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Governor Patrick Signs Assigned Risk Commission Bill Into Law

August 9, 2010 by AC Editor

Governor Patrick has signed into law a bill granting producers in the Massachusetts Auto Insurance Plan (MAIP) commissions on assigned risk policies written voluntarily by assigned risk carriers.  The signing of the bill overrules the Commissioner of Insurance’s decision not to allow producers these commissions and also reverses the Supreme Judicial Court decision that upheld the Commissioner’s denial of such commissions.

Under the terms of the new law all producers writing assigned risk policies through the MAIP will now be paid commissions even if the assigned carrier decides to remove the policy from the MAIP and write it voluntarily. The Commissioner had disapproved several previous proposed rule changes of the MAIP that would have required assigned risk carriers to recognize the producers’ rights to a commission.
Under the new law, the commission payable is the MAIP commission rate required by the MAIP enabling statute.

As the new law had no emergency preamble making it effective immediately, it will take effect ninety days from August 4th, or on November 4, 2010.

If you would like to learn more or have any questions or concerns on how this bill may affect your Massachusetts insurance agency or would otherwise like to discuss any other potential legal issues please contact Owen Gallagher on his direct line at 617.598.3801.

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