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OFFICE
OF SENATOR ROBERT O'LEARY
FOR IMMEDIATE RELEASE - March 26, 2009 |
Contact:
Micaelah Morrill
617-722-1570 |
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Senator O’Leary Votes to Preserve a Driver’s Right to Appeal
Auto insurance reform legislation passed the Senate yesterday that blocks a recent proposal by the Commissioner of Insurance to eliminate a drivers’ ability to appeal “at-fault” cases and other incidents to the Motor Vehicle Board of Appeals.
Senate Bill 2022 preserves the policyholders right to appeal to the Board, preventing insurers from making unilateral “at-fault” determinations. Insurers have a huge financial stake in the process of determining who is responsible for an accident because they may then impose a large surcharge on drivers determined to be at fault. Allowing insurance companies to make those determinations without any potential for outside challenge would go against the benefits of managed competition, which seeks to increase market competition while maintaining consumer rights
“On balance, the introduction of managed competition in the insurance market has been good for the consumer, as more companies are writing auto policies in the Commonwealth,” Said Senator O’Leary (D-Barnstable). “This bill ensures that in the transition to managed competition, we preserve the rights of policyholders to appeal to a third party.”
The bill will now move to the House for further action.
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