    "Buying Your Massachusetts Automobile Insurance" has been 
prepared for you by the Massachusetts Division of Insurance as 
part of our continuing effort to inform consumers on the 
detailed and sometimes complex aspects of purchasing automobile 
insurance in the Commonwealth.  This guide outlines the basic 
automobile coverages you are required by law to purchase, as 
well as the coverages available to you on an optional basis.  
We have also included a description of the newly amended Safe 
Driver Insurance Plan - the Commonwealth's merit rating plan 
which offers premium credits to policyholders who practice safe 
driving habits.  Furthermore, this guide provides information 
on filing complaints and money-saving tips for reducing your 
premium without sacrificing insurance protection.  

    If you receive this pamphlet after you purchase your 1990 
automobile insurance and you wish to make changes in the 
coverage, limits, deductibles or discounts, contact your agent 
or company.  They can assist you.  If you are not satsified 
call us.  Our Consumer Service Section can be contacted at 
(617) 727-7189, X 300.


    As you know, the Automobile Insurance Reform Act of 1988 
succeeded in updating our no-fault system, lowered the costs of 
repairing damaged vehicles, expanded consumers' choices and 
initiated long-term, cost-saving efforts that will benefit 
consumers into the 1990s. 

The 1988 Reform Law addressed the rising costs in the system 
through both tort law changes, such as the increase in the tort 
threshold from $500 to $2000, and coverage changes, including 
the increase in Personal Injury Protection (PIP) from $2,000 to 
$8,000, and the coordination of benefits between health 
insurance and PIP coverage.  Consumers have realized reduced 
premiums from additional coverage changes and newly available 
discounts.  The Reform Law increased the standard deductible 
from $300 to $500 for both collision and comprehensive 
coverages and created an optional $100 glass deductible.  Also, 
additional rated reductions are now available for consumers 
whose vehicles are equipped with both an anti-theft device and 
an auto recovery system, and for cars equipped with air bags or 
passive restraint devices. 

A new Safe Driver Insurance Plan will mean substantially 
reduced premiums for long time good drivers.  

This year, a new Safe Driver Insurance Plan takes effect.  The 
aim of the Plan is to make the Massachusetts merit rating 
system more fair by ending the subsidization of unsafe drivers 
by good drivers.  The Plan, known as a "bonus malus" system, 
can be compared to a ladder.  The bottom of the ladder 
represents the lowest premiums and the top of the ladder 
represents the highest premiums.  Drivers will be assigned 
credits and surcharges that are a percentage of the premium for 
specific coverages.  Each year, drivers with an incident-free 
record move down one step on the ladder and earn a premium 
credit.  Drivers who have at-fault accidents or certain traffic 
violations move up the ladder a number of steps equal to the 
number of unsafe driver points assigned and will be assessed a 
surcharge for each point.  Each step up or down the ladder is 
equal to 7% of the driver's premium for liability coverage 
(bodily injury, PIP, and property damage liability) and 5% of 
the premium for collision coverage.  











                  BUYING YOUR MASSACHUSETTS 

                      AUTOMOBILE INSURANCE

                              1990









                       MICHAEL S. DUKAKIS
                   Governor of Massachusetts


                       TIMOTHY H. GAILEY
                   Commissioner of Insurance



                 Commonwealth of Massachusetts 
                     Division of Insurance


CONTENTS

1. COMPULSORY COVERAGES
       Part  1:  Bodily Injury to Others..................
       Part  2:  Personal Injury Protection...............
       Part  3:  Bodily Injury Caused by an 
                 Uninsured Auto...........................
       Part  4:  Damage to Someone Else's Property........
2. OPTIONAL COVERAGES
       Part  5:  Optional Bodily Injury to Others.........
       Part  6:  Medical Payments.........................
       Part  7:  Collision................................
       Part  8:  Limited Collision........................
       Part  9:  Comprehensive............................
       Part 10:  Substitute Transportation................
       Part 11:  Towing and Labor.........................
       Part 12:  Bodily Injury Caused by an 
                 Underinsured Auto........................
3. SAVING MONEY...........................................
4. 1990 SAFE DRIVER INSURANCE PLAN........................
5. FILING A COMPLAINT.....................................



                     FROM THE COMMISSIONER 

       "Buying Your Massachusetts Automobile Insurance" has 
been prepared for you by the Massachusetts Division of 
Insurance.  This guide contains a description of the basic 
coverages you are required by law to purchase, as well as the 
coverages available to you on an optional basis.  We have also 
included information on filing complaints and money-saving tips 
for reducing your premium without sacrificing insurance 
protection.
       Many motorists pay a higher premium than they should 
because they choose coverages that do not suit their needs.  
The most common and costly mistake consumers make when buying 
automobile insurance is to renew their policy without assessing 
how their individual insurance needs might have changed.  
Instead, before you renew your policy, reevaluate your 
insurance choices and your eligibility for the many discount 
opportunities.  Also, buy only the coverage you need and select 
deductibles you can afford. 
       The Safe Driver Insurance Plan (SDIP), which offers 
premium credits to motorists who practice safe driving habits, 
has been significantly changed for 1990.  Although automobile 
insurance will always be expensive in an urban, densely 
populated state like Massachusetts, you can reduce the cost of 
your premium an average of $140 by driving safely and 
maintaining an incident-free driving record.  Although the Plan 
is complex, I urge you to read Part 4 of this guide carefully 
for information on the Plan's many new improvements. 
       Please keep in mind that this guide is not meant to be a 
substitute for the Massachusetts Automobile Insurance Policy.  
Always refer to your Policy for the exact terms and conditions 
of your automobile insurance.  If you receive this guide after 
you have renewed your policy for 1990, and you wish to make 
changes in your coverage, limits, deductibles or discounts, 
contact your agent or company.  They can assist you in making 
the necessary changes.  If you need further information on 
automobile insurance, contact the Division of Insurance at 280 
Friend Street, Boston, MA 02114 (617) 727-7189 or 436 Dwight 
Street, Room 338, Springfield, MA 01103, (413) 784-1190.  
       


                               Timothy H. Gailey
                               Commissioner of Insurance



                     COMPULSORY COVERAGES

       Since 1927, under Massachusetts insurance law, motorists 
have been required to purchase compulsory motor vehicle 
liability insurance.  All registered motor vehicles in the 
Commonwealth must be insured under Parts 1, 2, 3 and 4 of the 
Massachusetts Automobile Insurance Policy.  When you buy this 
insurance, you receive financial protection in case you become 
involved in an accident.  
       Of course, not all insurance-buying decisions are simple 
or clear-cut, because you cannot predict the future.  When in 
doubt, remember that it is more important to have insurance 
against large losses which could threaten your standard of 
living than smaller losses that you can afford to pay yourself. 

Compulsory Coverages
       Part 1: BODILY INJURY TO OTHERS will pay for the damages 
to anyone injured or killed by your auto in Massachusetts up to 
a limit of $10,000 per person and $20,000 per accident.
       Part 1 applies whether your auto is being driven by you 
or by someone else with your permission.  However, this 
coverage never covers injuries to the driver of your auto or to 
guests in your auto.
       Limits higher than $10,000 per person and $20,000 per 
accident and coverage for injuries incurred by guest occupants 
of your auto and for out-of-state accidents may be purchased 
under Part 5.  

       Part 2: PERSONAL INJURY PROTECTION (PIP), provides 
payment of up to $8,000 to you, anyone driving your auto with 
your consent, anyone living in your household, passengers in 
your auto and pedestrians struck by your auto, for expenses 
incurred as the result of an accident, without regard to 
fault.  PIP pays for medical expenses, replacement services and 
75% of any lost wages.  
       If you already have good health insurance and disability 
health plans - provided by your employer, for example - you 
should consider taking a deductible and excluding yourself and 
the members of your household from this coverage.  However, 
remember that even with a comprehensive health insurance plan, 
you would not be provided with coverage for lost wages and 
replacement services, unless your employer offers a wage 
continuation program.          



       Even with a large deductible for you and members of your 
household, guests in your automobile and pedestrians are still 
fully covered.

       Part 3: BODILY INJURY CAUSED BY AN UNINSURED AUTO 
protects you, members of your household, and guests in your 
automobile against losses caused by an uninsured automobile, or 
from a hit-and-run accident, unless the household member or 
guest is protected by their own or another auto insurance 
policy.  In addition, this coverage protects you and members of 
your household as pedestrians against injuries caused by an 
uninsured auto or a hit-and-run driver.  
       Compulsory uninsured automobile coverage requires a 
minimum limit of $10,000 per person and $20,000 per accident.  
Increasing this coverage makes good sense for most people, 
especially for persons who travel outside of Massachusetts, as 
compulsory auto insurance is not mandatory in all states. 
       Please keep in mind that you can purchase Part 3 
coverage with limits that are lower than but not higher than 
the limits you purchase for Part 5.  It is recommended that you 
purchase this coverage in limits equal to the limits you 
purchase under Part 5.
       Part 4: DAMAGE TO SOMEONE ELSE'S PROPERTY pays for 
property damage and for costs resulting from the loss of the 
use of property damaged from an accident caused by you, a 
household member or anyone using your auto with permission.  
This Part never covers damage to your automobile or property.  
       The minimum amount required is $5000.  However, you 
should consider purchasing this insurance with higher limits.  
Today's new car and repair prices being what they are, a limit 
of $25,000 is a good choice for many people.  




                      OPTIONAL COVERAGES

       There are eight other coverages available to you in 
addition to the compulsory insurance, and in general it is up 
to you whether you purchase them or not.  These optional 
coverages provide additional protection against financial loss 
resulting from an automobile accident.  If you have borrowed 
money to purchase your automobile, your lender may legally 
require you to carry the optional coverages, Collision (Part 7) 
and Comprehensive (Part 9).
.  Your insurance company may refuse to issue you some optional 
coverages because of certain prior driving violations or 
insurance-related crimes.  

Optional Coverages
       Part 5: OPTIONAL BODILY INJURY TO OTHERS allows you to 
extend the protection you must purchase under Part 1, by 
offering coverage above the $10,000/$20,000 limit for injuries 
caused by you in Massachusetts, in other parts of the United 
States and in Canada.  
       Unlike the compulsory Bodily Injury insurance, Part 5 
will pay for injuries to guests of your automobile and for 
injuries to others caused by any person who is using your car 
with your consent.
       To protect your assets and future income, it makes good 
sense to buy higher limits under this Part; $100,000 per person 
and $300,000 per accident will meet most drivers needs.  Such 
additional coverage is valuable since, considering the rising 
costs of medical and hospital care, court judgments can easily 
exceed $20,000. 

       Part 6: MEDICAL PAYMENTS covers medical expenses for 
injuries resulting from any accident involving you, any 
household member and any passenger, once the limits provided 
under Part 2, Personal Injury Protection have been exhausted.  
It does not cover lost wages.  Drivers who have comprehensive 
health insurance plans may not need the extra coverage provided 
under Part 6.  
       You should, however, think about buying this Part if you 
and your household members do not already have adequate health 
insurance or if you want this protection for passengers in your 
automobile.

       Part 7: COLLISION insurance pays for damage to your 
automobile caused by a collision regardless of fault.  The cost 
of collision protection varies with the model and year of your 
automobile, where it is garaged and the operator 
classification.  Because it pays for damages regardless of 
fault, this Part is expensive to purchase.  
       Unfortunately, there is no good rule-of-thumb to use 
when purchasing Collision coverage.  If your automobile is 
financed, your lender may require you to carry this Part on 
your policy.  However, if you own your automobile outright, 
your decision to purchase Collision should depend on whether or 
not you can afford to replace your automobile without help from 
your insurance company.



       A deductible is the portion of each claim you agree not 
to be covered for.  For example, if you purchase Collision with 
the standard $500 deductible and you suffer a loss of $700, you 
will collect $200 from your insurance company.  If a loss of 
less than $500 occurs, you are responsible for the entire 
amount.  Collision protection can be purchased at a much lower 
price when you purchase a deductible higher than the standard 
$500 deductible.  Choose the larger deductible if you can 
afford to pay a larger loss out of your own pocket.  You also 
have the option to purchase the more expensive $300 
deductible.  The choice is not an easy one, so take the time to 
evaluate your financial circumstances when purchasing this and 
any other available deductible. 
       Your company may require a $500 Collision or Limited 
Collision deductible if you have had a major at-fault accident 
within the previous three years. 
       WAIVER OF DEDUCTIBLE coverage may be purchased at a 
higher premium if you opt to purchase Collision coverage.  The 
Waiver of Deductible allows any deductible you choose to be 
ignored in cases of fault on the part of another identifiable 
driver.  The deductible would not be waived in a hit-and-run 
accident, even if the unidentifiable party was completely at 
fault.  
       You might choose to purchase the Waiver of Deductible 
for the benefit it offers if you are involved in an accident 
caused by an identifiable, insured driver.  While many 
policyholders are willing to pay the additional cost for the 
Waiver of Deductible's convenience, others view the benefits as 
too few to justify the extra premium.  
       NOTE:  Your failure to list a household member as an 
operator on your policy may have very serious consequences.  
Your insurer will not pay for a Collision loss for an accident 
which occurs while your auto is being operated by a household 
member who is not listed as an operator on your policy.  
Payment is withheld when the household member, if listed, would 
require the payment of additional premium on your policy 
because the household member would be classified as an 
inexperienced operator or a higher rating step would be 
assigned under the Safe Driver Insurance Plan. 

       Part 8: LIMITED COLLISION also pays for damages to your 
automobile caused by a collision, although in limited 
circumstances.  Because this coverage is not as broad as Part 
7, its cost is considerably less.
       This coverage will not pay for one-car accidents, 
accidents in which you are more than 50% at fault or for 
accidents where the owner or driver of the other vehicle cannot 


be identified.  Limited Collision will pay for most other 
accidents and offers the convenience of dealing with your own 
insurance company.   
       If you are willing to pay for the damage you might cause 
to your auto, or if the value of your auto does not justify 
purchasing full Collision coverage, then Limited Collision or 
no collision coverage is your best bet.  
       You may reduce or eliminate the $500 standard Limited 
Collision deductible for an extra premium.
       NOTE:  Your failure to list a household member as an 
operator on your policy may have very serious consequences.  
Your insurer will not pay for a Limited Collision loss for an 
accident which occurs while your auto is being operated by a 
household member who is not listed as an operator on your 
policy.  Payment is withheld when the household member, if 
listed, would require the payment of additional premium on your 
policy because the household member would be classified as an 
inexperienced operator or a higher rating step would be 
assigned under the Safe Driver Insurance Plan.

       Part 9: COMPREHENSIVE coverage will pay for losses which 
are not caused by a collision, such as fire, theft and 
vandalism losses.  In addition, this insurance will pay you up 
to $15 a day for substitute transportation until your stolen 
auto is recovered (up to a limit of $450).
       Comprehensive coverage does not insure personal 
belongings in your auto unless they have been made a permanent  
part of your automobile.  This means that clothing is never 
covered, but a C.B. radio permanently installed in the opening 
of the dash or console is.
       The standard deductible for Comprehensive coverage is 
$500, although you have the option to purchase a $300 
deductible.  As with the Collision coverage, buying back to the 
lower deductible will raise your premium cost.  Seriously 
consider choosing a larger deductible than the standard one if 
you can afford to pay a larger loss out of your own pocket.  
You should also consider installing an anti-theft device and/or 
a signal-activated vehicle recovery system.  Anti-theft 
equipment and recovery system discounts, which are discussed in 
the Saving Money Section, range from 5% to 35%.  
       You also have the option of purchasing a $100 deductible 
on glass claims.  If you take a deductible, you will reduce the 
cost of your Comprehensive coverage by  %, however if you have 
a claim for a broken windshield or other glass damage, you will 
have to pay for the first $100 of that damage.   




       Part 10: SUBSTITUTE TRANSPORTATION pays up to $15 a day 
for car rental, taxicab fares and other transportation costs 
(up to a limit of $450).
       You should carefully consider whether you need this 
coverage.  Claims for loss of use caused by another driver are 
generally payable under that driver's Damage To Someone Else's 
Property coverage (Part 4).  Comprehensive Coverage (Part 9) 
provides reimbursement for loss of use resulting from theft.  
Moreover, Substitute Transportation coverage does not pay under 
all conditions.  If your auto is being repaired or replaced 
because of damages that would be covered under Collision 
coverage (Part 7), you can collect under Part 10.  There is no 
coverage, however, if your auto is merely in the shop for 
routine repairs.
       Please note that if you are under the legal age or have 
a poor credit rating you may be unable to rent a vehicle.  
However, you do remain eligible for the reimbursement of 
transportation expenses.  

       Part 11: TOWING AND LABOR will pay up to $25 for towing 
and labor charges each time your automobile breaks down.  The 
cost of replacement parts is not covered and labor is covered 
only to get your auto going again at the place of breakdown.  
       If you belong to a motor club, you may already have 
Towing and Labor coverage - so check your club's benefits 
before purchasing Part 11. 
       Your insurance company may legally refuse to sell you 
Towing and Labor coverage. 

       Part 12: BODILY INJURY CAUSED BY AN UNDERINSURED AUTO 
will pay damages for bodily injury to people injured or killed 
as the result of certain accidents caused by someone who does 
not have enough insurance, up to the difference between the 
total amount collected from the automobile bodily injury 
liability insurance covering the owner and the operator of the 
auto and the limits you purchased for this coverage.  
       Your company will pay damages to or for you, or any 
household member, unless the household member has his or her 
own Massachusetts auto policy or is covered by a Massachusetts 
auto policy of a household member providing similar coverage 
with higher limits, if you are injured as a pedestrian or while 
occupying an auto you do not own.  It will also pay damages to 
or for anyone else occupying your auto unless that person has 
his or her own Massachusetts auto policy or is covered by a 
Massachusetts auto policy of any household member providing 
similar coverage.




Below are some examples of how this coverage works:
EXAMPLE 1 - You do not buy the Underinsured Auto coverage.  You 
are injured in an auto accident caused by the other driver who 
is legally responsible for your injuries.  Your damages total 
$20,000.  The other driver's Bodily Injury liability limit is 
$10,000.  You can collect $10,000 from the other driver's 
insurance, but you must sue the other driver to collect the 
other $10,000.  If the other driver has no assets, you could 
suffer a loss of $10,000.

EXAMPLE 2 - You purchase Underinsured Auto coverage limits of 
$20,000 per person; $40,000 per accident.  Your damages are 
$30,000.  The other driver's policy provides $10,000 of Bodily 
Injury liability insurance, which you collect from his 
company.  You can only collect an additional $10,000 from your 
company.  This is the difference between the amount collected 
from all automobile Bodily Injury liability limits and your 
Underinsured Auto limit of $20,000 for each person. 

EXAMPLE 3 - You purchase Underinsured Auto coverage limits of 
$20,000 per person; $40,000 per accident.  Your damages are 
$20,000.  The other driver's policy provides $10,000 of Bodily 
Injury liability insurance which you collect from his company.  
Your Underinsured Auto coverage will pay you $10,000 in full 
payment of your outstanding damages.  This is the difference 
between the other driver's Bodily Injury limits and your 
Underinsured Auto coverage limits. 

       Keep in mind that since all registered motor vehicles 
must have the compulsory Bodily Injury limits of $10,000 per 
person; $20,000 per accident, purchasing Underinsured Auto 
coverage limits of $10,000/$20,000 provides little or no 
coverage.  If you choose to purchase Underinsurance coverage, 
you may buy limits that are less than but not higher than the 
limits purchased under Part 5, however it is recommended that 
you buy it in limits equal to the limits you purchase under 
Part 5.  



                         SAVING MONEY

       Getting the discounts you are entitled to, paying 
attention to detail and driving conscientiously can all work to 
keep your insurance costs down.  By following the suggestions 
listed below, you will maximize the available savings.  
       
Be An Alert Shopper
       Before choosing your coverages, limits and deductibles, 
read the Massachusetts Automobile Insurance Policy carefully to 
be certain that you understand the coverages.  Assess your 
driving habits in order to determine the coverages and limits 
you need.  When filling out the application, make sure that you 
complete it accurately in order for your policy to be rated 
properly.  Finally, when you receive your Coverage Selections 
Page, do not file it away without checking to see that the 
coverages, limits, deductibles, discounts and premium are 
correct.  

Review Your Bill
       You do not leave the store without a receipt - and you 
should not buy auto insurance without an itemized bill!
       First, look at your bill to find out whether any part of 
the total cost is for service fees.  Although some agents and 
brokers charge nothing for the additional effort needed to fill 
out various forms or to bring your license plates from the 
Registry, others will charge you a fee for performing such 
services.  However, no agent or broker can charge service fees 
in connection with issuing or renewing your automobile 
insurance policy, nor are you legally bound to pay for any 
other services your agent or broker performs without your 
consent.  
       Your itemized bill should tell you whether you have been 
enrolled in a motor club.  Obviously, if you do not want to 
join a motor club or if you are already a member of a different 
motor club, you should not pay the membership dues.   If you do 
belong to a motor club, check to see if membership includes 
benefits similar to the Towing/Labor and Substitute 
Transportation coverages - there is no point in buying 
duplicate coverage.  
       Of course, the main thing your insurance bill will tell 
you is how much you owe.  According to state law, no company, 
agent or broker can ask you to pay more than 30% of your 
premium before you renew your coverage (although you may pay 
more than 30% if you wish).  However, if you have defaulted on 
a premium payment during the previous twenty-four months, your 
insurer can legally require payment of 100% of your premium.  



       Should you choose to pay less than your total bill, it 
is likely that you will have to pay some kind of finance 
charge.  Choose your finance plan carefully.  Commercial 
lenders and insurance premium finance agencies charge up to 18% 
interest per year on the unpaid balance.  Insurance premium 
finance agencies may also charge an additional $16 fee for 
setting up the account. 
       For many policyholders, another way of making time 
payments is to do business with an insurance company that will 
bill you in installments and charge a flat fee for each 
billing.  These charges vary from company to company and 
according to the number of installments you want to make.  In 
some instances the company's carrying charges will cost less 
than other financing arrangements.  

Discount Opportunities
       Be particularly careful to answer those application 
questions relating to the following five discounts, which can 
cut your insurance costs considerably if you qualify for them.  
       * Low Mileage Discount -  If you drive 5,000 or fewer 
miles per year, you are eligible for the maximum 10% discount.  
If you drive between 5,001 and 7,500 miles per year, you are 
eligible for a 5% discount. The discount applies to all 
coverages except Comprehensive, Substitute Transportation and 
Towing and Labor, and applies to the rate for each insured car 
as otherwise determined by territory, driver class, vehicle 
model year and symbol, prior to the application of SDIP 
surcharges or credits. 
       * Senior Citizen Discount - Drivers 65 years or older 
who are principal operators of their cars receive a 25% 
reduction on all their auto coverages, provided there is no 
inexperienced driver (one with less than six years of driving 
experience) listed on their policies.  Cars used for business 
are not eligible.  The 25% discount does not apply to SDIP 
Surcharge Points. 
       * Public Transportation Discount - Choosing to take 
public transportation instead of using your automobile can save 
you 10% on your property damage liability and collision 
coverages.  The maximum discount is $75.  To obtain this 
discount, you must show evidence of purchase of 11 months of 
commuter passes or tickets from a qualified transit system.
       * Anti-Theft and Recovery System Discounts- 
Policyholders who install certain kinds of anti-theft devices 
are eligible for a 5%, 15%, or 20% discount on Comprehensive 
coverages.  The installation of a signal-activated vehicle 
recovery system, in combination with an approved anti-theft 
device, can qualify you for a savings between 25%-35%.  The 
size of the discount varies, depending on the kind of 
anti-theft device, and whether it is combined with a vehicle 
recovery system.  



       You should seriously consider buying and using some kind 
of anti-theft device and/or vehicle recovery system.  Before 
you choose a particular brand or model, check with your agent, 
broker or company representative about the discount.  A quick 
check before you buy can help you avoid an expensive 
misunderstanding later.  
       * Multi-Vehicle Discount - Individuals and married 
couples who own more than one car and insure them for Collision 
or Limited Collision coverage with the same company can get a 
5% discount on these coverages.  This discount is available 
only to experienced drivers. 

       Inexperienced drivers can realize a 10% savings on three 
of the four compulsory coverages and on optional liability and 
collision coverages, if they complete an approved 
driver-training course.  The savings is calculated into the 
rates for the particular driver classifications.
       Finally, you can affect the cost of your policy by how 
you and the other operators of your auto drive.  You will 
receive Credit Points on your policy if you and the other 
operators maintain good driving records.  More detailed 
information about the Safe Driver Insurance Plan can be found 
in Part 4 of this guide. 
       


              THE 1990 SAFE DRIVER INSURANCE PLAN

       If you and the other drivers listed on your policy have 
incident-free driving history records, then your insurance 
premium for Bodily Injury to Others (Part l), Personal Injury 
Protection (Part 2), Damage to Someone Else's Property (Part 4) 
and Collision (Part 7) coverages will be reduced by the 
application of Credit Points, helping to lower your total 
automobile insurance bill.  If you or any other driver listed 
on your policy caused an accident or violated any surchargeable 
motor vehicle traffic law, your insurance premium for Parts 1, 
2, 4, and 7 will increase due to the application of Surcharge 
Points.
       The 1990 Safe Driver Insurance Plan 211 CMR 125.00 is 
published in accordance with the authority granted to the 
Commissioner of Insurance under Massachusetts General Laws 
Chapter 175 Section 113B.

HIGHLIGHTS OF THE 1990 SAFE DRIVER INSURANCE PLAN
       * All operators on a policy will be assigned an SDIP
       Step. 
       * Six years of driving history will be used to rate your 
       policy. 
       * An SDIP Step is determined by adding Surcharge Points
       for surchargeable incidents within the policy Experience 
       Period to a starting step value of 15 and subtracting 
       Credit Points for each year of incident-free driving 
       within the policy Experience Period for which the 
       operator was licensed to drive in Massachusetts. 
       * Operators will receive one Credit Point for each year
       of incident-free driving for which they were licensed to 
       drive in Massachusetts.
       * Surcharge Points for Surchargeable Incidents have 
       increased.
       * Aging of incidents has been eliminated.

SAFE DRIVER INSURANCE PLAN (SDIP) STEPS
       The 1990 Safe Driver Insurance Plan assigns an SDIP Step 
to each operator listed on a policy.  For policy year 1990 the 
SDIP Step range is from 09 to 35.  SDIP Step 09 is the Best 
Credit Step for 1990.
       All operators enter the step system at Step 15, the 
neutral step - no increase or decrease in automobile insurance 
premium.  Each operator's SDIP Step is computed by adding to 
the starting step value of 15, Surcharge Points for 
surchargeable incidents within the policy Experience Period, 
and then subtracting Credit Points earned by the operator for 
each incident-free year within the policy Experience Period or 
special Credit Points for the Clean Slate Rule.



       This equation will help you determine your operator SDIP 
Step:
                     STARTING STEP  15
                   + SURCHARGE POINTS
                   - CREDIT POINTS
                   ----------------------
                   = OPERATOR'S SDIP STEP

EXPERIENCE PERIOD
       The Experience Period of a 1990 policy is the 6 year 
period immediately preceding the policy effective date.  The 
Experience Period is expected to increase each year by 1 year 
up to 15 years.  For example, the Experience Period of a policy 
in 1991 is expected to be 7 years.

CREDIT POINTS
       One Credit Point is subtracted from the starting step of 
15 for each incident-free year of driving during the policy 
Experience Period.  An incident free year of driving is any of 
the 1-year periods immediately preceding the policy effective 
date for which the operator has been licensed to drive in 
Massachusetts and during which the operator has not had a 
surchargeable at-fault accident or motor vehicle traffic 
violation.
       EXAMPLE: If you have been licensed to drive in 
Massachusetts for 10 years, there are no surchargeable 
incidents on your driving history record and your policy 
effective date is 01/01/90, you will be placed at SDIP Step 09, 
the Best Credit, for 1990.  To compute this yourself, first 
determine either the date you obtained your Massachusetts 
driver's license or the beginning date of your policy 
Experience Period (preceding 6 years), whichever is later.  In 
this example, 01/01/84, the beginning date of the policy 
Experience Period, is later.  Next, subtract 6 Credit Points - 
1 point for each incident-free year within the Experience 
Period - from the neutral step 15.  The resulting number is 
your operator SDIP Step.

       STARTING STEP       01/01/84          15
       CREDIT POINTS                       - 06
                                            -----
       OPERATOR SDIP STEP                  = 09

       Operators with less than 6 years of driving experience 
will receive Credit Points for only those incident-free years 
for which they were licensed to drive in Massachusetts.  
       Operators licensed to drive in Massachusetts for less 
than 1 year will be placed at SDIP Step 15, the neutral step.

SURCHARGEABLE INCIDENTS AND SURCHARGE POINTS
       At-Fault Accidents - If you are involved in an accident 
and you file a Collision claim, or if another person 


files a claim under Damage To Someone Else's Property, your 
insurance company must determine who was more than 50% 
at-fault.  It makes no difference whether the at-fault accident 
occurred within the Commonwealth or out-of-state.  
       There are two types of at-fault accidents.  A Minor 
At-Fault Accident is a claim payment under Damage to Someone 
Else's Property, Collision or Limited Collision coverage of 
more than $200 but not more than $1,500 and a Major At-Fault 
Accident is a claim payment under Damage to Someone Else's 
Property, Collision or Limited Collision coverage of more than 
$1,500.
       If your company finds that you were at-fault and pays a 
claim of more than $200, the at-fault accident will be added to 
your operator's driving history record and your company will 
send you a Surcharge Notice.  The Surcharge Date for an 
at-fault accident is the Date of Notice entered by your insurer 
on the Surcharge Notice form.  The accident will become part of 
your driving history record unless the company withdraws the 
Surcharge Notice or you successfully appeal the notice to the 
Board of Appeal.   

       Appealing At-Fault Accidents- Accident surcharges must 
be appealed at the time you receive the Surcharge Notice from 
your insurance company.  Detailed instructions for filing an 
appeal are on the Surcharge Notice.  The Board of Appeal on 
Motor Vehicle Liability Policies and Bonds will hold the 
hearing and will notify you, your company and the Merit Rating 
Board of its decision.  If the Board determines that you were 
not more than 50% at-fault in the accident, the Merit Rating 
Board will remove the incident from your driving history record.
       If your premium is increased due to Surcharge Points for 
an at-fault accident while your appeal is pending, you must pay 
the additional premium or your policy will be cancelled.  Your 
policy will be re-rated by your insurance company if you win 
your appeal.  
       If you have any questions concerning an appeal of a 
Surcharge Notice, contact the Board of Appeal at (617) 
727-7189, extension #223.

       Motor Vehicle Traffic Law Violations - If you are 
convicted of, or make payments for, violating certain motor 
vehicle traffic laws, or are assigned to an alcohol education 
program, the court will notify the Merit Rating Board.  The 
motor vehicle traffic law violation will be added to your 
driving history record.  The court judgment date is the 
Surcharge Date for a motor vehicle traffic law violation.
       Surcharge Points are not assigned to a non-criminal 
minor motor vehicle traffic law violation if it is the first 
motor vehicle traffic law violation in the operator's policy 


Experience Period.  No Surcharge Points are assessed for the 
incident but no Credit Points are calculated for the year in 
which the surcharge date is recorded, since the operator does 
not have an incident-free year.
       A list of all surchargeable Motor Vehicle Traffic Law 
Violations can be obtained from the Merit Rating Board.

       Out of-State Violations - Convictions of Motor Vehicle 
Traffic Laws outside the Commonwealth that are reported to the 
Registry of Motor Vehicles will be added to the operator's 
driving history record and will be subject to Surcharge Points.

       Surcharge Points - The number of Surcharge Points 
assigned to each surchargeable incident is determined by the 
type of incident:

       Minor Traffic Law Violation      2 Surcharge Points
       Minor At-Fault Accident          3 Surcharge Points
       Major At-Fault Accident          4 Surcharge Points
       Major Traffic Law Violation      5 Surcharge Points

       EXAMPLE: If you have been licensed to drive in 
Massachusetts for 8 years; you have 2 Minor Traffic Law 
Violations and 1 Minor At-Fault Accident on your driving 
history record and your policy effective date is 01/01/90, then 
your SDIP Step will be 17. 

STARTING STEP               01/01/84                         15
                         Incident Date       Surcharge Date 
SPEEDING                    12/01/84          12/22/84       00
MINOR AT-FAULT ACCIDENT     07/17/87          08/18/87       03
SPEEDING                    04/24/88          05/02/88       02
CREDIT POINTS (incident-free years 1985, 1986 and 1989)    - 03
                                                            ----
OPERATOR SDIP STEP                                         = 17

COMPREHENSIVE CLAIMS
       Your insurance company is required to notify the Merit 
Rating Board when a Comprehensive claim has been paid.  
Comprehensive claims are added to the policyholder's driving 
history record.  In future years the Comprehensive coverage on 
your private passenger automobile insurance policy may be 
subject to Surcharge Points if you submit four or more 
Comprehensive claims on or after January 1, 1984, totaling 
$2,000 or more.  
       Surcharge Points for Comprehensive claims will not be 
applied for policies effective in 1990.




ASSIGNMENT OF OPERATOR SDIP STEPS TO VEHICLES LISTED ON A POLICY
       After each operator listed on your policy is assigned an 
SDIP Step, the operators are assigned to the vehicles listed on 
the policy.  The listed operator with the highest Step is 
assigned to the vehicle with the highest combined premium for 
Parts 1, 2, 4, and 7.  For each subsequent vehicle, the listed 
operator with the next highest Step is assigned to the vehicle 
with the next highest combined premium until all the vehicles 
have been exhausted.  An operator's SDIP Step greater than SDIP 
Step 15 can not be billed on more than one policy in effect at 
the same time.  
       When there are more vehicles than operators listed on a 
policy, the excess vehicles are assigned the step of the 
operator with the lowest Step unless such operator's Step is 
above SDIP Step 15.  In such case, the excess vehicles are 
assigned SDIP Step 15. 

EXAMPLE: A policy lists four (4) vehicles and three (3) 
operators:  Operator A's SDIP Step is 20, Operator B's SDIP 
Step is 15 and Operator C's SDIP Step is 09.

       Vehicles                Operators
       1                       A. SDIP Step 20
       2                       B. SDIP Step 15
       3                       C. SDIP Step 09
       4                       C. SDIP Step 09

APPLICATION OF PREMIUM ADJUSTMENTS TO COVERAGES
       An operator's SDIP Step determines how much of an 
adjustment will be made to the policy premium.  SDIP Steps 09 
(Best Credit) to 14 are Credit Steps.  For each step below 15 
the operator's premium will be adjusted downwards.  Step 15 is 
the neutral step, which means the operator is neither in credit 
nor surcharge status, and will not receive a reduction or an 
increase in premium.  Step 16 through 35 are Surcharge Steps.  
For each step above 15 the operator's premium will be adjusted 
upwards.  If you wish to calculate the actual amount of your 
credit or surcharge, refer to "Calculation of SDIP Credits and 
Surcharges" at the end of this section.

       Liability Premium- Each step represents a 7% change in 
the following liability coverages:
       Part l:       Bodily Injury to Others
       Part 2:       Personal Injury Protection
       Part 4:       Damage to Someone Else's Property (PDL)

       Collision Premium- Each step represents a 5% change in 
Collision Coverage:
       Part 7:       Collision




       Example: If you have been licensed to drive in 
Massachusetts for six years; you have no incidents on your 
6-year driving history record; your SDIP Step is 09; and you 
have Liability and Collision coverages on your policy, then you 
will receive a 42% (7% X 6 steps) reduction on your Liability 
coverages and a 30% (5% X 6 steps) reduction on your Collision 
coverage.

CLEAN SLATE RULES
       The Safe Driver Insurance Plan provides incentives to 
operator's who have incidents on their record in the early 
years of the Experience Period, but in subsequent years have 
maintained clean driving history records.

       Transitional Clean Slate Rule- In order to ensure a fair 
and equitable transition from the 1989 Safe Driver Insurance 
Plan, the 1990 Safe Driver Insurance Plan includes a Clean 
Slate Rule.  For 1990, a 3-Year Clean Slate Rule will place an 
operator in a credit step if that operator would have been in 
credit status under the 1989 SDIP. 
       If the operator's SDIP Step is greater than 15, the 
operator's SDIP Step will be set at 14 if all of the following 
conditions for the Clean Slate Rule are met:

Three (3) Year Clean Slate Rule applies to an operator on a 
1990 policy if:
a.     the operator has a three year period of incident free 
       driving within the policy Experience Period;
b.     the three year period occurs after 1/1/87 and before 
       12/31/90;
c.     the operator had a valid Massachusetts driver license 
       for the entire three year incident-free period; and
d.     the operator's SDIP step at the end of the incident-free 
       period would be greater than 14.  Then the operator's 
       SDIP step is set to 14.
Points for surchargeable incidents within the policy Experience 
Period which have surcharge dates that are recorded after this 
3-year incident free period are added to operator SDIP Step 14. 

       Clean Slate Incentive- As an incentive to promote safe 
driving, a Five (5) Year Clean Slate provision has been added 
for policies effective after 1991.  If an operator maintains 
five consecutive years of incident-free driving within the 
policy Experience Period, and the operator's SDIP Step is 
greater than 15, then the operator's SDIP Step will be set at 
15.  The operator must have a valid Massachusetts driver's 
license for the entire five year incident free period. 
SAFE DRIVER INSURANCE PLAN (SDIP) STATEMENT
       Your insurance company is required to send you a Safe 
Driver Insurance Plan (SDIP) Statement if you or any operator 
listed on your policy are not assigned Operator Step 09, the 
Best Credit for 1990.

REFUSAL TO PAY A PREMIUM INCREASE
       If you refuse to pay your premium increase due to 
Surcharge Points, your insurance company will cancel your 
policy after sending you the Notice of Cancellation required by 
law.

RECORD ERROR OR BILLING PROBLEMS
       If you believe a billing is erroneous, you should first 
contact your insurance agent, broker or company.  Make sure you 
have all necessary information on hand, including your Coverage 
Selections Page, Safe Driver Insurance Plan (SDIP) Statement 
and copies of your billings.
       If you question the accuracy of your driving history 
record as shown on your Safe Driver Insurance Plan (SDIP) 
Statement call or write the Merit Rating Board's Insurance 
Company Services Section, 100 Nashua Street, 6th Floor, Boston, 
MA 02114, (617) 727-7017.  You must pay a billed premium while 
the matter is under investigation or your insurance company 
will cancel your policy.  If an error is discovered, it will be 
corrected and all parties will be notified in writing.  If you 
were erroneously billed your insurance company will re-rate 
your policy.

OBTAINING A COPY OF YOUR OPERATOR DRIVING HISTORY RECORD
       You may obtain a copy of your operator driving history 
record from the Merit Rating Board.  This detailed record will 
show six years of your active surchargeable incidents on file 
at the Merit Rating Board.  The cost is $3.00.  DO NOT MAIL 
CASH.  Make check or money order payable to the Commonwealth of 
Massachusetts.
       No fee is required to inspect your computer record at 
the Merit Rating Board's office.  However, a prior appointment 
must be made with the Board's Insurance Company Service Section.
CALCULATION OF SDIP CREDITS AND SURCHARGES
       Your total policy credit or surcharge is determined by 
multiplying the coverage premium shown on your Coverage 
Selections Page by the factor which corresponds to your SDIP 
Step (see below), and then adding the products for all four 
coverages.  Subtract this number from your total premium if you 
are determining a credit. Add this number to your total premium 
if you are determining a surcharge. 
================================================================
                        SURCHARGE FACTORS
  Step         Part 1         Part 2         Part 4      Part 7
  Number       BI to Others    PIP           Property    Collision
                                             Damage
------         ---------       -------       --------    -------

         35    1.40            1.40          1.40        1.00
         34    1.33            1.33          1.33        0.95
         33    1.26            1.26          1.26        0.90
         32    1.19            1.19          1.19        0.85
         31    1.12            1.12          1.12        0.85
         30    1.05            1.05          1.05        0.75
         29    0.98            0.98          0.98        0.70
         28    0.91            0.91          0.91        0.65
         27    0.84            0.84          0.84        0.60
         26    0.77            0.77          0.77        0.55
         25    0.70            0.70          0.70        0.50
         24    0.63            0.63          0.63        0.45
         23    0.56            0.56          0.56        0.40
         22    0.49            0.49          0.49        0.35
         21    0.42            0.42          0.42        0.30
         20    0.35            0.35          0.35        0.25
         19    0.28            0.28          0.28        0.20
         18    0.21            0.21          0.21        0.15
         17    0.14            0.14          0.14        0.10
         16    0.07            0.07          0.07        0.05
=================================================================
                  NO CREDIT/NO SURCHARGE FACTORS
Step
Number   Part 1                Part 2        Part 4      Part 7
------         -------        ------         ------      ------
         15    0.000           0.000         0.000       0.000
=================================================================
                        SURCHARGE FACTORS
Step
Number         Part 1          Part 2        Part 4      Part 7
------         ---------       -------       ------      ------
         14    0.07            0.07          0.07        0.05
         13    0.14            0.14          0.14        0.10
         12    0.21            0.21          0.21        0.15
         11    0.28            0.28          0.28        0.20
BEST     10    0.35            0.35          0.35        0.25
CREDIT=  09    0.42            0.42          0.42        0.30
================================================================


The Division would like to thank the Merit Rating Board for its 
preparation of this section of the guide.


                       FILING A COMPLAINT

       If you believe that your insurance company has acted 
improperly in issuing, renewing or cancelling your automobile 
insurance policy, or has refused to pay all or part of a fair 
claim, or your agent, broker or company has misrepresented you, 
you have the right to file a complaint and seek a resolution.  
       The problem may be due to a simple error, and may be 
corrected with an inquiry over the telephone.  Contact your 
agent, broker or company representative.  Make sure you have all 
necessary information on hand, such as the policy or account 
number, a clear and concise description of the problem and any 
other important information.
       If you do not receive a prompt, satisfactory response, 
write a letter to the company briefly explaining your problem and 
what you expect to be done to correct it.  It may be a good idea 
to send the letter by registered mail to guarantee that the 
company receives it.  
       If you still feel you have been treated unfairly, send a 
complaint letter to the Division of Insurance, and we will assist 
you in resolving your problem.  Be sure to include your name, 
address, and phone number; the name of the agent, broker or 
insurance company; the policy number; and a brief description of 
the problem.  Make sure you keep a copy of the letter and any 
other documents you include with the letter, for your own 
records.  Keep all letters, receipts, bills and policies together 
for easy reference.  The Division of Insurance has Consumer 
Service offices located at:

       280 Friend Street      436 Dwight Street, Rm. 438
       Boston, MA 02114       Springfield, MA  01103
       (617) 727-3333         (413) 784-1190

       We will make every effort to ensure that your valid 
complaint is resolved in a satisfactory manner, by investigating 
the problem, clarifying misunderstandings and making sure you get 
clear responses to your questions.  We cannot however, guarantee 
a favorable action on your complaint if it is not supported by 
facts or the law, nor can we provide legal services that may be 
required to settle a more complicated complaint. 
