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

This bill requires Massachusetts auto insurers to limit geographic-based pricing in their rate calculations. Insurers must ensure that no more than 75% of a policy's rate is based on specific local area costs (territorial classification), with at least 25% tied to statewide averages. Insurers must justify their calculations and explain compliance in rate filings. The law directly affects auto insurers and policyholders in Massachusetts, aiming to reduce rate disparities between neighborhoods that often correlate with racial or socioeconomic factors. The Insurance Commissioner can disapprove non-compliant rate filings after a hearing.