FOR IMMEDIATE RELEASE
MMA Update: AGO reaches agreement with 4 additional insurance carriers for MA Motorcyclists
02 March 2010
The Massachusetts Motorcycle Association (MMA) is pleased to inform its membership and all motorcycle owners today that the Massachusetts Attorney General’s Office (AGO) has reached agreement with 4 additional insurance carriers bringing the total benefit returned to Massachusetts Motorcyclists to $20 million:
http://www.mass.gov/?pageID=cagopressrelease&L=1&L0=Home&sid=Cago&b=pressrelease&f=2010_03_02_motorcycle_insurance&csid=Cago
Announced today by the AGO, the agreements represent another 4 insurance carriers totaling $9M in refunds due Massachusetts Motorcyclists. In addition to the $11.1 million previously reported in early January, this brings the total to 7 Insurance Carriers and will return over $20 million to Massachusetts motorcyclists, stemming from an investigation that the AGO began over a year ago in response to a complaint filed with the AGO’s Insurance & Financial Services Division.
The additional carriers are Plymouth Rock Assurance, Pilgram Insurance, USAA, and Metropolitan Property & Casualty. The AGO has promised to continue to fight for MA Motorcyclists by assuring that all Insurance Companies who provide coverage in Massachusetts are scrutinized. Since the initial settlement with Liberty Mutual, Quincy Mutual, and Safety Insurance Company, the MMA has been working closely with the AGO to assure that all motorcyclists who are due refunds are located and properly informed.
“We are pleased that the settling insurance companies cooperated with our investigation and have agreed to return the overcharges to Massachusetts motorcycle riders,” said Attorney General Coakley. “However, it is inexcusable that these companies systemically overcharged their customers on such a large scale. These cases underscore the need for transparency in auto insurance rating. Consumers and regulators need access to information showing how premiums are supposed to be calculated so that practices like this one can be uncovered and corrected.”
Much confusion followed the initial release with some concerned riders advising people to contact their insurance agent or broker. Unfortunately, while good intentioned, the correct procedures were not communicated. The AGO is working closely with the MMA who are acting on behalf of Massachusetts Motorcyclists to assure that we reach as many effected motorcycle owners as possible. As a result, the MMA initiated a response line, MyRefund@MassMotorcycle.org and provided information concerning hotlines directly to the Insurance Carriers to assure that any questions can be expediently handled and that riders due refunds can be located.
MMA Member Robert “Obie” O’Brien, wrote, “If I have one thing to say to the riders across Massachusetts is, know your insurance policy and either call the AGO or write the MMA with your bike make and model, VIN# and the years you were insured with any of the insurance companies named in the action. I know because I got curve-ball answers and my agent does not even want to answer the phone when I call! The more riders who contact the AGO and MMA, the better off we will be treated now and in the future.”
Although these agreements require the Insurance Carriers to locate their customers, motorcyclists who carried either collision and/or comprehensive insurance policies with any of these 7 companies since 2002 are encouraged to send their contact information (past and current if changed since 2002), the name of the insurance company, and information concerning the covered motorcycle(s) to MyRefund@MassMotorcycle.org, or to contact the Insurance Companies directly via their hotline numbers as published on the MMA website.
The agreements with the Insurance Carriers cover alleged overcharges going back to 2002 and require the insurers to pay 6 percent interest to consumers. Average refunds to consumers are anticipated to be approximately $300 with some consumers receiving potentially thousands of dollars. Tens of thousands of policies are believed to have been affected.
For further details, please visit http://www.massmotorcycle.org or contact SafetyDirector@MassMotorcycle.org