Massachusetts Association of Insurance Agents President, Frank Mancini, together with some key people from his organization testified at the State House meeting last Thursday, November 12, in support of legislation that will make the ban on the use of socioeconomic factors in setting auto insurance premiums as part of State law.
Auto insurance agents in Massachusetts all agree to stop considering socioeconomic factors in auto insurance rates. According to them, consumer-friendly bans must be done to make sure that auto insurance companies are doing their part in serving clients. Most Massachusetts insurance agents believe that drivers should be judged through driving skills alone when it comes to driving insurance, and not based on credit, gender, and occupation.
According to reports, the issue on allowing companies to use credit scores in determining how much premium rates to be charged for car insurance has been creating a buzz for two years now. Then-insurance commissioner, Nonnie Burnes, was firm in changing the state into a competitive system for the first time in thirty years. When insurance commissioner Burnes announced that he was willing to approve only a twelve month ban in practicing of credit score rating policy, uproars from consumer advocates, insurance agents, and lawmakers changed the course of action. Burnes ruled a complete ban on the use of credit scores as well as other socioeconomic factors including the motorist’s profession and education level. Now, this same issue is now refueled by Massachusetts Association of Insurance Agents President, Frank Mancini.
According to reports, Mancini represents an organization that wants the ban in including socioeconomic factors on auto insurance premium computations be cemented in State law. According to insurance agents, Mancini’s organization believes that motorists’ insurance premiums should be computed based on only three factors: residence, driving records, and the number of years they have been driving.
Even though other states in the US already voted in favor of using credit scores as a way to determine car insurance premiums, the state of Massachusetts is still in conflict with the issue. With a strong support from the state’s population to ban using credit scores and other socioeconomic factors, the battle seems to be a long fight that can only be decided by State lawmakers.
At this point, Massachusetts lawmakers remain silent regarding the issue. While the Massachusetts Public Interest Research Group would like to see the advancement of this legislation, State officials still debate on this issue proving very little information about the possible outcome. Burnes said in a recent interview that he is willing to wait if it means seeing a ban on what he calls an “unfair” way of computing insurance premiums.
