COMMERCE SUES OVER AUTO PLAN:

The Commerce Insurance Company has filed an action in Massachusetts Superior Court, Suffolk County, in response to the rules published by the Division of Insurance for a new automobile residual market system. Commerce is asking the court to determine whether the rules for the new Massachusetts Assigned Insurance Plan are consistent with existing Massachusetts laws. Commerce officials have raised concerns that the rules of MAIP may violate several laws, including the state’s “take-all-comers” law and another law prohibiting insurers from notifying policyholders of their placement in the residual market. The insurer has also protested a new ban against placing certain members of groups given discounts in the residual market. Commonwealth Auto Reinsurers, the governing body for the residual market, has agreed to intervene with the insurance department in defense of the MAI and against Commerce.