The Governing Committee voted to uphold the decision of the Market Review Committee.
The Calianos Insurance Agency, a stalwart of Roxbury for over 50 years, has lost its appeal to reinstate its taxi and commercial automobile Servicing Carrier agreement with the Safety Insurance Company. An additional motion made during the Governing Committee meeting to amend the decision of the Panel to allow the agency 45 days to service in force policies also failed on a vote of seven opposed, four in favor, and with two recused.
On September 11, 2012, the Governing Committee Review Panel met to review Mr. Calianos’ request for relief. The Governing Committee Review Panel, a revolving three person subcommittee of the Governing Committee, is “…charged with the responsibility of reviewing the appeals made by Member Companies and licensed producers aggrieved by any alleged unfair, unreasonable, or improper practice of CAR or a Member with respect to the operation of CAR.”
The Safety Insurance Company issued a notice of termination to the Calianos Agency citing violations of CAR Rule 13.B.2.a., “failure to remit payments to a Servicing Carrier on a timely basis,” Rule 13.B.2.f., “failure to comply with reasonable procedures of the Servicing Carrier for remitting premium,” and Rule 15, “the producer shall remit premium payments in accordance with the contract signed with the Servicing Carrier.” The Calianos Agency responded by admitting that it had had agency problems in 2010 and early 2011 but that the issues had been rectified by implementing several operational changes to the agency as of April 1, 2011.
While the Governing Committee upheld the Review Panel’s decision, the agency has the right to appeal the Governing Committee’s decision to the Division of Insurance within thirty days. The president of the agency, Jason Calianos, who is also the current head of the Massachusetts Urban Agents Association, did not indicate whether the agency would appeal.
Read a copy of the official CAR Governing Committee Review Panel transcript here.
