Massachusetts: Legislative Session Ends with No Action on Coastal Property Legislation

The Massachusetts Legislature ended its formal session on July 31 with no action on the top issue for property/casualty insurers, legislation responsive to the coastal property insurance market situation.

Enactment of legislation in some form was considered likely right up until the end of the session, since the issue had been identified as a priority of the Patrick administration and Senate leadership. In addition, key House members were seen as supportive of getting something passed in recognition of the time and resources that had been devoted to the issue through the work of a special commission that held a listening tour last summer and developed a report with a comprehensive list of policy recommendation.

The Senate passed a version that differed in material ways from a draft approved by the Joint Legislative Committee on Financial Services, but the House did not approve a bill in the final days of the session.

“Each version of the legislation considered contained troubling provisions, so the failure to enact a bill prior to the end of the formal session may be viewed as a positive development,” commented Paul Tetrault, Northeast state affairs manager for NAMIC. “However, there has been a consistent concern among industry representatives that consumer and community activist pressure could result in extremely onerous and restrictive legislation. The bottom line is this remains an unresolved issue that is viewed by many as requiring legislative action.”

NAMIC worked closely with the Massachusetts Insurance Federation and other industry representatives on the property insurance issue during the course of the session. NAMIC provided testimony to the Financial Services Committee commenting on various legislative proposals as well as proposals generated by the special commission.

Tetrault noted that the close of the formal session was an appropriate time to take note of the fact that despite a high level of concern among some prominent legislators, there was ultimately no legislative action in response to the historic transition to competition in the state’s private passenger auto insurance system.

“This was a session in which what didn’t get done was far more significant than what did get done,” he commented.

Direct questions to NAMIC State Affairs Manager Paul Tetrault.

Posted: Tuesday, August 12, 2008 12:00:00 AM. Modified: Tuesday, August 12, 2008 10:03:56 AM.

Salary Survey: Data by Size, Region, and More

(317) 875-5250 - Indianapolis | (202) 628-1558 - Washington, D.C.

Contact NAMIC | Press | Advertise | Sponsor

We are 1,400 property/casualty insurance companies serving more than 135 million auto, home and business policyholders, with more than $196 billion in premiums accounting for 50 percent of the automobile/homeowners market and 31 percent of the business insurance market. We are the largest and most diverse property/casualty trade association in the country, with regional and local mutual insurance companies on main streets across America joining many of the country’s largest national insurers who also call NAMIC their home. More than 200,000 people are employed by NAMIC members.