Massachusetts' Insurance Commissioner wants to eliminate the state's independent auto insurance appeal board, citing cost and a move towards a more competitive insurance market. This proposal doesn't sit well with many consumers, legislators, and even insurers, according to an article in The Republican. If the board is eliminated, policyholders will instead have to appeal their claims to the insurance companies themselves; consumer groups fear that is unfair and will create bias towards finding the motorist at fault in order to avoid paying accident claims.
However, the insurance commissioner claims that the change will actually benefit consumers, because they will no longer have to pay a fee to appeal and will have state oversight of insurance companies; not to mention the opportunity to shop around for auto insurance quotes from multiple insurers.
On average, the board of appeal has found in favor of the consumer about half of the time, saving drivers thousands of dollars in premium surcharges. The surcharges can appear on their records for up to 6 years!
A bill is currently pending in the state legislature to save the appeal board. As of now it will remain open for several months to deal with its backlog, but no new appeals may be filed after April 1st.
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