Massachusetts Department of Insurance
National Association of Insurance Commisioner’s
Life Insurance Rates News Release: 1/17/2005
Category: Life Insurance Rate Enforcement
Washington, DC – A federal judge today ruled in favor of the
National Association of Insurance Commisioners and its efforts to recoup more than $100 million for life insurance consumers nation wide, an amount which the agency contends that a select few insurance companies may have overcharged life insurance consumers by inflating
Massachusetts life insurance prices and
Massachusetts life insurance
quotes.
The federal judicial panel and courts actions allows the NAIC to help reduce
Massachusetts life insurance
rates. The objective of NAIC staff throughout this action has been to provide life insurance rate relief for life insurance consumer policyholders who have been charged excessive life insurance rates.
NAIC staff, using authority granted by the federal judicial panel’s decision, ordered life insurance companies to reduce its life owners rates by 12 percent in September 2004.
Massachusetts life insurance companies appealed the reduction in district court, claiming that the they had been denied due process in ordering the rate reduction.
“NAIC staff’s latest action, based on a different law was designed to address the court’s concerns regarding due process,” said NAIC’s Deputy Commissioner for Policy. “Despite the insurance companies objections, the courts have allowed the debate based on the facts to move forward. In the end we believe the facts will show that their rates can be reduced.”
NAIC staff contends that life insurance companies have been overcharging its policyholders since June 11, 2003, the effective date of Senate Bill 14. NAIC is seeking a refund of the excessive premium plus 10 percent interest. The total amount will be calculated from June 11, 2003, to present.
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Massachusetts Facts:
The colony was named after the indigenous population, the Massachusett, whose name means "a large hill place". The Pilgrims established their settlement at Plymouth in 1620, arriving on the Mayflower. They were soon followed by the Puritans, who established the Massachusetts Bay Colony. Massachusetts was one of the thirteen colonies that revolted against British rule in the American Revolution. Massachusetts is bordered on the north by New Hampshire and Vermont, on the west by New York, on the south by Connecticut and Rhode Island, and on the east by the Atlantic Ocean.
The islands of Martha's Vineyard and Nantucket lie off the southeast coast. Boston is the largest city; however, most of the population of the Boston metropolitan area (approximately 5,800,000) does not live in the city.
Massachusetts is known as the Bay State because of the several large bays that give its coastline its distinctive shape: Massachusetts Bay and Cape Cod Bay on the state's east coast, and Buzzards Bay to the south. A few cities and towns on the Massachusetts–Rhode Island border are also adjacent to Narragansett Bay. The Commonwealth of Massachusetts has a total of 50 cities and 301 towns, grouped into 14 counties.
Massachusetts cities and towns of historical or cultural importance include: Amherst, Barnstable, Boston, Cambridge, Concord, Fall River, Lawrence, Lexington, Lowell, Lynn, New Bedford, Newton, Northampton, Pittsfield, Plymouth, Provincetown, Salem, Springfield, Taunton and Worcester.
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