Budget Amendment ID: FY2018-S3-41

OTH 41

Protecting Consumers Through an Update to Betty's Law

Mr. Montigny, Ms. L'Italien, Messrs. Brownsberger and McGee, Ms. Gobi, Messrs. Moore and Tarr and Ms. Lovely moved that the proposed new text be amended by inserting after section____ the following 2 sections:-

“SECTION___.  Chapter 175 of the General Laws is hereby amended by inserting after section 113B the following section:-

SECTION 113B1/2.  For an at-fault accident claim, a minor accident shall be an accident for which the claim payment, exclusive of any deductible, exceeds $1,000 but is not more than $5,000 under: (i) property damage liability coverage; (ii) collision coverage; (iii) limited collision coverage; (iv) for accidents occurring on or after January 1, 2006, bodily injury liability coverage if there is neither a surchargeable property damage liability coverage claim nor a surchargeable collision coverage claim; or (v) as a result of an accident with a bodily injury liability coverage claim. For an at-fault accident claim, a major accident shall be an accident for which the claim payment, exclusive of any deductible, exceeds $5,000 under: (A) property damage liability coverage; (B) collision coverage; (C) limited collision coverage; (D) for accidents occurring on or after January 1, 2006, bodily injury liability coverage if there is neither a surchargeable property damage liability coverage claim nor a surchargeable collision coverage claim; or (E) as a result of an accident with a bodily injury liability coverage claim. No motor vehicle liability policy, as defined by section 34A of chapter 90, shall apply an increase in premium as a result of an at-fault accident that does not satisfy the criteria for a minor or major accident.  For purposes of this section, “premium” shall mean the cost of a policy, or coverage within a policy, to an individual policyholder based on the particular drivers and motor vehicles insured under the policy.

SECTION____.  Subsection (d) of section 4 of chapter 175E of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by adding the following sentence:- For motor vehicle insurance rates, no increase in premium charges shall be applied due to an at-fault accident that does not satisfy the criteria for a minor or major accident as defined by section 113B1/2 of chapter 175 of the General Laws.”.