Burnes is Keeping Appeals Board

Massachusetts State Insurance Commissioner Nonnie Burnes had decided that it was in the state and its residents’ best interests to abolish the board that handles appeals of those at fault auto insurance surcharges. She felt that she could save money for the state by having those with issues with the charges going directly to the auto insurance companies themselves and would do so starting April 1st. However, it seems that she has changed her mind.

Burnes said that her move to abolish it was to be reversed, and that according to public concerns she needed to keep the board. She found that many of those against the move felt that the auto insurance companies could not be objective, whereas a board handling the claims could be. They said that the auto insurance companies would be ruling on charges that they were putting forth, and therefore could not be impartial in their decision to keep or remove the charges.

About half of the appeals that the board hears are currently in favor of the consumer instead of the auto insurance company. They felt that this number would drastically change because they could not be expected to rule against themselves. Burnes thought that the plan would help consumers and the state at the same time, but upon hearing the concerns from the public she felt that it was necessary to put their fears at rest and allow the appeals board to stay.

She says that it was not her intention to worry consumers and leave it up to the auto insurance industry. She thought that they would be able to have a fair resolution, but this seems to not be the way that consumers are looking at it. She says that it is more important that auto insurance consumers have confidence than anything else.





Back to April 2009 Archives