INSURERS OPPOSE POLICE LEVY:

May 9, 2005

State regulators and auto insurance companies doing business in Massachusetts are opposed to a legislative proposal that would impose $15 million in new surcharges on insurers to pay for police training. Insurance companies say the new fee would likely be passed on to consumers and would drive more companies out of a state already seen as inhospitable to their industry.

“The amount we commit to the tax revenue and additional assessments in the Commonwealth of Massachusetts probably exceeds any other regulated industry,” said James Harrington, executive director of the Massachusetts Insurance Federation.

The bill, sponsored by Rep. Thomas Petrolati, D-Ludlow, would require companies to pay a charge equal to one quarter of one percent of all premiums collected. It was filed in response to complaints by Massachusetts police chiefs, who say state budget cuts have left departments without training and forced some officers to pay $2,300 out of pocket for mandatory basic training.