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Insurers, consumer advocates clash over PIP reforms and insurance surcharge points at State House hearing
Summary
Industry witnesses urged the Legislature to pass House Bill H1088 to limit incentives for bulk PIP suits; another bill, H1197, would prevent surcharges for low-damage accidents. Insurers said pervasive bulk lawsuits are clogging district courts and raising premium indicators; consumer advocates' testimony was limited at the hearing.
Representatives of insurers and trade associations pressed the joint hearing to act on legislation they say would curb a surge of no-fault personal injury protection (PIP) lawsuits and prevent insurers from increasing surcharge points for minor-damage accidents.
Christopher Stark, executive director of the Massachusetts Insurance Federation, urged support for House Bill H1088, describing it as a return to "the legislative intent of our statutory scheme for personal injury protection." Stark said the bill would require insurers to tender amounts due within 30 days after service of a complaint without becoming liable for attorneys' fees, a change he said would deter the development of a "cottage industry for payment…
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