The state Division of Insurance’s treatment of new market entrant Progressive Auto Insurance had already irked plenty of veteran Massachusetts insurers and agents – now they apparently have another reason to be upset.

Insurance Commissioner Nonnie Burnes ruled last spring that new insurers – in this case, Progressive – are exempt for several years from the industry program that organizes coverage for risky drivers who otherwise would be disqualified from having insurance. Now, it appears that Progressive might not have to contribute money to the pool that currently funds the program, either. 

The governing board of the Commonwealth Auto Reinsurers, the organization that operates Massachusetts’ pool of high-risk drivers, sent a letter to Burnes after its Nov. 19 meeting, saying that Progressive does, indeed, have to pay up. 

According to the letter, the division has told CAR that Progressive does not have to pay into the pool because of Burnes’ decision last spring. CAR, on the other hand, said that Burnes’ previous statements only exempted Progressive from issuing individual policies to risky drivers – not from helping shoulder the cost burden of the pool. 

Many insurers were already incensed by what they believed was unfair favoritism of Progressive, and this new development has only heaped fuel on the fire.

"The initial rule caused great consternation in insurers in this marketplace, and that consternation continues and is being aggravated," said Jim Harrington, executive director of the Massachusetts Insurance Federation, which represents Massachusetts insurers.

Francis Mancini, president of Massachusetts Association of Insurance Agents, said Burnes has the power to change the rules and exempt Progressive from paying, but must specifically change the rules to do so. As of this morning, the division of insurance’s spokeswoman did not return phone messages requesting comment.