211 CMR 79.03 - Competitive Market
Current through Register 1466, April 1, 2022
(1)
Presumption. A Competitive Market is presumed to exist
unless the Commissioner, after a hearing pursuant to M.G.L. c. 175E, § 5,
determines that competition in the private passenger motor vehicle insurance
market is, with respect to any territory or to any kind, subdivision or class
of insurance, either:
(a) insufficient to
assure that Rates will not be excessive; or
(b) so conducted as to be destructive of
competition or detrimental to the solvency of Insurers, and the Commissioner
issues findings of fact, conclusions and orders to that effect. Any such
determination shall expire no later than one year after issuance.
(2)
Standard. In determining whether competition, with
respect to any territory or to any kind, subdivision or class of insurance, is
either:
(a) insufficient to assure that Rates
will not be excessive; or
(b) so
conducted as to be destructive of competition or detrimental to the solvency of
Insurers, the Commissioner shall consider relevant tests of workable
competition pertaining to market structure, market performance and market
conduct and the practical opportunities available to consumers in the market to
acquire pricing and other consumer information and to compare and obtain
insurance from competing Insurers. Such tests may include, but are not limited
to, the following: size and number of Insurers actively engaged in the market;
market shares and changes in market shares of Insurers; ease of entry and exit
from the market; underwriting restrictions; whether profitability for Insurers
generally in the private passenger motor vehicle insurance market is
unreasonably high; availability of consumer information concerning the product
and sales outlets or other sales mechanisms; and efforts of Insurers to provide
consumer information.
(3)
Monitoring
Competition. The Commissioner shall monitor the Competitive
Market. The Commissioner shall utilize existing relevant information,
analytical systems and other sources; cause or participate in the development
of new relevant information, analytical systems and other sources; or rely on
some combination thereof. Such activities may be conducted internally within
the Division, in cooperation with other state insurance departments and/or the
National Association of Insurance Commissioners, through outside contractors
and/or in any other appropriate manner.
(4)
Hearing. The
Commissioner may at any time, with 21 days notice to the public, hold a hearing
under M.G.L. c. 175E, § 5, to determine whether the Competitive Market is
meeting the requisite statutory requirements under M.G.L. c. 175E, §
5.
Notes
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