Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately control automobile insurance rates, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. The first paragraph of section 113B of chapter 175 of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by inserting after the first sentence the following three sentences:-
The commissioner upon the basis of information which shall be filed by the Massachusetts Automobile Rating and Accident Prevention Bureau or any successor organization thereto, shall determine whether insurance companies utilize adequate programs to control costs and expenses, in accordance with standards determined or approved by the commissioner. At a minimum, such programs shall be designed to have a material impact on premium charges by reducing costs and expenses incurred by insurance companies. In the event the Massachusetts Automobile Rating and Accident Prevention Bureau fails to make such filing, or if the commissioner determines that the filing is deficient or that the programs are inadequate, the commissioner shall limit in any manner he determines to be appropriate the amount of any adjustment in premium charges based upon changes in costs and expenses.
SECTION 2. The commissioner of insurance shall notify the general court by filing a report with the clerk of the house of representatives who shall forward such report to the senate and house committees on ways and means and the joint committee on insurance of the savings realized by the programs set forth in section one of this act; said report shall be filed as of January first, nineteen hundred and eighty-eight.
SECTION 3. The commissioner of insurance shall be required to employ a qualified actuary for the purpose of implementing the provisions of section one hundred and thirteen B of chapter one hundred and seventy-five of the General Laws.