Senator Bill Diamond (D) is pursuing legislation that will further protect Maine senior citizens from insurance rate increases due to their age. Diamond’s actions come on the heels of a dispute between Progressive and Maine Superintendent of Insurance, Eric Cioppa, last year when Progressive sought approval for “rate changes that would allow the company to charge older Mainers higher auto insurance premiums based solely on their age.” Fortunately, Progressive’s proposal was shot down by Cioppa, but Diamond wants to ensure “seniors in the state are protected against similar attempts from insurance companies in the future.”
Senator Bill Diamond (D) is pursuing legislation that will further protect Maine senior citizens from car insurance rate increases due to their age. Diamond’s actions come on the heels of a dispute between Progressive and Maine Superintendent of Insurance, Eric Cioppa, last year when Progressive sought approval for “rate changes that would allow the company to charge older Mainers higher auto insurance premiums based solely on their age.” Fortunately, Progressive’s proposal was shot down by Cioppa, but Diamond wants to ensure “seniors in the state are protected against similar attempts from insurance companies in the future.”
So let’s rewind a bit. How did this whole fiasco begin? Well, last year, Progressive introduced a proposal that would effectively raise car insurance rates for drivers 65 or older. Wait, don’t insurance rates typically decrease as drivers get older, especially if they’re good drivers? Typically, yes. In fact, if their proposal had been approved, it would have been a “major departure from the way most insurance companies operate nationwide and in Maine,” because yes, “healthy drivers with flawless driving records typically see their premiums decrease as they age.”
Understandably, when Progressive’s proposal went public, it drew sharp criticism from drivers, as well as “AARP Maine State Director Lori Parham, U.S. Sen. Susan Collins (R) and others.” Collins even went so far as to send a letter to Tricia Griffith, the President and CEO of Progressive, “demanding an explanation for the company’s rate request.” Fortunately for senior citizens, Cioppa declared that Progressive’s proposal would have “violated a section of Maine’s insurance code that protects drivers from arbitrary rate increases based on their age,” and would have impacted an estimated 65,000 policyholders throughout the state. When he officially ruled against the proposal last year, he quoted the insurance code:
“No insurance company authorized to transact business in this state shall cancel, reduce liability limits, refuse to renew or increase the premium of any automobile insurance policy of any kind whatsoever for the sole reason that the person to whom such policy has been issued has reached a certain age.”
Cioppa striking down the proposal was met with applause from drivers and lawmakers alike, and prompted Collins to issue to the following statement about the situation:
“As Chairman of the Senate Aging Committee, I have been greatly concerned by Progressive’s discriminatory proposal to increase auto insurance rates for seniors, which would have imposed significant hardships on older individuals, particularly those who have limited incomes or lack access to transportation alternatives. Last month, I wrote to Progressive’s CEO to raise my concerns as well as to request justification and additional information for its rate increase in Maine and nationally. I am pleased that the Maine Bureau of Insurance has rejected Progressive’s proposal. The company’s filing highlights the need to ensure that auto insurance practices do not discriminate against seniors.”
Even Parham chimed in, saying if the proposal had been approved, it would have “set a dangerous precedent in Maine.” She added, “It also would have sent the wrong message to older Mainers and those looking to retire here.”
Lucky for Maine residents, they have legislators willing to stand up for them, like Diamond, who are working hard to make sure other insurance companies don’t try to do the same thing as Progressive. A hearing on Diamond’s proposal was held last Thursday and will be further discussed and voted on in the near future.
Sources:
Maine Lawmaker Wants to Block Car Insurance Hikes Based on Age
Maine Blocks Progressive’s Request to Raise Seniors’ Car Insurance Rates
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