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The Attorney Generals Office has made a settlement with the Fair Plan regarding their recent rate hike filing at the Division of Insurance. The Cape and Islands and Fall River will NOT receive the proposed 2.4% rate increase, but will remain the same. New Bedford will receive a 5% increase instead of the 10% proposed. Other Fair Plan territories in the State will see varying increases and Boston will receive a decrease in rates.
Click here to read the Decision and Order
Click here to read the Stipulation
The "Citizens for Homeowners Insurance Reform" testified before the Commissioner of Insurance December 15, 2009 in the Public Hearing. We provided substantial evidence against the proposed rate increase. We feel this testimony was very instrumental effecting the agreement for the settlement. The Attorney General's Office did a fabulous job representing the citizens and we thank them.
The acting insurance Commissioner, Joseph Murphy, will make a final decision by January 15, 2010.
We will continue to fight for insurance reform and I will be meeting with the AG's office in early February to work on language for a Bill which will give us meaningful legislation and more protection in the future. We hope to have a Bill which will ensure all homeowner insurance rates, whether the Fair Plan or Private Insurance, are actuarially sound, not excessive, inadequate or unfairly discriminatory.
Thank you for your continued efforts for our success. Our many voices are making a difference!
Paula Aschettino
Chair/Founder
Citizens for Homeowners Insurance Reform
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HOW YOU CAN HELP - Please print out all sample letters and sign them with your name and address. If you live out of the coastal area, put your coastal property address on as well. Mail these to addresses found on our contact page.
You may add any insurance history to these letters if you wish.
We continue to demand Homeowners Insurance Reform in Coastal MA.
No Major Storms again for 2008. Yet, coastal rates remain the highest in the State.
The Fair Plan made $46 million in profits in 2008. They continue to increase replacement values, increasing premium rates and now have $170 million in profits from 2004-2008. Private insurers have made huge profits also.
Why has the Commissioner continued to approve rate increases for all insurers?
Our 2009 approach to achieve Reform will be to:
The Duties and responsibility of the Commissioner to protect citizens exist under MA General Laws. We want implementation of these regulations by the Commissioner so that:
Premiums shall not be excessive and premiums reduced when proven excessive.
We want a meaningful appeal process for citizens on replacement values.
The Commissioner requires all data from insurers when reviewing a rate increase and we want expenses, re-insurance contracts, profits to be part of this data and make these public.
The Commissioner shall require Insurers to give written proof the models used for predicting hurricane loss, have used MA data and features.
Clarify that wind deductibles shall be triggered by Hurricanes only and capped the deductibles at 1%.
Hold public hearings for all rate hike requests.
ASK FOR CONTIUED HELP FROM THE ATTORNEY GENERAL to oversee the protection of coastal citizens from excessive rate increases and shift of risk to citizens by Insurers.
The Cape and Islands had almost the lowest number of wind claims in the state in 2007 which has been typical of the records shown in the past 15 years. Yet, according to the premiums charged by the Fair Plan and the Private Insurers, we pay the highest rates in the state.
Citizens for Homeowners Insurance Reform, a grassroots organization which was created in October 2006 has over 6000 members and is working for reform to the homeowner insurance crisis in Coastal MA.
Our legislators have continued to hear from us and the legislature completed a "Homeowners Insurance Study" in 2007. Based on results of this study, A Homeowners Insurance Bill was created with the promise of enacting legislation which could better protect coastal citizens.
The Bill went to the Financial Services Committee at the State House for review. This committee oversees Insurance and Banking issues. Our big problem was that the Co-Chair of this committee, Representative Ronald Mariano of Quincy, has accepted large campaign donations over the past years from the Insurance Industry. With this industry influence, changes were made to the language of the Homeowners Bill which would have allowed the insurance industry to gain further benefits and many coastal citizens would have been hurt.
Senator O'Leary of the Cape and Islands made amendments to the revised bill but was outvoted. The Mariano modified bill was passed by the Senate and now went to the House for vote.
The members of the Citizens for Homeowners Insurance Reform activated a campaign to ask the House to "Kill" the Bill. Our philosophy is "No Bill is better than A Bad Bill"
Sincerely yours,
Paula Aschettino
Chair/Founder
Citizens for Homeowners Insurance Reform
21 Smith Street
Eastham, MA 02642
508-240-5231
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