Budget Amendment ID: FY2027-S4-819

OTH 819

Addressing Discriminatory Territorial Rating in Automobile Insurance

Ms. Miranda moved that the proposed new text be amended by inserting after section ___ the following section:-

“SECTION ___. (a) There shall be established a special legislative commission pursuant to section 2A of chapter 4 of the General Laws to conduct a comprehensive study and provide recommendations to the legislature relative to the use of territorial rating factors in the calculation of automobile insurance premiums. The special legislative commission shall be authorized to expend any funds appropriated to said special legislative commission.

(b) The special legislative commission shall be comprised of: the chairs of the joint committee on financial services, who shall co-chair the commission; 1 member appointed by the president of the senate, who shall also be a member of the Massachusetts Black and Latino Legislative Caucus; 1 member appointed by the speaker of the house of representatives, who shall also be a member of the Massachusetts Black and Latino Legislative Caucus; the attorney general, or a designee; the commissioner of insurance, or a designee; the executive director of the Massachusetts Insurance Federation, or a designee; the executive director of the National Consumer Law Center, or a designee; and the research and advocacy associate of the Consumer Federation of America, or a designee.

(c) The special legislative commission shall investigate and study: (i) the use of zip code, garaging location and geographical area in setting automobile insurance rates or coverage decisions in the commonwealth; (ii) other factors that may be used in rating that are potentially discriminatory in nature; (iii) the impact on automobile insurance premiums from restricting the use of zip code, garaging location and geographical area in automobile insurance rates; (iv) how automobile insurance rates are calculated; and (v) any other matters the commission deems relevant to providing recommendations to the legislature.

(d) The special legislative commission shall submit a report of its findings and recommendations, including recommendations for legislation, if any, by filing the same with the clerks of the senate and house of representatives not later than July 1, 2027.”