Bill aims to block auto plan
THE REGION
Legislation has been filed to block a Romney administration plan for assigning high-risk drivers to auto insurers as an industry executive warned the initiative was illegal and could undermine group discounts. The bill filed by Senator Joan M. Menard, a Somerset Democrat, would bar implementation of the plan without legislative approval. At a hearing, John F. Donohue, chairman of Arbella Insurance Group of Quincy, said one provision would cause most companies to stop offering group discounts or sharply reduce the discounts. He also said some drivers could end up in a "twilight zone" without coverage. The new plan takes effect Jan. 1, although Insurance Commissioner Julianne M. Bowler indicated she may amend the plan. (Bruce Mohl)
Boston CPI rises 0.9%
Consumer prices jumped in Boston in the two months ended in November, led by energy costs, the Labor Department reported. The metropolitan area's consumer price index, which measures inflation, jumped 0.9 percent from September, the biggest advance since January. The Boston index is calculated every two months. Over the year, prices rose 2.5 percent here, compared to 3.5 percent nationally. Energy led the advance locally, with natural gas and gasoline hitting record or near record highs, said Denis McSweeney, regional commissioner of the Bureau of Labor statistics. (Robert Gavin)
Insurance hike on Cape
Thousands of homeowners on the Cape and islands will pay significantly more for their home insurance starting in 2006 under a bill passed by the Legislature and sent to Governor Romney. He is expected to sign the measure, which would give the insurance commissioner the power to adjust upward the rates charged by the state's insurer of last resort, the Massachusetts Fair Plan. Fair Plan has become the dominant insurer on the Cape and islands as other insurers have retrenched or pulled out of the region. Its rates, which are set by statute, are slipping below those of other insurers which raised prices dramatically. Fair Plan officials said they need a 50 percent increase to break even, although probably not all at once. (Bruce Mohl)
Siebel Systems buys edocs
Edocs Inc. of Natick, which makes software that companies use to offer electronic billing and customer service features over the Web, agreed to be bought for $115 million cash by business software giant Siebel Systems Inc. Siebel said it may pay edocs shareholders more based on edocs meeting revenue targets and other goals after the deal closes next quarter. About 180 people work for edocs. The companies said they plan no major layoffs. (Peter J. Howe)
Radio ID standard adopted
The board of governors of EPCglobal, the standards body driving the adoption of the radio frequency identification technology pioneered by MIT's Auto-ID Center, has ratified a royalties-free standard for RFID hardware and software. The standards-setting process had turned tense over the summer when RFID equipment maker Intermec Technologies Corp. said it would demand royalties from its intellectual property in the new standard, a move that threatened to increase the costs of using RFID tags and readers. But, ultimately, no patented technology from Intermec was included in the so-called Electronic Product Code General 2 standard approved. (Robert Weisman)
. . .Etc.
Hospitality Properties Trust agreed to buy 13 hotels, for $450 million from InterContinental Hotels Group PLC. Newton-based Hospitality also said it signed 25-year contracts with two InterContinental subsidiaries to operate each of the hotels . . . Pittsfield-based Berkshire Hills Bancorp Inc. agreed to acquire Westfield's Woronoco Bancorp Inc. for about $144.5 million to become the largest bank based in Western Massachusetts . . . Oasis Semiconductor Inc. withdrew its proposed $69 million initial public offering, citing market conditions. (Globe wire services)
