Every insurer in the state that writes private passenger auto would be required to comply with these regulations within 60 days of the bill's passage. (Credit: Shutterstock.com)
A bill sponsored by Massachusetts State Senator Pavel Payano aims to reduce "racial and socioeconomic inequities in auto insurance premium pricing" by altering how ZIP codes are weighed in underwriting.
If passed, the bill (S703) would disallow rating plans for private passenger motor vehicle insurance including territorial classifications from assigning a weight of more than 75% to individual territorial loss cost indication and no less than 25% to the state-wide average loss cost indication. Individual territorial loss cost and statewide average loss cost indication would need to be actuarially justified.
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Brittney Meredith-Miller
Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].
