Insurance agents say auto shift spells doom

“All appointment offers have been based on the performance of the agencies involved,” director of public relations David Hammarstrom said in a statement.

Burnes proposed the changes to the non-voluntary market rule in 2007. But as Webster said, 2007 now seems like light years ago.

“The world we live in today is not the same as it was when this plan was created,” said Webster.

Competition was contentious then, too.

In the early going, the debate focused on rate-setting — specifically, if allowing insurers to set their own rates would benefit consumers by driving down premiums, and if relaxing the regulatory structure would enable insurers to use potentially discriminatory criteria in decisions about covering drivers.

“I wish to remind all that the Commissioner retains broad statutory authority and regulatory powers to take corrective actions should any insurer seek to take advantage of the changed environment,” Burnes wrote in a July 2007 letter.

Those powers relate to the rate-setting changes. Regarding the non-voluntary market, though, Burnes claimed her authority is more circumspect.

When Wasgatt asked her to compel insurers to offer ERPs voluntary-market deals, Burnes said, “I don’t see how I could require companies to give you a contract.”

When Dele Boje of Roslindale’s Boje Insurance Agency suggested reducing down payments for new insurance customers, Burnes said, “These are the rules in CAR, but I can take [the proposal] back to them.”

Other agents asked whether she could change CAR’s rules. Burnes said she could not, but Massachusetts Association of Insurance Agents President Frank Mancini said she could “change the CAR rules on an emergency basis at any time.”

A phone message seeking clarification left with a DOI spokesman was not returned.

Several members of Dorchester’s state legislative contingent expressed concern for their constituents at the meeting.

“This doesn’t seem right to me,” said state Rep. Martin Walsh, who said the changes seemed driven by “companies who wouldn’t come into the state when it didn’t seem profitable.”

“I don’t care about these companies, because they’ve done nothing for us,” he said.

The legislators asked Burnes to consider stalling the April 1 transition date for six months. If she decides to proceed, Hart referenced “a number of mechanisms on the legislative side” that could force a delay. A phone message seeking elaboration left with a Hart aide was not returned.

After the meeting, state Rep. Marie St. Fleur emphasized a point made by many agents — the problem isn’t competition, but rather the way it’s being implemented.

“I don’t think anyone in that room was saying that they didn’t want a competitive system,” she said. “But should the platform with which we create competition be one that puts Massachusetts businesses out of business?”

Whether or not it should, Theodat said she believes it will.

“Within a year, I guarantee that everyone in this room will be out of business,” she said. “And if there are some that aren’t, they’re going to be well on their way.”

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