Massachusetts S703 aims to reduce racial and socioeconomic inequities in auto insurance premium pricing.

Massachusetts S703 amends Chapter 175E of the General Laws to address racial and socioeconomic inequities in auto insurance premium pricing. The bill mandates that insurers use a balanced approach when assigning weights to territorial loss costs and statewide average loss costs in their rating plans. It requires insurers to assign no more than 75% weight to individual territorial loss costs and no less than 25% to the statewide average loss costs.

Massachusetts S703 aims to reduce racial and socioeconomic inequities in auto insurance premium pricing.

Massachusetts S703 amends Chapter 175E of the General Laws to address racial and socioeconomic inequities in auto insurance premium pricing. The bill mandates that insurers use a balanced approach when assigning weights to territorial loss costs and statewide average loss costs in their rating plans. It requires insurers to assign no more than 75% weight to individual territorial loss costs and no less than 25% to the statewide average loss costs.