Progressive Direct Insurance Co., which has long compared its rates to competitors, agreed to pay the state $120,000 to settle charges that it inflated the rates for rival companies, Massachusetts Attorney General Martha Coakley announced today.
Specifically, Coakley's office accused Ohio-based Progressive, the nation's fourth largest automobile insurer, of inaccurately comparing its six-month rates to the 12-month rates offered by other companies, such as Arbella Mutual, Liberty Mutual, and Commerce Insurance. Progressive inaccurately listed all the rates on its web site as six-month prices.
Progressive, which started offering policies in Massachusetts on May 1, 2008, stopped quoting rivals' rates on its web site and through its call center late last year, and notified Coakley's office about the mistake.
“For competition to truly work in Massachusetts, consumers must be able to easily access accurate information about rates from insurance companies,” Coakley said. “Progressive’s failure to provide correct comparison quotes harmed consumers and harmed Massachusetts’ ability to introduce a competitive system in automobile insurance.”
In addition, Coakley's office said Progressive failed to follow its own official rate practices, filed with the state's Division of Insurance, by charging consumer to list additional drivers on their policies who already carried their own insurance. Progressive agreed to reimburse drivers who were improperly charged.
Coakley's office also complained that Progressive frequently failed to notify customers' former insurer when a customer switched auto insurance companies. That in turn led some insurers to cancel customers' policies for nonpayment - instead of just closing the accounts when customers switched to Progressive - potentially hurting customers' credit scores. Progressive agreed to help any customers who were affected.
Progressive spokeswoman Cristy Cote acknowledged the company mistakenly calculated the rates for some competitors when it began offering insurance in Massachusetts last May.
But the company noted that it shut down the service and notified state regulators and competitors after it discovered the errors. It also said it offered to pay the difference for customers who bought its policy when a competitor actually offered a lower rate, provided the customer wanted to switch to the other firm. The company said it also cooperated with Coakley's probe into the other issues.
"We understand that the attorney general’s role is to protect consumers and we wholeheartedly support that goal," Cote said in a written statement. "We are glad to put this matter behind us."
(By Todd Wallack, Globe staff)
Friday, May 29, 2009
Wednesday, May 27, 2009
Massachusetts Senate Budget Bans Texting while Driving
The Massachusetts Senate approved an amendment banning all Internet use while driving as part of its version of the state's upcoming budget.
Drivers would be banned from sending text messages, e-mailing or reading the Internet while behind the wheel under the terms of the budget approved late Thursday night.
Senators stopped short of requiring handsfree devices for talking on a cell phone.
Bus, train, trolley and other public transit drivers would be banned from even holding a cell phone while driving. They could only carry one for emergency purposes.
Drivers would face a $75 fine and an insurance surcharge for violations. Transit drivers would face a $500 fine.
"We have a whole generation of drivers who think it's OK to text while driving. This is designed to send a message that it's not,'' said Sen. Steven Baddour, D-Methuen, co-chairman of the Joint Committee on Transportation and a co-sponsor of the amendment.
The amendment passed a day after an 18-year-old Central Catholic senior from Methuen was killed in a single-car accident as she drove to her high school for pre-graduation festivities. Police are investigating whether Rebecca Solomon was texting at the time.
The move also follows an MBTA Green Line accident in which a driver crashed his trolley into another, allegedly while sending a text message to his girlfriend.
The $27.35 billion budget now moves to a House-Senate conference committee.
Drivers would be banned from sending text messages, e-mailing or reading the Internet while behind the wheel under the terms of the budget approved late Thursday night.
Senators stopped short of requiring handsfree devices for talking on a cell phone.
Bus, train, trolley and other public transit drivers would be banned from even holding a cell phone while driving. They could only carry one for emergency purposes.
Drivers would face a $75 fine and an insurance surcharge for violations. Transit drivers would face a $500 fine.
"We have a whole generation of drivers who think it's OK to text while driving. This is designed to send a message that it's not,'' said Sen. Steven Baddour, D-Methuen, co-chairman of the Joint Committee on Transportation and a co-sponsor of the amendment.
The amendment passed a day after an 18-year-old Central Catholic senior from Methuen was killed in a single-car accident as she drove to her high school for pre-graduation festivities. Police are investigating whether Rebecca Solomon was texting at the time.
The move also follows an MBTA Green Line accident in which a driver crashed his trolley into another, allegedly while sending a text message to his girlfriend.
The $27.35 billion budget now moves to a House-Senate conference committee.
Friday, May 8, 2009
Technology Helps Parents Monitor Teen Drivers
RALEIGH (WTVD) -- A car that can't go faster than 80 mph may be a good thing for some, especially parents.
The new technology from Ford is called MyKey. The idea is to allow parents to set limits on teenage drivers.
It won't be available to the public until later this year, but ABC11's Tim Nelson was able to test it.
Each vehicle equipped with MyKey comes with two sets of keys. The goal is simple, according to David Bass who drives around the Triangle promoting MyKey.
"[It] allows the parent to have peace of mind as the teenage driver hits the road," Bass said.
The device still allows young drivers some freedom through settings that are controlled by parents.
Parents can use what is called the administrator key to program desired settings.
The main setting is speed. There is a top speed of 80 mph. Ford said it considered a lower max, but "On certain roadways you have to keep up with traffic," Bass explained. "That if you're going a little slower than that, that could also create a safety, hazard, so 80 is the maximum."
But other speeds can cause an alert. A chime can be set to go off when 45, 55 and 65 mph is reached.
And there's more. Another setting can make sure a driver doesn't do certain things behind the wheel. "This setting allows on or off to make sure the teenage driver doesn't spin the wheels, do doughnuts with the car," Bass said.
Once the desired settings are saved, the parent keeps the administrative key and the teen driver gets the MyKey.
ABC11 tested it and as we approached 80, we received a message that we were near top speed and would not be able to go faster.
Another feature of the MyKey technology deals with the radio. If somebody has their seatbelt off, it won't play. But plug the belt back in, and you get your tunes back.
This will allow teen to drive with their friends and listen to music, but with limits.
Ford's research shows 75 percent of parents like the MyKey idea and 67 percent of teens don't like it.
It debuts in the 2010 Ford Focus, which is set to hit car lots later this year. Then the technology will move into other Ford and Lincoln-Mercury cars.
The new technology from Ford is called MyKey. The idea is to allow parents to set limits on teenage drivers.
It won't be available to the public until later this year, but ABC11's Tim Nelson was able to test it.
Each vehicle equipped with MyKey comes with two sets of keys. The goal is simple, according to David Bass who drives around the Triangle promoting MyKey.
"[It] allows the parent to have peace of mind as the teenage driver hits the road," Bass said.
The device still allows young drivers some freedom through settings that are controlled by parents.
Parents can use what is called the administrator key to program desired settings.
The main setting is speed. There is a top speed of 80 mph. Ford said it considered a lower max, but "On certain roadways you have to keep up with traffic," Bass explained. "That if you're going a little slower than that, that could also create a safety, hazard, so 80 is the maximum."
But other speeds can cause an alert. A chime can be set to go off when 45, 55 and 65 mph is reached.
And there's more. Another setting can make sure a driver doesn't do certain things behind the wheel. "This setting allows on or off to make sure the teenage driver doesn't spin the wheels, do doughnuts with the car," Bass said.
Once the desired settings are saved, the parent keeps the administrative key and the teen driver gets the MyKey.
ABC11 tested it and as we approached 80, we received a message that we were near top speed and would not be able to go faster.
Another feature of the MyKey technology deals with the radio. If somebody has their seatbelt off, it won't play. But plug the belt back in, and you get your tunes back.
This will allow teen to drive with their friends and listen to music, but with limits.
Ford's research shows 75 percent of parents like the MyKey idea and 67 percent of teens don't like it.
It debuts in the 2010 Ford Focus, which is set to hit car lots later this year. Then the technology will move into other Ford and Lincoln-Mercury cars.
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