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2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 174j - Notice to Prospective Insured Disclosing Broker-Controlled Insurer Relationships

Section 174J. The broker, at the time or before an application is taken for the policy, shall deliver a separate written notice to the prospective insured disclosing the relationship between the broker and the controlled insurer; except that if the business is placed through a subbroker who is not a controlling broker, the controlling broker shall retain in his records a signed statement from the subbroker that the subbroker is aware of the relationship between the insurer and the broker and that the subbroker has notified the prospective insured of the relationship by separate written notice at or before the time application was taken.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 174k - Violations of Secs. 174f to 174k; Remedies

Section 174K. (A) If the commissioner believes that the controlling broker or any other person as defined in section one hundred and seventy-four G has violated any provisions of sections one hundred and seventy-four F to one hundred and seventy-four K, inclusive, or any regulation or order promulgated hereunder, the commissioner, may order the controlling broker to cease placing business with the controlled insurer; and
(B) In addition to the remedies provided by chapter one hundred and seventy-six D, in any administrative action against a controlling broker or other person the commissioner may, if the commissioner finds that because of a violation by the controlling broker or any subbroker the controlled insurer or any policyholder thereof has suffered any loss or damage, the commissioner may order the broker, subbroker or both to compensate the insurer or policyholder for such loss or damage.
(C) If an order for liquidation or rehabilitation of the controlled insurer has been entered and a receiver appointed pursuant to sections one hundred and eighty A to one hundred and eighty L, inclusive, or an ancillary receiver has been appointed in the commonwealth for a foreign company, and the appointed receiver believes that the controlling broker or any other person has violated this section, or any regulation or order promulgated hereunder, and the insurer suffered any loss or damage therefrom, the receiver may maintain a civil action for recovery of such loss or damage or other appropriate sanctions for the benefit of the insurer.
(D) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided for in this chapter or chapter one hundred and seventy-six D.
(E) Nothing contained in this section is intended to or shall in any manner alter or affect the rights of policyholders, claimants, creditors or other third parties.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 175 - Representation or Advertisement as Agent, Broker or Adjuster Without Being Duly Licensed; Carrying on of Business in Name Other Than That Stated in License

Section 175. Whoever, not being duly licensed as an insurance agent or broker or as an adjuster of fire losses, represents or holds himself out to the public as being such an agent, broker or adjuster, or as being engaged in the insurance business, by means of advertisements, cards, circulars, letterheads, signs or other methods, or whoever, being duly licensed as such agent, broker or adjuster, advertises as aforesaid or carries on such business in any other name than that stated in his license, shall be punished by a fine of not less than ten nor more than one hundred dollars.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 176 - Larceny by Agent or Broker

Section 176. An insurance agent or broker who acts in negotiating or renewing or continuing a policy of insurance or an annuity or pure endowment contract issued by a company lawfully doing business in the commonwealth, and who receives any money or substitute for money as a premium for such a policy or contract from the insured or holder thereof, shall be deemed to hold such premium in trust for the company. If he fails to pay the same over to the company after written demand made upon him therefor, less his commission and any deductions to which, by the written consent of the company, he may be entitled, such failure shall be prima facie evidence that he has used or applied the said premium for a purpose other than paying the same over to the company, and upon conviction thereof he shall be guilty of larceny.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 176a - Refund or Credit of Return Premiums on Cancelled Motor Vehicle Policies; Penalty

Section 176A. An insurance agent or broker or premium finance agency who has received a return premium on any motor vehicle insurance policy shall within thirty days thereof pay over the full amount of said return premium to the person whose insurance policy has been cancelled or to his assignee, unless such person is otherwise indebted to said insurance agent, broker, or premium finance agency in which case any such return premium may be applied to such indebtedness and said agent, broker, or premium finance agency shall be required to pay over that portion only of said return premium which exceeds said indebtedness. In the event of payment to the assignee, notice thereof shall be given immediately to the person whose insurance policy has been cancelled. Failure by any agent, broker, or premium finance agency to return the full amount of said return premium or to give notice to the person whose insurance policy has been cancelled shall be sufficient cause in the case of an insurance agent or broker for the commissioner to suspend or revoke all licenses that may have been issued to said agent or broker, and in the case of a premium finance agency for the insurance commissioner to notify the commissioner of banks of the violation of this section.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177a - Insurance Adviser Defined

Section 177A. Whoever, not being an officer or a regular salaried employee of any company and acting for such company, or not being duly licensed as an insurance broker or not being duly licensed as an insurance agent and acting for any company of which he is such an agent, or not being a duly authorized attorney-at-law or a certified public accountant acting within the course or scope of his profession or business, for a fee received or to be received, offers to examine, or examines or aids in examining any policy of insurance or any annuity or pure endowment contract for the purpose of giving, or gives or offers to give, any advice, counsel, recommendation or information in respect to the terms, conditions, benefits, coverage or premium of any such policy or contract, or in respect to the expediency or advisability of altering, changing, exchanging, converting, replacing, surrendering, continuing, renewing or rejecting any such policy or contract, or of accepting or procuring any such policy or contract from any company, or whoever, in or on advertisements, cards, signs, circulars or letterheads, or elsewhere, or in any other way or manner by which public announcements are made, uses the title ''insurance adviser'', ''insurance specialist'', ''insurance counselor'', ''insurance analyst'', ''policyholders' adviser'', ''policyholders' counselor'', or any other similar title, or any title, word or combination of words indicating that he gives, or is engaged in the business of giving, advice, counsel, recommendation or information to holders of policies of insurance or annuity or pure endowment contracts, shall be deemed an insurance adviser.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177c - Contracts or Agreements With Insurance Adviser; Enforceability

Section 177C. No contract or agreement of the type referred to in section one hundred and seventy-seven A with an insurance adviser shall be enforceable by him unless it is in writing, and executed personally in duplicate by the person to be charged or by his legal representative, nor unless one of said duplicates is delivered to, or retained by, such person when it is signed by him, nor unless it plainly specifies the amount of the fee paid or payable by such person and the services to be rendered by such insurance adviser, nor unless it is in a form currently approved by the commissioner.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177d - Statement and Receipt From Insurance Adviser Specifying Advice Given and Fee Paid

Section 177D. An insurance adviser who furnishes any advice or counsel as such adviser, makes any recommendation or gives any information except under the terms of a previously executed written contract conforming to the preceding section and in full force and effect shall thereupon, in every case, give to the recipient thereof a statement in writing, signed by him, in a form currently approved by the commissioner, specifying the advice, counsel, recommendation or information given, and a receipt, in a form currently approved by the commissioner, for the fee paid to him, or a statement, in a form currently approved by the commissioner, of the fee to be received by him therefor. Whoever violates any provision of this section shall be punished by a fine of not less than fifty nor more than five hundred dollars.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177g - Definitions Applicable to Secs. 177f to 177l

Section 177G. As used in sections one hundred and seventy-seven F to one hundred and seventy-seven L, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:—
''Actuary'', a person who is a member in good standing of the American Academy of Actuaries.
''Insurer'', any person, firm, association or corporation engaged in the business of insurance in this commonwealth.
''Producer'', an agent, broker or reinsurance intermediary licensed pursuant to the applicable provisions of the General Laws.
''Managing general agent'', any person, firm, association or corporation who manages all or part of the insurance business of an insurer, including the management of a separate division, department, line, product or underwriting office, and acts as an agent for such insurer, whether known as a managing general agent, manager or other similar term, who, with or without the authority, either separately or together with affiliates, directly or indirectly produces or underwrites an amount of gross direct written premium equal to or more than five percent of the policyholder surplus as reported in the last annual statement of the insurer in any one quarter or year, together with one or more of the following: (i) adjusts or pays claims on behalf of the insurer; or (ii) negotiates insurance on behalf of the insurer.
Notwithstanding the foregoing, the following persons shall not be considered as managing general agents for the purposes of sections one hundred and seventy-seven F to one hundred and seventy-seven L, inclusive:
(1) an employee of the insurer;
(2) a United States manager of the United States branch of an alien insurer;
(3) an underwriting manager which, pursuant to contract, manages all or part of the insurance operations of an authorized insurer, is under common control with such insurer, subject to sections two hundred and six to two hundred and six D, inclusive, and whose compensation is not based on the volume of premiums written; or
(4) an attorney-in-fact authorized by and acting for the subscribers of a reciprocal insurance exchange or inter-insurance exchange under powers of attorney.
''Underwrite'', the authority to accept or reject risks on behalf of the insurer.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177h - Managing General Agent; Licensure and Errors and Omissions Coverage Required

Section 177H. (A) No person, firm, association or corporation shall act in the capacity of a managing general agent with respect to risks located in the commonwealth for an insurer licensed in the commonwealth unless such person:
(i) is a licensed producer in the commonwealth; and (ii) maintains errors and omissions coverage.
(B) No person, firm, association or corporation shall act in the capacity of a managing general agent representing an insurer domiciled in the commonwealth with respect to risks located outside the commonwealth unless such person:
(i) is a licensed producer in the commonwealth, whether resident or non-resident; and (ii) maintains errors and omissions coverage.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177j - Independent Financial Examination of Managing General Agent; Actuary Opinion of Loss Reserves; Review of Processing Operations; Notification to Commissioner of Appointment or Termination

Section 177J. (A) The insurer shall have on file independent financial examinations, in a form acceptable to the commissioner, of each managing general agent with which it has done or is currently doing business.
(B) If a managing general agent establishes loss reserves, the insurer shall annually obtain the opinion of a qualified actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the managing general agent. This is in addition to any other required loss reserve certification.
(C) The insurer shall periodically, at least semi-annually, conduct an on-site review of the underwriting and claims processing operations of the managing general agent and prepare a written report of its findings.
(D) Binding authority for all reinsurance contracts or participation in insurance or reinsurance syndicates shall rest with an officer of the insurer, who shall not be affiliated with the managing general agent.
(E) Within thirty days of entry into or termination of a contract with a managing general agent, the insurer shall provide written notification of such appointment or termination to the commissioner. Notices of appointment of a managing general agent shall include a statement of duties which the managing general agent is expected to perform on behalf of the insurer, the lines of insurance for which it is authorized to act, and any other information the commissioner may request. Notices of termination shall state all reasons for such termination.
(F) An insurer shall review its books and records each quarter to determine if any licensed producer has become a managing general agent as defined in section one hundred and seventy-seven G. If the insurer determines that a producer has become a managing general agent pursuant to the above, the insurer shall promptly notify the producer and the commissioner of such determination and the insurer and producer must fully comply with the provisions of this section within thirty days.
(G) An insurer shall not appoint to its board of directors an officer, director, employee, subproducer or controlling shareholder of its managing general agents. This subsection shall not apply to relationships governed by sections two hundred and six to two hundred and six D, inclusive, or, if applicable, sections one hundred and seventy-four F to one hundred and seventy-four K, inclusive.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177l - Administrative Action Against Managing General Agent; Authority of Commissioner; Penalties

Section 177L. (A) Managing general agents shall be considered to be in the business of insurance for purposes of the applicability of chapter one hundred and seventy-six D. In addition to the remedies provided by said chapter one hundred and seventy-six D, in any administrative action against a managing general agent the commissioner may order:
(1) for each separate violation of the managing general agents act, a penalty in an amount up to ten thousand dollars;
(2) the managing general agent to reimburse the insurer, or the rehabilitator or liquidator of the insurer, for any losses incurred by the insurer caused by a violation of the managing general agents act by the managing general agent.
(B) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided for in this chapter or chapter one hundred and seventy-six D.
(C) Nothing contained in this section is intended to or shall in any manner limit or restrict the rights of policyholders, claimants and auditors.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177p - Contracts Between Reinsurance Intermediary Broker and Insurer; Required Provisions

Section 177P. A reinsurance intermediary broker shall represent or perform services for an insurer only pursuant to a written contract which specifies the responsibilities of each party. The contract shall, at a minimum, provide that:
(a) The insurer may terminate the reinsurance intermediary broker's authority at any time.
(b) The reinsurance intermediary broker shall render accounts to the insurer accurately detailing all material transactions, including information necessary to support all commissions, charges and other fees received by or owing to the reinsurance intermediary broker, and remit all funds due to the insurer within thirty days of receipt.
(c) All funds collected for the insurer's account shall be held by the reinsurance intermediary broker in a fiduciary capacity in a bank which is a qualified United States financial institution as defined herein.
(d) The reinsurance intermediary broker shall comply with section one hundred and seventy-seven Q.
(e) The reinsurance intermediary broker shall comply with the written standards established by the insurer for the cession or retrocession of all risks.
(f) The reinsurance intermediary broker shall disclose to the insurer any relationship with any reinsurer to which business will be ceded or retroceded.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177q - Maintenance of Records by Reinsurance Intermediary Broker

Section 177Q. (A) For at least ten years after expiration of each contract of reinsurance negotiated by or through the reinsurance intermediary broker, the reinsurance intermediary broker will keep a complete record for each transaction showing:
(1) the type of contract, limits, underwriting restrictions, classes or risks and territory;
(2) period of coverage, including effective and expiration dates, cancellation provisions and notice required of cancellation;
(3) reporting and settlement requirements of balances;
(4) rate used to compute the reinsurance premium;
(5) names and addresses of assuming reinsurers;
(6) rates of all reinsurance commissions, including the commissions on any retrocessions handled by the reinsurance intermediary broker;
(7) related correspondence and memoranda;
(8) proof of placement;
(9) details regarding retrocessions handled by the reinsurance intermediary broker including the identity of retrocessionaires and percentage of each contract assumed or ceded;
(10) financial records, including but not limited to, premium and loss accounts; and
(11) when the reinsurance intermediary broker procures a reinsurance contract on behalf of a licensed ceding insurer:
(a) directly from any assuming reinsurer, written evidence that the assuming reinsurer has agreed to assume the risk; or
(b) if placed through a representative of the assuming reinsurer, other than an employee, written evidence that such reinsurer has delegated binding authority to the representative.
(B) The insurer shall have access and the right to copy and audit all accounts and records maintained by the reinsurance intermediary broker related to its business in a form usable by the insurer.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177r - Reinsurance Intermediary Broker License Required; Employment Restrictions; Annual Financial Statements

Section 177R. (A) An insurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance intermediary broker on its behalf unless such person is licensed as required by section one hundred and seventy-seven O.
(B) An insurer may not employ an individual who is employed by a reinsurance intermediary broker with which it transacts business, unless such reinsurance intermediary broker is under common control with the insurer and subject to sections two hundred and six to two hundred and six D, inclusive.
(C) The insurer shall obtain a copy of the current annual statement of financial condition or documents providing similar information for each reinsurance intermediary broker with which it transacts business.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177t - Prohibited Acts by Reinsurance Intermediary Manager

Section 177T. The reinsurance intermediary manager shall not:
(A) Cede retrocessions on behalf of the reinsurer, except that the reinsurance intermediary manager may cede facultative retrocessions pursuant to obligatory facultative agreements if the contract with the reinsurer contains reinsurance underwriting guidelines for such retrocessions. Such guidelines shall include a list of reinsurers with which such automatic agreements are in effect, and for each such reinsurer, the coverages and amounts or percentages that may be reinsured, and commission schedules.
(B) Commit the reinsurer to participate in reinsurance syndicates.
(C) Appoint any producer without assuring that the producer is lawfully licensed to transact the type of reinsurance for which he is appointed.
(D) Without prior approval of the reinsurer, pay or commit the reinsurer to pay a claim, net of retrocessions, that exceeds the lesser of an amount specified by the reinsurer or one percent of the reinsurer's policyholder's surplus as of December thirty-first of the last complete calendar year.
(E) Collect any payment from a retrocessionaire or commit the reinsurer to any claim settlement with a retrocessionaire, without prior approval of the reinsurer. If prior approval is given, a report must be promptly forwarded to the reinsurer.
(F) Jointly employ an individual who is employed by the reinsurer unless such reinsurance intermediary manager is under common control with the reinsurer subject to sections two hundred and six to two hundred and six D, inclusive.
(G) Appoint a sub-reinsurance intermediary manager.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177u - Reinsurance Intermediary Manager License Required; Annual Financial Statements; Actuary Opinion of Loss Reserves; Notice of Termination; Prohibited Appointments

Section 177U. (A) A reinsurer shall not engage the services of any person, firm, association or corporation to act as a reinsurance intermediary manager on its behalf unless such person is licensed as required by section one hundred and seventy-seven O.
(B) The reinsurer shall annually obtain a copy of statements of the financial condition of each reinsurance intermediary manager which such reinsurer has engaged prepared by an independent certified accountant in a form acceptable to the commissioner.
(C) If a reinsurance intermediary manager establishes loss reserves, the reinsurer shall annually obtain the opinion of an actuary attesting to the adequacy of loss reserves established for losses incurred and outstanding on business produced by the reinsurance intermediary manager. This opinion shall be in addition to any other required loss reserve certification.
(D) Binding authority for all retrocessional contracts or participation in reinsurance syndicates shall rest with an officer of the reinsurer who shall not be affiliated with the reinsurance intermediary manager.
(E) Within thirty days of termination of a contract with a reinsurance intermediary manager, the reinsurer shall provide written notification of such termination to the commissioner which shall include a statement of all reasons for such termination.
(F) A reinsurer shall not appoint to its board of directors, any officer, director, employee, controlling shareholder or subproducer of its reinsurance intermediary manager. This subsection shall not apply to relationships governed by sections two hundred and six to two hundred and six D, inclusive, or, if applicable, sections one hundred and seventy-four F to one hundred and seventy-four K, inclusive.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177v - Examination of Reinsurance Intermediary by Commissioner

Section 177V. (A) A reinsurance intermediary shall be subject to examination by the commissioner. The commissioner shall have access to all books, bank accounts and records of the reinsurance intermediary in a form usable to the commissioner.
(B) A reinsurance intermediary manager may be examined as if it were the reinsurer.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 177w - Administrative Action Against Reinsurance Intermediary; Authority of Commissioner; Penalties

Section 177W. (A) A reinsurance intermediary shall be considered to be in the business of insurance for purposes of the applicability of chapter one hundred and seventy-six D. In addition to the remedies provided by that chapter, in any administrative action against a reinsurance intermediary the commissioner may order:
(1) For each separate violation, a penalty in an amount up to ten thousand dollars; (2) The reinsurance intermediary to make restitution to the insurer, reinsurer, rehabilitator or liquidator of the insurer or reinsurer for the net losses incurred by the insurer or reinsurer attributable to such violation.
(B) Nothing contained in this section shall affect the right of the commissioner to impose any other penalties provided in this chapter or any other applicable sections of the General Laws.
(C) Nothing contained in these sections is intended to or shall in any manner limit or restrict the rights of policyholders, claimants, creditors or other third parties or confer any rights on such persons.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 178 - Receiver of Insolvent Company; Compensation and Accounts

Section 178. The compensation of receivers of insolvent companies shall be fixed by the supreme judicial court. All accounts rendered to the court by such receivers, except those rendered by the commissioner when appointed under section one hundred and seventy-nine, shall be referred to the commissioner.
Such receivers, at the expiration of one year after final settlement ordered by the court, shall report to the court the names and residences, if known, of the persons entitled to money or dividends from the estate of such companies remaining in their hands uncalled for, with the amount due to each. The court shall thereupon order a notice to be given by the receivers and, upon the expiration of one year after the time of giving such notice, the receivers shall in like manner report the amounts still uncalled for. Unless cause shall appear for decreeing otherwise, such amounts shall then be ordered to be paid to the commonwealth, and schedules signed by the receivers shall at the same time be deposited with the state treasurer and comptroller, setting forth the decree of the court and the names and residences, so far as known, of the persons or parties entitled thereto, alphabetically arranged, and the amount due to each. The comptroller shall forthwith cause notice of such deposit to be mailed to such persons, and, upon certification by him that a claimant is entitled to any part of said deposit, it shall be paid in the same manner as other claims against the commonwealth. Upon the payment to the commonwealth of such unclaimed money or dividends by the receiver and the allowance by the court of his final account, or at the expiration of one year after the final settlement ordered by the court, if he then has in his hands no unclaimed money or dividends, he shall deposit with the commissioner all books and papers of such company, including those relative to his receivership, which shall be preserved by the commissioner, subject to section forty-two of chapter thirty.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 179 - Receiver of Insolvent Company; Appointment of Commissioner, Deputy or Assistant as Receiver

Section 179. In any proceeding in which application is made by or at the relation of the commissioner for the appointment, either temporary or permanent, of a receiver of a company, the commissioner or one of his deputies or assistants may, in the discretion of the court, be appointed receiver, and when so appointed shall serve without compensation other than his official salary. When authorized in advance by the court, counsel and other assistants may be employed, and paid, from the assets of the company, such sums as the court may fix. Expenses other than those incurred for services in the settlement of the affairs of the company shall, subject to the approval of the court, be paid from its assets. Nothing contained in this section shall affect any provision of sections one hundred and eighty A to one hundred and eighty L, inclusive.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180 - Receiver of Insolvent Company; Examination of Accounts and Transactions

Section 180. The commissioner, his deputy or examiner shall annually or oftener examine the accounts and transactions of all receivers of insolvent companies; and shall also carefully examine all accounts of such receivers referred to him under section one hundred and seventy-eight and make report thereof to the court.
For the above purposes, he, his deputy or examiner shall have free access to the official books and papers of such receivers relative to their transactions and shall have all the powers conferred by section four.
If in his opinion a receiver has violated his duty in office, or further proceedings by receivers to collect an assessment will not offer substantial relief to creditors, the commissioner shall certify the facts to the court.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180b - Domestic Companies; Rehabilitation Proceedings

Section 180B. The commissioner may institute a rehabilitation proceeding against a domestic company conducting an intrastate business only, or against a domestic company transacting business in any other reciprocal state for any cause specified in section six, other than that the company has exceeded its powers or has violated any provision of law, by making application to the supreme judicial court for his appointment as receiver to rehabilitate such company and conserve its assets. The court may on such application issue a temporary injunction restraining the company in whole or in part from further proceeding with its business by appointing the commissioner as temporary receiver forthwith and after due notice and opportunity to be heard, appointing the commissioner as permanent receiver and authorize him to take possession of all property and effects of the company and to conduct its business for the purpose of rehabilitating it by taking such measures as may be proper to eliminate the causes and conditions which caused the institution of such proceeding, subject to the order of the court, or may dismiss the petition.
The receiver may at any time make application to the court for the termination of a proceeding under this section and for the return to the company of all its property and effects, with authority to resume the conduct of its business. The court, if satisfied after due notice and a full hearing that the purposes of the proceedings have been substantially accomplished, shall grant such application, provided that no such application instituted on behalf of an impaired insurer, as defined in section one hundred and forty-seven of chapter one hundred and seventy-five, shall be granted except upon compliance with the terms and conditions of subclause (b) of clause (2) of paragraph (B) of subsection 8 of said section 147.
In any rehabilitation proceeding the court may authorize the receiver to employ such counsel and other assistants as may be necessary for the proper conduct of such proceeding. The compensation of such counsel and assistants and all other necessary expenses of conducting such proceeding shall be paid out of the funds or assets of the insurer in the possession of the receiver.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180d - Domestic Companies; Duty of Receivers to Give Notice of Appointment

Section 180D. The receiver of any company of which this commonwealth is the domiciliary state, appointed under section six, section one hundred and eighty B or section one hundred and eighty C, shall, within twenty days after his appointment, give notice thereof to all policyholders of the company by written notice, in a form prescribed by the court, sent by mail, postage prepaid, to the last address of the insured appearing on the records of the company.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180e - Ancillary Receiver of Foreign Insurer

Section 180E. Whenever under the laws of the commonwealth, an ancillary receiver is to be appointed in delinquency proceedings for an insurer not domiciled in the commonwealth, the court shall appoint the commissioner as ancillary receiver and authorize him in addition to other powers, to conserve its assets within the commonwealth upon the grounds that such foreign insurer has been placed in the hands of a receiver or that possession of such insurer has been taken by the person having supervision of such insurer in its domiciliary state, or that such insurer has had its property sequestrated in its domiciliary state or any other state. A decree to conserve the assets of a foreign insurer shall direct the receiver forthwith to take possession of the property of such insurer in the commonwealth and to conserve the same, subject to the order of the court. The pertinent provisions of section six, section one hundred and eighty B and section one hundred and eighty C shall apply in case of any application under this section.
The domiciliary receiver of an insurer domiciled in a reciprocal state, unless the court shall order otherwise, shall be vested with the title to all of the property, contracts and rights of action, and all of the books and records, of the insurer located in this commonwealth, and shall have the immediate right to recover balances due from local agents and any books and records of the insurer found in this commonwealth. He shall also be entitled to recover forthwith and reduce to possession the other assets of the insurer located in this commonwealth; provided, that, upon the appointment of an ancillary receiver in this commonwealth, such ancillary receiver shall during the ancillary receivership proceedings have the sole right to recover and reduce to possession such other assets. The ancillary receiver shall, as soon as practicable, liquidate from their respective securities such special deposit claims and secured claims as are approved and allowed in the ancillary proceedings in this commonwealth, and, under the orders of the court, shall pay from the assets in his hands as receiver the necessary costs and expenses of such proceedings, including compensation, and shall transfer all remaining assets to the domiciliary receiver. Except as otherwise provided herein, such ancillary receiver shall have the same powers and be subject to the same duties as a domiciliary receiver in this commonwealth.
Except as otherwise provided herein, the domiciliary receiver of an insurer domiciled in a reciprocal state may sue in this commonwealth to recover any assets of such insurer to which he may be entitled under the laws of this commonwealth.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180g - Proof of Claims; Liquidation Proceedings; Cause of Action Against Policyholder

Section 180G. Where an insurer has been adjudicated to be insolvent by a decree made pursuant to section six or section one hundred and eighty C, any person who has a cause of action against an insured of such insurer under a liability insurance policy issued by such insurer shall have the right to file a claim in the liquidation proceeding, regardless of the fact that such claim may be contingent, and such claim may be allowed (a) if it may be reasonably inferred from the proof presented upon such claim that such person would be able to obtain a judgment upon such cause of action against such insured, and (b) unless the court for good cause shown shall otherwise direct, if such person shall furnish suitable proof that no further valid claims against such insurer arising out of his cause of action other than those already presented can be made, and (c) if the total liability of such insurer to all claimants arising out of the same act of its insured shall be no greater than its total liability would be were it not in liquidation. No judgment against such an insured taken after the date of the entry of the liquidation order shall be considered in the liquidation proceedings as evidence of liability, or of the amount of damages, and no judgment against an insured taken by default or by collusion prior to the entry of the liquidation order shall be considered as conclusive evidence in the liquidation proceeding either of the liability of such insured to such person upon such cause of action or of the amount of damages to which such person is therein entitled.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180h - Contingent Claims; Distribution of Assets of Insolvent Insurer

Section 180H. Except as provided in section one hundred and eighty G, no contingent claim shall share in a distribution of the assets of an insurer which has been adjudicated to be insolvent by a decree made pursuant to section six or section one hundred and eighty C, except that such claims shall be considered, if properly presented, and may be allowed to share where (a) such claim becomes absolute against the insurer on or before the last day fixed by the court for filing of proofs of claim against the assets of such insurer, or (b) there is a surplus and the proceeding in which the decree was made is thereafter conducted upon the basis that such insurer is solvent.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180i - Liquidation Proceedings Commenced in Reciprocal State; Proof of Claims

Section 180I. If a liquidation proceeding is commenced in a reciprocal state against an insurer of which such state is the domiciliary state, claimants against such insurer who reside within this commonwealth may file claims either with the ancillary receiver, if any, appointed in this commonwealth or with the domiciliary receiver; provided, that all such claims shall be filed on or before the last date fixed by the court for the filing of claims in the domiciliary proceeding.
In any such proceeding, contested claims belonging to claimants residing in this commonwealth may be proved (a) in the domiciliary state as provided by the law of such state, or (b), if ancillary proceedings have been commenced in this commonwealth, in such ancillary proceedings. In the event that any such claimant elects to prove his claim in this commonwealth, he shall file his claim with the ancillary receiver in the manner provided by decree or rule of the court in which the proceeding is pending and he shall give, or cause to be given, notice in writing to the receiver in the domiciliary state, either by registered mail or by personal service. Such notice shall be given at least forty days prior to the date set for hearing, and shall contain a concise statement of the amount of the claim, the facts on which the claim is based, and the priorities asserted, if any. If the domiciliary receiver, within thirty days after the giving of such notice, shall give notice in writing to the ancillary receiver and to the claimant, either by registered mail or by personal service, of his intention to contest such claim, the domiciliary receiver shall be entitled to appear in any proceeding in the commonwealth involving the adjudication of the claim. The final allowance of a claim by a court of the commonwealth shall be accepted as conclusive as to its amount and priority, if any, against special deposits or other security located within the commonwealth.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180j - Special Deposit Claims; Liquidation Proceedings; Priority

Section 180J. The owners of special deposit claims against an insurer for which a receiver has been appointed in a liquidation proceeding in this or any other reciprocal state shall be given priority against their several special deposits in accordance with the laws governing the creation and maintenance of such deposits. If there be a deficiency in any such deposit, so that the claims secured thereby are not fully discharged therefrom, the claimants may share in the general assets, but such sharing shall be deferred until general creditors, and also claimants against other special deposits who have received smaller percentages from their respective special deposits, have been paid percentages of their claims equal to the percentage paid from such special deposit.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180k - Secured Claims; Liquidation Proceedings

Section 180K. The owner of a secured claim against an insurer for which a receiver has been appointed in a liquidation proceeding in this or any reciprocal state may surrender his security and file his claim as a general creditor, or such secured claim may be discharged by resort to the security, in which case the deficiency, if any, shall be treated as a claim against the general assets of the insurer on the same basis as claims of unsecured creditors. If the amount of the deficiency has been adjudicated in ancillary proceedings as provided in this chapter or if it has been adjudicated by a court of competent jurisdiction in proceedings in which the domiciliary receiver has had notice and opportunity to be heard, that amount shall be conclusive; otherwise the amount shall be determined in the delinquency proceedings in the domiciliary state.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180l - Severability of Secs. 180a to 180k

Section 180L. If any provision of sections one hundred and eighty A to one hundred and eighty K, inclusive, or the application thereof to any person or circumstances, is held invalid, such invalidity shall not affect other provisions or applications of said sections which can be given effect without the invalid provisions or application, and to this end the provisions of said sections are declared to be severable.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180m - Definitions Applicable to This Section and Secs. 180n to 180q

Section 180M. As used in this section and in sections one hundred and eighty N to one hundred and eighty Q, inclusive, the following words shall have the following meanings:—
''National emergency'', an emergency caused by an attack on the United States or by a nuclear, atomic or other disaster which makes it impossible or impracticable for a company to conduct its business in strict accord with law, its by-laws or its charter.
''Domestic company'', shall also include the United States branch of a foreign insurance company formed under the laws of any government or state, other than the United States or one of the United States, which, being authorized to do business in the commonwealth, has its principal office in the commonwealth, and the term ''board of directors'' shall also include the resident manager in the United States of such a company.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 175 - Insurance › Section 180n - Adoption of Bylaws Reasonably Necessary for Operation of Company During National Emergency

Section 180N. In order to promote the general welfare and in particular the welfare of insurance beneficiaries, policyholders, injured claimants and others by enabling domestic insurance companies to continue their business in the event of a national emergency, any domestic company may adopt by-laws reasonably necessary for the operation of the company during a national emergency. The board of directors of any such company may at any time adopt emergency by-laws subject to the approval of the commissioner or a duly designated person exercising the powers of the commissioner, and subject to repeal or change by action of those having power to adopt regular by-laws for the company, which shall be operative during a national emergency and which may, notwithstanding any different provisions of the regular by-laws or of the applicable statutes, or of the company's charter, make any provision that may be reasonably necessary for the operation of the company during the period of such emergency.