State denies FAIR Plan rate hike

Published on Friday, May 09, 2008

State Insurance Commissioner Nonnie Burnes yesterday denied the FAIR Plan’s request for a rate hike that could have increased homeowners insurance premiums for Cape Cod residents by more than 25 percent.

“Through the rate case, the FAIR Plan is required to prove that its request falls within a range of reasonableness and that its proposed rates are not excessive, inadequate or unfairly discriminatory,” Burnes said in a statement. “I have found that the FAIR Plan has failed to meet its burden on a number of critical fronts and will not be permitted to charge Massachusetts homeowners these increased rates.”

The FAIR Plan was created by the legislature to provide homeowners insurance to those unable to obtain it on the private market.