Appealing a Surcharge

 

Before you start the process of appealing a surcharge, it is important to first understand how the Merit Rating Board and Safe Driver Insurance Plan (SDIP) work.

 The Merit Rating Board:

All Massachusetts auto insurance companies are required to report at-fault accidents and out-of-state driving records to the Merit Rating Board (MRB). The MRB is the state agency that maintains driving records.
The MRB driving record consists of surchargeable incidents. A surchargeable incident is any event in which you are:

  1. Convicted of, or pay a fine for, a motor vehicle violation
  2. Assigned to an alcohol education program or controlled substance treatment or rehabilitation program
  3. Found to be more than 50 percent at fault for an accident, and your insurance company makes a claim payment above a certain threshold

If you decide not to pursue an appeal, the surcharge can increase your premium and SDIP step.
In addition, each surchargeable incident counts toward possible license suspension.

You are considered to be more than 50 percent at fault in an accident if your insurance company:

  1. Finds you at fault according to one of the 19 At-Fault Standards  and
  2. Has paid a claim of more than $500 for Collision, Limited Collision, Damage to Someone Else’s Property, or Bodily Injury to Others.

Safe Driver Insurance Plan (SDIP)
The Safe Driver Insurance Plan (SDIP) is mandated by state law to establish classifications of risks to fairly reflect the driving records of insureds and adjust premiums based in part on at-fault accidents. The Plan encourages safe driving by rewarding drivers who do not cause accidents or incur traffic law violations with a credit to their automobile insurance premiums, and discourages unsafe driving by requiring high-risk drivers to pay a greater share of insurance costs. Massachusetts, unlike many comparable jurisdictions that afford no or limited due process rights, provides the right to a hearing before an impartial hearing officer of the Board.

If you believe that you are not more than 50% at-fault for an accident in which you received a surcharge, you may appeal the motor vehicle accident surcharge to the Division of Insurance Board of Appeal.

Your insurance company will mail you a Notice of Surcharge.

  1. If any of the information listed on the Surcharge Notice is incorrect (name, driver’s license number or date of accident), contact the issuing insurance company to make the corrections before appealing.
  2. If you do not receive a Surcharge Notice or misplace it:
  3. Contact your insurance agent for a copy of the Surcharge Notice     OR
  4. Request a late appeal from the Merit Rating Board.
  5. Complete the Surcharge Appeal Form located on the reverse side of the Notice of Surcharge.
  • The appeal must be filed within 30 days of the surcharge date.
  • If you did not submit your appeal within 30 days because you never received a Surcharge Notice, you must obtain a Late Appeal from the Merit Rating Board. The Board of Appeal must receive the Late Appeal within 30 days of your policy renewal.
  1. Submit a $50.00 check or money order payable to the Commonwealth of Massachusetts/Board of Appeal.
  • The fee is non-refundable.
  1. Mail your appeal to the post office box designated on the application. Late appeals must be sent directly to the Division of Insurance, Board of Appeal.
  2. Upon receipt of your surcharge application, the Board will mail you a postcard to acknowledge your appeal. Your cancelled check will serve as an additional receipt of your filing.
  3. The Board will mail you a Notice of Hearing approximately 3 weeks prior to your hearing date.
  4. Appeal hearings are scheduled in Boston, Brockton, Cambridge, Peabody, Plymouth, Somerville, Springfield, Waltham, or Worcester. Carefully note the location of your hearing listed on the Notice. Directions are included at the bottom of the Hearing Notice.
  5. Upon receipt of the Hearing Notice, you have three options for which to pursue the appeal:
    1. Appear in Person.
      Bring your Hearing Notice to the scheduled location.
      Bring copies of all relevant information, any documents/photographs etc. that you want the Hearing Officer to consider when making the decision.
    2. Submit a Written Statement in lieu of your appearance.
      The Board must receive your written or typed statement via mail or facsimile at least 5 days priorto your hearing. The statement must include:
      • copies of all relevant information, any documents/photographs etc. that you want the Hearing Officer to consider in making the decision
      • your signature on the Hearing Notice that identifies you are waiving a personal appearance in favor of your written statement & affirms that your statement is truthful.
    3. Select a representative to appear on your behalf.
      If you elect to submit a written statement via a representative, instead of appearing in person, it must include:

      • Copies of all relevant information, any documents/photographs etc. that you want the Hearing Officer to consider in making the decision
      • your signature on the Hearing Notice that identifies you are waiving a personal appearance in favor of your written statement & affirms that your written statement is truthful.

The hearing is informal and public, lasting approximately 20 – 30 minutes. The Hearing Officer will make an audio tape recording of the hearing. You and your insurance company representative will be given an opportunity to present all pertinent information. You may also bring a witness or a witness statement to the hearing. The Hearing Officer may ask you or the representative questions to clarify the information presented or the circumstances of the accident.

At the conclusion of the hearing, the Hearing Officer will take your appeal under advisement. The facts and circumstances presented will be reviewed in accordance with the governing laws and regulations.

The Memorandum of Finding and Order, the Board’s decision, will be mailed to you within 2-4 weeks. The Board will also contact the Commonwealth’s Merit Rating Board and your insurance company so that your driving history record will be properly updated.

  • If the decision is marked VACATE, the Board has found that you were not more than 50% at-fault for the accident. Any points that you received on your driving record as a result of the accident will be removed.
  • If the decision is marked UPHELD, the Board has found that you were more than 50% at-fault for the accident. The surcharge points will remain on your driving record.

If you disagree with the determination of the Board, you may appeal the decision to your county’s Superior Court or in Boston Suffolk County Court. You must file this appeal within 30 days of your receipt of the decision.
A surcharge incurred due to a traffic violation or a non-moving violation are not appealable to the Board…

Bill Cordaro
Commercial Accounts
Andrew G. Gordon, Inc.

Advertisements

About Geoff Gordon
Geoffrey Gordon, CFP(r), CIC, CRM joined the agency in 1982, after working in sales for a national carrier and then for a Massachusetts life insurance agency. Geoff earned his CERTIFIED FINANCIAL PLANNER (TM) certification in 1985, his Certified Insurance Counselor (CIC) designation in 1994, and completed his Certified Risk Manager (CRM) designation in 2004. Geoff has been president and owner of the agency since 1987, and devotes most of his time to assisting new and existing commercial accounts in reducing the cost of risk. As a small business owner facing many of the same challenges most of our commercial clients face, Geoff appreciates and understands how managing risk can deliver bottom line results.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: