Massachusetts' new Democratic governor, Deval Patrick, appointed Joseph Murphy acting insurance commissioner yesterday replacing Julie Bowler.
The action comes as the state is about to implement a new assigned risk program in which difficult to insure drivers will be assigned randomly to carriers based on market share.
Ms. Bowler implemented the assigned risk plan on her own authority with the backing of Republican Gov. Mitt Romney and was an advocate of rate regulation reform.
Massachusetts is currently the only state in which regulators set all insurance rates.
Frank O'Brien, vice president for the Property Casualty Insurers Association of America, praised Ms. Bowler's performance but noted insurance commissioners usually change when the opposition party takes over the governor's chair.
Rep. Ron Mariano, D-Quincy, who chairs the House Financial Services Committee, said he could not predict how the two chambers will proceed on rate regulation reform this year, which will require legislative action.
He said his only discussions with Gov. Patrick took place last summer, at which time the candidate did not stake a position on insurance reform.
As for his fellow lawmakers, Mr. Mariano said there remains a great deal of sentiment to keep the current "fix and establish" regime.
He supports a more free market approach, but said the issue was sidetracked last year when lawmakers concentrated on establishing a universal health care system in the state.
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