New England Fidelity Insurance Co. of West Springfield, has gone into receivership. It is the second Massachusetts auto insurer to go under this year.
Industry officials said the failures of New England Fidelity and Trust Insurance Co. of Taunton highlight the problems of operating in the tightly regulated Massachusetts market, particularly for newcomers.
But state regulators see no connection between the financial problems at the two companies, and said auto rates set by the state have been adequate.
New England Fidelity’s net worth plummeted 55 percent during the first six months of the year, with operating losses of more than $500,000 in July. Also, the company’s property reinsurance coverage had been canceled.