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The biggest auto insurer in Massachusetts is at odds with the AAA Northeast division it says is violating an exclusive 20-year joint marketing agreement that is worth $200 million a year in premiums to the insurer.
In a lawsuit in state court, insurer MAPFRE contends that AAA Northeast's insurance agency has already begun selling auto insurance policies from its affiliated insurer, Motor Club Insurance Co. (MCIC), to its auto club members even though the exclusive joint marketing agreement (JMA) with MAPFRE is still in effect.
According to MAPFRE, the JMA gives it the exclusive right to market and sell to AAA Northeast members using the AAA Emblem at preferential or discount pricing under the state's group insurance law until December 31, 2026.
But, the insurer alleges, AAA Northeast is seeking to "undercut MAPFRE's relationship with Massachusetts consumers by improperly promoting and selling insurance" through MCIC starting January 1, 2026 —...