Trust Insurance v. Commonwealth Automobile Reinsurers

After the adoption in 1995 by Commonwealth

Automobile Reinsurers (CAR) of a new method of transferring excess involuntary motor liability insurance among insurers, one insurance company, Trust Insurance Company (Trust), appealed the decision to the Commissioner of Insurance (commissioner). Trust claimed that the method should have been promulgated by CAR as a rule rather than by publication in its manual. The hearing officer ruled against Trust, but on appeal, a Superior Court judge held CAR’s action invalid and remanded the matter to CAR for further proceedings consistent with its *658rule making…