In a little bit of news that was never mentioned during the rush towards competitive automobile insurance in Massachusetts was the companies demand that the Merit Rating Appeals Board be ended. The thinking was that the companies are now setting their own rates and penalties for bad drivers, the state no longer needs to maintain the board that hears surcharge appeals from the insurance consumer. The companies would set up their own surcharge appeal boards to hear their policyholders appeals on accidents.
The state board was an independent board that heard consumers appeals, since the state had previously determined the surcharge fees. Consumers have had the ability to appeal surcharges based upon the rules of the road and the state's rules on determining fault. Appeals saved as much as $8 Million in surcharges last year.
The rules on fault determination now will depend on the percentage of fault. The company that paid your claim and assesses the surcharge on your automobile policy will also determine your fault on appeal. This seems to lack the balance of power that the consumer had with the old system.
It a ruling last week, the Insurance Commissioner decided to maintain the Merit Surcharge board. So chalk one up for the consumer for now.