MIDDLEBURY, VT. — Co-operative Insurance Companies’ financial strength rating was raised to A ( Excellent) by the insurance industry credit rating organization A. M. Best Company at the end of 2009.
The upgrade comes one year after A. M. Best raised the outlook on Co-op’s previous A- (Excellent) rating, and demonstrates Best’s continued belief in Co-op’s ability to meet its financial obligation to its policyholders.
BOSTON — The Massachusetts Division of Insurance announced that it would allow additional surcharge appeals for drivers that have received recall notices for Toyota vehicles and have been penalized by an at-fault surcharge determination.
ing will have to pay the standard $50 filing fee. Re-hearings will not be subject to an additional charge.
Best based the upgrade on Co-op’s “strong risk-adjusted capitalization, favorable underwriting performance and well-established local market position,” weighed against the competitive, regulatory, and weather challenges of a northern New England market. The rating agency also noted that, for years, Co-op had consistently outperformed the industry composite with its operating results.
“Any driver that has received a Toyota
recall notice and who was involved in
an accident involving a recalled vehicle
that resulted in an at-fault determina-
tion and who had a hearing before the
Board of Appeals in which the insur-
er’s determination was upheld, may
file a request for a re-hearing,” said
the Division. “Any driver that has re-
ceived a Toyota recall notice and who
was involved in an accident involving
a recalled vehicle that resulted in an
at-fault determination, may file for an
appeal before the Board of Appeals, if
one has not been previously filed.”
The expanded hearing process is
going to be limited only to the un-
intended acceleration issue. Toyota’s
safety recall related to problems with
accelerator pedals that can either be-
come entrapped in the floor mat or
stuck. It applied to several Toyota and
Lexus vehicle models, as well as the
Pontiac Vibe.
“The driver will be required to demonstrate that the vehicle involved in the accident is one of the models and types recalled by Toyota and that the accident was related to the acceleration problem outlined in the recall notice. All hearing determinations will be made on a case-by-case basis,” the Division explained.
The Division explained that all re-hearing requests must be filed within 60 days from the notice of the recall, or Jan. 29, the date of the Division’s consumer alert, whichever is later.
The Toyota recall covers model years ranging from 2004 to 2010.
“A. M. Best is very conservative
when it comes to increasing financial
strength ratings,” said Jim Sullivan,
president and chief executive officer
of Co-operative Insurance Compa-
nies. “It takes years of demonstrated
responsible operation and steady
performance to achieve an upgrade.
We are pleased that AM Best’s an-
alysts share our confidence in our
people, programs, direction, and
ability to serve our member policy-
holders.”
Drivers that are filing for a new hear-
The Massachusetts surcharge appeal
process is unique to the Bay State, with
most other states leaving surcharge de-
terminations up to insurers. ■
Advising Independent Insurance Agencies Since 1958
Betro and Company, P.C.
Certified Public Accountants
Insurance Agency Valuation
Co-operative Insurance Companies has been offering farm, home, auto, business, and other insurance to people in Vermont and New Hampshire since 1915. It is owned by its members and committed to protecting them with fast and fair claims service, loss prevention expertise, and local operations. The company has headquarters in Middlebury, Vt., with regional claims offices and more than 50 agencies across Vermont and New Hampshire. ■
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