House of Representatives Unanimously Passes Legislation to Preserve the Division of Insurance Board of Appeals

Action Would Codify Independent Board into Massachusetts Statute

BOSTON - The House of Representatives approved legislation that will maintain an independent appeals board for consumers to appeal fault for auto accidents. The legislation, approved 157 - 0, comes on the heels of the Division of Insurance reversing their previous decision to do away with the appeals board.

"After hearing from a large number of my constituency who supported this bill I am glad to have played an intricate role in ensuring the appeals process now and for the future. This legislation is a great example of how we are protecting consumers by guaranteeing motorists the right to appeal an insurance surcharge to an impartial board," said Representative John P. Fresolo (D-Worcester).

The bill would create via statute, a motor vehicle surcharge Board of Appeals. This would ensure that the current Board of Appeals remained an option for any driver to appeal what they believe was a wrongful determination of a surchargeable incident due to an at-fault accident.

Each year, the Division of Insurance Board of Appeals hears between 40,000 and 50,000 appeals from motorists. Of those, between 45-50% of all appeals are overturned. This accounts for a savings of a minimum of $400 a year for an individual policy holder and thousands of dollars for family policy owners, totaling a cost savings of $25-$40 million for consumers annually.

The bill now heads to the Senate floor for final consideration, which previously gave initial passage to the bill.