Citizens for Homeowners Insurance Reform

Fair Plan Rate Hike Request
Report on the Public Hearing before the Commissioner of Insurance
April 27, 2007
Only four Citizens made the trip to Boston to testify before the Commissioner of Insurance on April 27, 2007 at the Public Hearing! I would have loved a better showing but we did make some very good points.

Senator O'Leary sent a written statement asking for the Commissioner to deny the Fair Plan Rate Increase. Representative Sarah Peake from Lower Cape made a statement asking for the Commissioner to deny the Fair Plan Rate Hike Request based on the economic impact this would have on the citizens who are still suffering from last falls increase.

Representative Cleon Turner was present and also asked the Commissioner to deny the rate hike request stating the Cape Citizens have seen the largest increases in the State in insurance. This was unfair and excessive.

The Citizens brought up the fact that the two modeling companies the State uses to predict storms RMS of CA and Air-Worldwide of Boston:

  1. These companies are owned or connected to insurance companies thus a question of conflict of interest .
  2. The modeling company RMS has been accused of changing the method for prediction of storms which produces results not scientifically valid. ( see doc. On our web site in data and docs)
  3. We want transparency and public access to the methods by which these companies arrive at their results. We want the Commissioner of Insurance to require independent scientific review of these findings for accuracy.
We stated to the Commissioner that the requested Fair Plan Rate Increase of 25% for citizens on Cape Cod and the Islands would be unreasonable and excessive.

We requested that the Commissioner use all her power and authority to carefully review of all documents and data presented by the Fair Plan to substantiate this request and require full public view of all data and reports.

We asked the Attorney to deny this rate request which is shown to be "Excessive and Unfairly Discriminatory".

The Attorney Generals Office, the citizen's advocate, is asking citizens to write short letters describing how this increase would affect their lives. Please send those letters to me at:

Citizens for Homeowners Insurance Reform
21 Smith Lane
Eastham, MA 02642

Send ASAP and I will be mail them off for testimony.

In early June the Commissioners office will begin cross examination of persons providing information for the Fair Plan rate hike request. These are public hearings and I hope we can post dates and times ahead of time and make sure some citizens sit in on these.

Thank you, Paula Aschettino


04-27-2007: Massachusetts Property Insurance Underwriting Association Rate Filing; Docket No. R2007-02
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Hearing Scheduled for April 27, 2007.

Pursuant to M. G. L. c. 175C, §5, a hearing will be take place at 10:00 a.m. on April 27, 2007, at the offices of the Division of Insurance, 5th Floor, One South Station, Boston, MA, to consider whether the Commissioner of Insurance should approve rate filings for property insured through the Massachusetts Property Insurance Underwriting Association (the “MPIUA”), also known as the FAIR Plan. The Association has submitted a rate filing, which includes rate, rule and form revisions for Homeowners Multi-Peril Insurance, and rate and rule revisions for Dwelling Fire and Extended Coverage and Commercial Fire and Allied Lines Insurance. The proposed overall rate effects are, for Homeowners Multi-Peril Insurance, +13.2 percent; for Dwelling Fire and Extended Coverage +8.0 percent; and for Commercial Fire and Allied Lines 0.0 percent. The proposed effective date for each filing is July 1, 2007. The MPIUA filings may be examined at the offices of the Division of Insurance during normal business hours.

The hearing shall be conducted in accordance with the provisions of General Laws, c. 174A, c. 175A, c. 175C, and c. 30A; and 211 CMR 101.00, et seq. Any person who wishes to make an oral statement is asked to submit a Notice of Intent to Testify on or before April 25, 2007. All other persons will be heard after those who submit such notice. Any person, other than the State Rating Bureau, who wishes to exercise a statutory right to intervene must file a notice of appearance by April 6, 2007. Any other person who wishes to intervene or to participate in the hearing must submit a written petition for leave to intervene or participate by April 2, 2007, and must include with that petition any data which they intend to introduce at the hearings.

All submissions shall reference Docket No. R2007-02 and shall be addressed to the Docket Clerk, Hearings and Appeals, Division of Insurance, One South Station, Boston, MA 02110-2208. A prehearing conference will be held immediately following the public comment portion of the hearing. All parties and persons who wish to intervene or participate in this hearing must attend.



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