March 11, 2008
Coakley: Plan UnFAIR To Homeowners
Attorney General Martha Coakley is contesting a rate hike for homeowners covered by the state's insurer of last resort, saying the proposed rates are inflated.
The FAIR Plan is intended to provide insurance in areas the private market does not cover. The proposed new rates would represent an average increase of 13.6 percent across the state, and a 25 percent hike for Cape Cod, New Bedford and Fall River. Rates for the Cape rose 25 percent last year.
In a brief filed with the state Division of Insurance , Coakley argues that the new rates are based on a model that predicts more severe hurricanes than Massachusetts has ever encountered. She also claims that the rates are intended to push the plan's prices above the rest of the market.
FAIR Plan was created by the state and is operated jointly by private insurers who sell homeowners coverage in the state. The Commissioner of Insurance oversees the rate-setting process.
The FAIR Plan is intended to provide insurance in areas the private market does not cover. The proposed new rates would represent an average increase of 13.6 percent across the state, and a 25 percent hike for Cape Cod, New Bedford and Fall River. Rates for the Cape rose 25 percent last year.
In a brief filed with the state Division of Insurance , Coakley argues that the new rates are based on a model that predicts more severe hurricanes than Massachusetts has ever encountered. She also claims that the rates are intended to push the plan's prices above the rest of the market.
FAIR Plan was created by the state and is operated jointly by private insurers who sell homeowners coverage in the state. The Commissioner of Insurance oversees the rate-setting process.
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