An Act establishing a commission to investigate auto insurance discrimination

194th Legislature (2025-2026) Introduced by Liz Miranda and 1 co-sponsor

A temporary commission will study how geographic factors like ZIP codes affect auto insurance rates in Massachusetts and issue recommendations, possibly including legislation, by J

Bill reported favorably by committee and referred to the committee on Rules of the two branches, acting concurrently

1. Purpose and Intent

Establishes a special legislative commission to conduct a comprehensive study of the use of territorial rating factors (such as geographic location) in setting automobile insurance premiums in Massachusetts.

The commission will study whether current practices contribute to discrimination or inequities and provide recommendations, including potential legislation, to address any findings.

2. Key Provisions and Changes

Establishment and Scope

Creates a special legislative commission under section 2A of chapter 4 of the General Laws.

The commission is authorized to expend funds appropriated to it.

Membership

The commission will be chaired by the chairs of the Joint Committee on Financial Services (co-chairs).
Additional members include:
- 1 member appointed by the Senate President (also a member of the Massachusetts Black and Latino Caucus)
- 1 member appointed by the House Speaker (also a member of the Massachusetts Black and Latino Caucus)
- Attorney General (or designee)
- Commissioner of the Division of Insurance (or designee)
- Executive Director of the Massachusetts Insurance Federation
- Executive Director of the National Consumer Law Center
- Research and Advocacy Associate of the Consumer Federation of America

Topics for Investigation

The commission will study:
1. The use of ZIP codes, garaging location, and geographical area in setting auto insurance rates or coverage decisions in Massachusetts.
2. Other factors that may be used in rating that could be discriminatory.
3. The impact on premiums from restricting the use of ZIP codes, garaging location, and geographical area in rates.
4. How automobile insurance rates are calculated.
5. Any other areas relevant to providing recommendations to the legislature.

Reporting and Timeline

The commission must submit a report of its findings and recommendations, including proposed legislation if any, to the clerks of the Senate and House no later than July 1, 2027.

3. Who Would Be Affected

Auto insurers operating in Massachusetts, as the bill examines rating practices and potential regulatory changes.

Policyholders and consumers who pay auto insurance premiums, particularly those in areas where geographic rating factors are used.

State policymakers, regulators (Attorney General and Division of Insurance), and consumer advocacy groups engaged in insurance fairness and anti-discrimination efforts.

4. Procedural and Timeline Details

Formation: The commission is a temporary, special legislative body established for a study.

Duration: Needs to complete its study and file a final report by July 1, 2027.

Funding: The commission can expend funds appropriated to it.

Reporting: Final findings and any recommended legislation to both chambers’ clerks by the deadline.

5. Additional Context

The bill references prior related proposals (Senate Nos. 790 and 820) focused on eliminating geographic auto insurance discrimination and reducing racial and socioeconomic inequities in premium pricing, indicating alignment with ongoing concerns about discrimination in auto insurance pricing.

The bill does not itself change current rating practices but initiates a formal, data-driven review with potential legislative recommendations.

If you’d like, I can provide a one-page briefing with talking points for policymakers or a comparative analysis with similar state-level actions.

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