February 8, 2010
The Honorable Dereck E. Davis
Economic Matters Committee
Room 231, House Office Building
Annapolis, MD 21401-1912
Dear Delegate Davis:
HB27 would limit the number of territories an insurer may use in establishing automobile insurance rates to three under provisions of law governing prior approval rate making and competitive rating. In addition it would require the Maryland Insurance Commissioner to adopt regulations establishing the territories an insurer may use in establishing automobile insurance rates, and require the territories established to include an urban territory and a rural territory.
The Legislative Committee of the Carroll County Chamber of Commerce opposes this bill. With fewer territories, the insurance companies will use much broader criteria when determining pricing for individuals. This will result in higher prices for the average customer.
We therefore ask that your committee give this bill a negative report.
Sincerely,
Richard Haddad
President
CC: Senator Larry E. Haines