Ms. Coakley said her proposed protections prohibit certain unfair and deceptive conduct in the sale of auto insurance.

Specifically, she said, the regulations:

o Prohibit discriminatory rating and underwriting factors.

o Require insurance rating practices to be fair and transparent.

o Prevent misleading advertisements.

o Ensure that consumers are made aware of discounts they may be entitled to in their auto insurance.

o Require proper notice and justification for policy cancellation.

o Protect consumers from unfair interest rates on installment plans.

o Require companies to properly report at-fault accident reversals.

o Prevent insurance agents from steering consumers to certain insurers based on commissions.

o Require insurers to promptly reply after a claim is filed.

The proposed regulations are available on the Attorney General's website (http://www.mass.gov/?pageID=cagosubtopic&L=4&L0=Home&L1=Government&L2=AG%27s+Regulations&L3=940+CMR+28.00%3a+The+Regulation+of+the+Sale+of+Private+Passenger+Automobile+Insurance+%28Proposed%29&sid=Cago).

"We have seen some positive changes since the auto insurance marketplace was de-regulated two years ago," Ms. Coakley said. "However, there are still many improvements that should be made within this system to better protect consumers."

In December, the Attorney General's Office released a report describing several concerns about practices in the current marketplace and identified potential remedies (http://www.mass.gov/Cago/docs/Consumer/Auto_Insurance_Report.pdf).

Insurer associations criticized the report upon its release and in an April 19 story that appeared in National Underwriter (http://www.property-casualty.com/Issues/2010/April-19-2010/Pages/Mass-Auto-Insurers-Hail-Improved-Market-Since-Reforms-Despite-AG-Criticism.aspx?k=massachusetts+auto).

They said Ms. Coakley has been opposed to the state's managed competition system since it was implemented in 2008.

Regarding Ms. Coakley's new proposed regulations, Paul Tetrault, Northeast state affairs manager for the National Association of Mutual Insurance Companies, said, "The underlying premises of the regulations and the report issued by [Ms. Coakley's] office are that consumers are not faring well under managed competition and that consumers are not protected adequately under existing regulations. Nothing could be further from the truth."

He added, "The increased competition has resulted in most consumers saving money and having meaningful choices in the marketplace for the first time in decades."

He said the Division of Insurance "has done a commendable job of overseeing a smooth transition to managed competition," making Ms. Coakley's proposal unnecessary.

The Attorney General's Office will hold two public hearings on the proposed regulations:

o Boston, June 23, 2:00 p.m.

o Springfield, Mass., June 24, 2:00 p.m.

Interested parties may submit testimony either in person at one of the hearings or in writing.

Ms. Coakley said the office will accept written comments until Aug. 6, 2010.