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(EMAILWIRE.COM, May 24, 2011 ) Boston, MA -- The Massachusetts Division of Insurance is being urged by the stateÂ’s attorney general, Martha Coakley, to conduct a comprehensive review of commercial car coverage rates. Coakley says auto insurance companies in the state have had premium-to-loss ratios between 2004 and 2010 that were significantly higher than that of commercial insurers nationwide.
Coakley’s office characterized commercial coverage rates in the state as being “excessive” to the point where action is necessary of the commissioner. In a letter to the commissioner, her office notes that, during the seven-year period between 2004 and 2010, the state’s insurers’ loss ratios have been less than 50 percent. That means that less than half of the business premiums collected by insurers have gone to pay for claims.
“Commercial automobile insurers in Massachusetts have kept more of policyholders' premium — and provided substantially less in benefits to Massachusetts businesses — than insurers in other states,” the office alleges.
Source: http://1.usa.gov/m2HdX7
The high rates have led Massachusetts businesses to pay “about $834 million more than comparable businesses nationwide during the 2004 through 2010 period,” according to an analysis of data from the National Association of Insurance Commissioners conducted by the office.
Further, CoakleyÂ’s office says that the issue is spread throughout the state market, meaning that businesses cannot effectively cut costs by shopping around.
Whether Commissioner Joseph Murphy will take the attorney generalÂ’s recommendation remains to be seen. His office had not issued a public statement on the matter as of Monday afternoon. MurphyÂ’s office did not take the attorney generalÂ’s recommendation in February to reject a commercial rate increase proposed by a specific provider.
To learn more about this and other car insurance issues, readers can go to http://www.onlineautoinsurance.com/companies/ where visitors will have access to informative resource pages and a quote-comparison generator that can help them find the best prices for a quality policy.
Online Auto Insurance, LLC
Benjamin Zitney
909-784-2475
ben@onlineautoinsurance.com 
Source: EmailWire.com
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