Insurance Issues: March 2010 Archives

March 23, 2010

Dorchester Hair Salon Owes $500,000.00 for Bad Weave

A Boston hair salon known as Kay's, located on Blue Hill Avenue in Dorchester, Massachusetts, now owes a Brockton women $500,000.00 after the Appellate Division Court upheld the jury's 2009 award. Boston personal injury attorney noted that negligence claims such as these, often tried at the District Court level, are then appealed when one side has a legal disagreement with the verdict, such as this case.

The case began in the fall of 2004 when Marie Duvivier, a Brockton woman nearing 60, made an appointment at Kay's in Dorchester for a sewn-in "weave" process that would address her problem with thinning hair. After arriving, Duvivier was told that the stylist she was scheduled to see was unavailable to do the weave - which involves attaching non-growing hair to natural hair to lengthen and thicken it - and that another stylist would do "a quick weave."

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March 9, 2010

New Massachusetts Insurers Avoid High Risk Drivers

Boston and all Massachusetts drivers will continue to see managed auto insurance competition in the state. The Massachusetts Supreme Judicial Court ruled in favor of the Massachusetts Division of Insurance's decision to temporarily exempt auto insurance companies that are new to the Bay State from having to cover high-risk motorists. The Massachusetts Division of Insurance recently allowed managed competition as a way to allow auto insurer companies to compete for good drivers, giving consumer more choices than ever before. The argument is that competition results in better rates for better drivers across the Commonwealth of Massachusetts, and the Law Office of Neil Burns wants to inform Massachusetts residents that they should now compare auto insurance rates before buying or renewing their auto insurance policy.

The Supreme Judicial Court's ruling was the result of a 2008 lawsuit filed by Arbella Mutual Insurance challenging the fact that national insurance companies that are new to the Massachusetts insurance market did not have to cover high-risk drivers for two years. Arbella argued that exemption put Massachusetts insurers like Arbella at a disadvantage, because they are required to insure high-risk motorists and split the losses, based on their market shares in the state. The court ruled that although the new companies don't incur the losses of insuring bad drivers, they contribute administrative costs to the Massachusetts Automobile Insurance Plan, which provides insurance for high-risk drivers. In effect, the Court said that that was good enough to allow the exemption to stand.

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