"Both Gov. Swift and the Massachusetts Legislature should be commended for recognizing that the additional assessment was inappropriate," said Frank O'Brien, the Alliance's New England region manager, in response to the veto's confirmation.

In a July 23 letter to Gov. Swift, Mr. O'Brien explained that, while he appreciated the state's budget difficulties, the burden-shifting contained in the budget bill, H.B. 5300, was not acceptable public policy.

"One of the most disturbing aspects of the original bill was a shift from direct state funding of various regulatory functions to private sector funding via assessment language," he wrote.

The letter continued, "The Massachusetts insurance industry already pays substantial sums to the Commonwealth, and these additional fees would have eventually been reflected in the premiums paid by insurance consumers."

He noted that the insurance industry would have been assessed about $2.5 million in the coming fiscal year.

Before it adjourned, however, the legislature did pass a new bill, H. 5215, designed to make sure all insurers pay their share of statutory assessments.

James T. Harrington, vice president of the Washington-based American Insurance Association, commented that passage of H. 5215 "provides for the commissioner of insurance to make a fair assessment on all licensed insurers writing these lines of business.."

The bill is important, he said, "because it will prevent any individual insurer from seeking to avoid these assessments."