
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, February 6, 1991                   TAG: 9102060300
SECTION: VIRGINIA                    PAGE: B4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Short

TERRY SEEKS CUT IN RATE RAISE FOR AT-RISK INSURANCE

Attorney General Mary Sue Terry on Tuesday called on the Bureau of Insurance to slash a requested $30.3 million rate increase in assigned-risk automobile insurance policies.

Terry said more than $20 million of the request was unjustified.

All automobile insurance companies doing business in Virginia must insure a portion of the assigned risk pool, according to their percentage share of the market.

In September, the Automobile Insurance Plan Service Office, a Rhode Island group that analyzes assigned risk programs in 38 states, asked for the rate increase. The group calculated it was necessary to increase rates by 22.4 percent for private vehicles and 37.6 percent for commercial vehicles.

"Our analysis shows that the industry has overstated its expenses and understated its investment income," Terry said.

Unlike conventional automobile insurance rates, assigned risk rates require approval by the state. Drivers who are considered high risks either can turn to the assigned risk pool, or buy even higher-priced policies from specialty companies.

by CNB