P&CMAmedium
Which statement best describes the 2008 reform of Massachusetts private passenger automobile rate regulation?
DOI replaced its longstanding fix-and-establish single-rate regime with managed competition under c. 175E, allowing each insurer to file its own rates
BThe Legislature eliminated all DOI auto rate review and adopted pure open competition, leaving every insurer free to charge any premium with no filing requirement
CFederal regulators took over MA auto rate-setting
DDOI began setting all final premiums uniformly for every MA driver
Why this is the answer
Effective April 1, 2008, the DOI replaced Massachusetts' longstanding 'fix-and-establish' single-rate system — under which the Commissioner set a uniform set of private passenger auto rates used by every carrier — with managed competition under M.G.L. c. 175E. Each insurer now files its own rates subject to DOI review. The Legislature did not adopt open competition or transfer authority to federal regulators.
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