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The beginnings of Arbella Insurance weren’t very auspicious. Massachusetts’ Commonwealth Automobile Reinsurers (CAR), the state’s reinsurance pool created in the late 1970s, dominated a market in disarray. By the early 1980s, more than 60 percent of all drivers were in the pool, which carried a deficit of around $500 million. Insurance fraud was rampant, with overworked courts and police disinclined to do much about it.

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