M.G.L. c. 175, ss. 2, 2A, 2B, 3, 181-194State statute
• Massachusetts group and blanket health insurance: M.G.L. c. 175, ss. 110, 110D, 110G, 110I, 110J, 110K, 110LState statute
• Massachusetts group life insurance: M.G.L. c. 175, ss. 133-138AState statute
• Massachusetts life insurance and annuity contracts, including standard policy provisions: M.G.L. c. 175, ss. 118-132A1/2, 139-146A, 149, 204State statute
• Massachusetts Life and Health Insurance Guaranty Association Law: M.G.L. c. 175, s. 146BState statute