Chances are excellent that auto insurance reform legislationwill finally win passage in Massachusetts, according to aninsurance trade group.

Last week GOP Gov. Mitt Romney filed legislation to reform whathe has termed the "Soviet style" auto insurance rateregulation.

But while Frank O'Brien, regional manager for the PropertyCasualty Insurers Association of America (PCI), sees a favorableoutlook for the measure, he nonetheless expects a "tremendousbattle." Auto insurance is one of the most controversial topics inthe state, he said.

Much of the opposition comes from the state-based insurers whohave already moved against auto insurance reform in the courts thisyear.

Webster-based Commerce Insurance Company will definitely opposethe bill, said Jim Ermilio, Commerce senior vice president. He saidthe current "fix and establish" rate system is one of the reasonsthe state has one of the lowest rates of uninsured drivers.

"This strikes me as a bill that was written by some of thenational companies to make it lucrative for them to enterMassachusetts. It does not surprise me that the governor issupporting a bill backed by national companies, because based oneverything we have read he has national aspirations."

Mr. Ermilio said that if a national writer wants to come in andlower rates they can do that already under the current regulatoryregimen. He sees the bill as leading to "bait and switch" tacticsthat will lure drivers with lower rates at first and provide hikeslater.

But pro-reform forces remain optimistic.

Mr. O'Brien noted that Democratic Senate President RobertTravaglini has said auto insurance reform is one of his top threepriorities in a session that is just hitting its stride afterbudget passage. The lower house is also controlled byDemocrats.

In introducing his proposal last week, Mr. Romney said thataverage savings for the state's better drivers will amount to 5percent, or from $52 to $119 on a statewide basis.

"With so few insurers doing business here, we can no longerpretend that our system is healthy and benefiting our system," Mr.Romney said.

The governor said that the legislation will allow insurers rateflexibility for all coverages but would cap any maximum rateincrease for liability coverages at 15 percent annually.

The legislative initiative follows court action by several ofthe state's insurers led by Commerce, which has blocked efforts byState Insurance Commissioner Julie Bowler to reform the residualmarket through regulation. The insurers obtained an injunctionarguing Ms. Bowler lacked the authority to make such changes.

Mr. O'Brien said the proposed legislation will give thecommissioner the specific authority, while the possibility remainsthat Ms. Bowler will win her court fight.