An Act relative to reducing racial and socioeconomic inequities in auto insurance premium pricing

This bill amends Massachusetts insurance laws to reduce racial and socioeconomic disparities in auto insurance premiums by limiting how much insurers can charge based on where a driver lives. It requires insurance companies to weight their pricing plans so that no more than 75% of a premium is based on local risk data, while at least 25% must reflect the state-wide average. Additionally, the legislation mandates that insurers cannot create new rules that undermine this balance and must provide detailed explanations to regulators showing how they comply with these requirements. The changes directly affect private passenger auto insurance rates across the state and empower the Commissioner of Insurance to disapprove filings that fail to meet these equity standards.