Published Since 1865 Boston, Mass. February 3, 2012 Vol. 270 No. 5

Consumer Group Asks for “Fairness” in
Auto Premiums for Lower-Income Families

Asks Regulators to Reduce Discrimination; Industry Says Recommendations Will Only Add Costs

NEW YORK CITY — The insurance industry reacted quickly and negatively to a recommendation from the Consumer Federation of America (CFA) that state insurance regulators do more to ensure that personal automobile insurance is affordable, especially for lower to moderate income families.

CFA Executive Director Stephen Brobeck and Director of Insurance J. Robert Hunter announced a study this week that they say illustrates the difficulties low- and moderate income households have in accessing jobs and maintaining vehicles because of the high cost of insurance.

“In some areas, many responsible lower-income drivers are required to spend more than $1,000 a year for liability coverage that is often unfairly priced and provides no real insurance protection to them,” said CFA’s Brobeck.

“State insurance commissioners have the ability to take steps that would equitably reduce auto insurance costs for responsible lower-income drivers, thus increasing access to car ownership and employment in a difficult economic environment,” said Hunter.

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Having a vehicle means having to pay for insurance and

Agency Compensation To
Increase In 2012, Says Ward

In This Issue Council Sees Continued Rise in 4th Quarter Prices

Mass. Council Offers Advice for Comp System

CINCINNATI, OHIO –– Contingent commission payouts are estimated to be 12% higher this year than in 2011, an Agency Compensation and Management Practices study of property-casualty insurance companies by Ward Group found. Ward Group provides benchmarking and best practices research studies for insurers.

Vt. CPCU Panel Discusses Challenges

N.H. Dept. Issues Bulletin on “Prompt Pay” Programs

Tort Costs See Changes, Says Towers Watson

“For most property-casualty insurance companies, expenses relating to the distribution system represent the largest expense component outside of loss pay-

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Conn. Extends Licensing Deadline 11

R.I. Sends Alert on Electronic Filing 11

Construction Market in for Changes – Report

Patrons Oxford Has New President 14

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