Ms. Bowler's efforts to put the MAIP into effect have been contested in court. In August, Massachusetts' highest court ruled unanimously she had the authority to create an assigned risk plan for drivers with bad records.

The decision by the Massachusetts Supreme Judicial Court ended a challenge by certain insurers, who favored the current hybrid reinsurance plan for high-risk drivers. Other insurers took an opposing view.

Ms. Bowler first issued rules to create an assigned risk plan on Dec. 31, 2004. She had ordered the current model phased out by Jan. 1, 2008.

This move was challenged in court by Commerce Insurance, Arbella Mutual Insurance Company and the Center for Insurance Research as well as seven insurance agencies and brokerages.

The commissioner was supported by the American Insurance Association with the Massachusetts Insurance Federation, the Property Casualty Insurers Association of America, the Public Interest Research Group and a number of insurers who filed a "friend of the court" brief supporting the commissioner.

At the most recent hearing, PCI spoke in favor of instituting the MAIP.

"The creation of the MAIP will be a significant and very positive development for the Massachusetts private passenger auto insurance market," said Frank O'Brien, vice president and regional manager for PCI.

According to Mr. O'Brien, MAIP will mean that--for the first time since the creation of the current residual market structure--participants will be assured that the losses and burdens of the system will be distributed fairly and equitably, as required by law.

"Additionally, the MAIP will eliminate the manipulation and gaming that have been the hallmarks of our bizarre residual market," he said.

In testimony PCI submitted to the Division of Insurance, the group warned that opponents of MAIP "will do everything in their power to prevent implementation."

"The division has an obligation to finalize the establishment of the MAIP in accordance with the schedule in the proposed rules," said PCI. "This is an important step in reforming an auto insurance system plagued by inefficiencies, government control of forms and prices, and domination by a few large insurers."

AIA, in its testimony, said the plan will provide a fair and transparent system and should be implemented.

"The current residual market system has become a roadblock to writing auto insurance in the Commonwealth," AIA said.

John Murphy, AIA's vice president for the Northeast Region, argued that the current system "is unfair and benefits some insurers over others."

Mr. Murphy testified that "rapid transition to a traditional assigned-risk plan will be helpful to the broader auto insurance market. It will address current inequities in the system, which are a critical problem. It will also send an important positive signal that Massachusetts is serious about normalizing its auto insurance system."