At the April 20, 2011 CAR Governing Committee Meeting, CAR President Ralph Iannaco announced that three new carriers are now eligible for assignments through the MAIP, the Massachusetts Automobile Insurance Plan.
Occidental Fire and Casualty, Geico and Bankers Standard Insurance Company are now eligible for assigned risk assignments through the MAIP.
Both Occidental and Geico were not eligible for assignments under the two-year moratorium initially imposed for new carriers entering the state in 2008 and which was abolished by the Legislature in 2010. Bankers Standard, an ACE company, filed its rates under the new system established in 2010. MAIP staff will be determining the assignment ratios for these companies but Mr. Iannaco stated that Occidental would not be eligible for assignments based upon its existing credits.
Occident Fire and Casualty is a North Carolina based insurance agency that is rated an A- by Am Best. Presently, Occidental has only one agent appointed in Massachusetts, A Affordable Insurance Agency. This agency has a large presence in credit worthy territories.
Geico, is a direct writer of automobile insurance, which is a wholly-owned subsidiary of Berkshire Hathaway and has a A++ rating from A.M. Best.
Bankers Standard Insurance Company is a Fire & Casualty insurance company, based in Philadelphia and offers auto, health, home, boat, airplane and business insurance.
Commonwealth Automobile Reinsurers is the industry operated residual market and statistical agent for motor vehicle insurance in the Commonwealth of Massachusetts. In 2008, managed competition was introduced to the Commonwealth with the MAIP, thereby replacing the formed assigned risk plan in operation. Under managed competition, insurers set their own prices for auto insurance rather than the Commissioner of Insurance.
