House of Representatives Unanimously Passes Legislation to Preserve the Division of Insurance Board of Appeals

Action Would Codify Independent Board into Massachusetts Statute

April 2, 2009

BOSTON – Rep. Bradley announced that the House of Representatives has approved legislation that will maintain an independent appeals board for consumers to appeal fault for auto accidents.  The legislation, approved 157 – 0, comes on the heels of the Division of Insurance reversing their previous decision to do away with the appeals board.

“It is vitally important that we preserve the right of consumers to dispute these insurance surcharges in a forum where individuals can present evidence and offer testimony,” said Rep. Bradley.  “This issue speaks to a fundamental concept of our laws and constitution, and the defense of due process of law.”

The bill would create, via statute, a motor vehicle surcharge Board of Appeals.  This would ensure that the current Board of Appeals remained an option for any driver to appeal what they believe was a wrongful determination of a surchargeable incident due to an at-fault accident.

Each year, the Division of Insurance Board of Appeals hears between 40,000 and 50,000 appeals from motorists.  Of those, between 45-50% of all appeals are overturned.  This accounts for a savings of a minimum of $400 a year for an individual policy holder and thousands of dollars for family policy owners, totaling a cost savings of $25-$40 million for consumers annually.

The bill now heads to the floor of the Senate, which previously gave initial passage to the bill.