Chapter 175

Section 19E. Upon compliance with the requirements and completion of the proceedings prescribed by this section, a domestic mutual life insurance company may (i) convert into a domestic stock life insurance company or (ii) so convert as part of a plan of reorganization in which a…

Section 19F. Upon compliance with the requirements and completion of the proceedings prescribed by sections 19G to 19W, inclusive, a domestic mutual insurance company may be reorganized as a domestic stock insurer owned, directly or indirectly, by a mutual holding company.

Section 19G. As used in sections 19F to 19W, inclusive, the following words shall, unless the context requires otherwise, have the following meanings:— ''Adoption date'', the date the board of directors approves the plan of reorganization. ''Articles of organization'' or ''charte…

Section 19H. (a) The plan of reorganization shall include appropriate proceedings for amending the mutual insurer's articles of organization to give effect to the reorganization from a mutual insurer into a stock corporation. The plan of reorganization shall be: (1) approved by v…

Section 19I. No director, officer, agent or employee of the reorganizing insurer, or any other person, shall receive any fee, commission or other valuable consideration whatsoever, other than his usual regular salary and compensation, for in any manner aiding, promoting or assist…

Section 19J. At any time before the plan of reorganization becomes effective as provided in subsections (a) to (n), inclusive, of section 19K, the mutual insurer may, by vote of a three-fourths majority of the board of directors, withdraw or amend the plan of reorganization. Any …

Section 19K. Upon consent by the commissioner to the plan of reorganization of a mutual insurer and filing of the plan of reorganization in accordance with the provisions of clause (4) of subsection (a) of section 19H, the commissioner shall issue a new certificate of authority t…

Section 19L. (a) Notwithstanding any general or special law to the contrary and except as otherwise provided in subsections (c) and (d), actions concerning any plan of reorganization, proposed plan of reorganization, or any plan amendment or proposed plan amendment under section …

Section 19M. (a) The amended articles of organization of a reorganized insurer that have been adopted pursuant to a plan of reorganization and filed with the state secretary in accordance with subsections (a) to (n), inclusive, of section 19K may be further amended after the effe…

Section 19N. If the name of a mutual insurer reorganizing to a stock insurer pursuant to sections 19F to 19W, inclusive, includes the word mutual, the new stock insurer may continue to use the word mutual in its name unless the commissioner finds that the continued use of the wor…

Section 19O. In addition to any dividend in compliance with section 72, a reorganized insurer may, either pursuant to the plan of reorganization or upon the prior approval of the commissioner, on any one or more occasions on or after the effective date, transfer assets or liabili…

Section 19P. (a) The offering of voting stock by the reorganized insurer or intermediate stock holding company to any person other than the mutual holding company or a wholly owned subsidiary thereof, which offering is the first to occur after the effective date of the plan of re…

Section 19Q. In the case of a reorganizing insurer that is a mutual life insurer, upon the effective date the reorganizing insurer shall, at its option, either: (1)(i) establish a closed block, for policyholder dividend purposes only, consisting of all of the participating indivi…

Section 19R. Other requirements applicable to a reorganizing insurer, an intermediate stock holding company and a mutual holding company shall be as follows: (1) Notwithstanding any other provision of the General Laws, nothing in this section shall be deemed to prohibit provision…

Section 19S. (a) Two or more mutual holding companies, at least one of which is a domestic company, may merge or consolidate under the laws of any state of the United States, into a mutual holding company incorporated under the laws of such state. The resulting corporation may be…

Section 19T. (a) By complying with the provisions of sections 19F to 19W, inclusive, a domestic mutual insurance company may reorganize with an existing domestic or foreign mutual holding company, in which case the plan of reorganization of the domestic mutual insurer shall provi…

Section 19U. (a) A domestic mutual holding company may convert into a domestic stock corporation pursuant to a plan of conversion which complies with subsection (b). (b)(1) The commissioner shall hold a public hearing upon the fairness of the terms and conditions of the plan of c…

Section 19V. Any transaction entered into by a mutual insurer, either during or after the reorganization process authorized by sections 19F to 19W, inclusive, a principal purpose of which is to avoid the total gross investment income earned excise imposed by section 22A of chapte…

Section 19W. The commissioner shall promulgate regulations necessary to implement the provisions of sections 19F to 19U, inclusive.

Section 19X. (a) A mutual company, as defined in section 19G, shall provide clear, concise and understandable disclosure of all compensation awarded to, earned by or paid to the named executive officers or directors designated in subsection (b). A mutual company shall conspicuous…

Section 2. A contract of insurance is an agreement by which one party for a consideration promises to pay money or its equivalent, or to do an act valuable to the insured, upon the destruction, loss or injury of something in which the other party has an interest.

Section 20. (a) A domestic company, except as herein provided, may reinsure in any other company any part or all of any risks assumed by it, and shall file with the annual statement required by section 25 and at such other times as the commissioner may require, schedules of all r…

Section 204. The commissioner shall, after notice and hearing pursuant to chapter thirty A, promulgate regulations governing the replacement of life insurance policies and annuities. Such regulations shall be based upon the model regulation governing replacement of life insurance…

Section 205. Notwithstanding any provision of sections one hundred and eight, one hundred and ten, one hundred and ninety A, one hundred and ninety B and one hundred and ninety C of chapter one hundred and seventy-five to the contrary, no policy which provides supplemental covera…

Section 206. As used in sections two hundred and six, two hundred and six A, two hundred and six B, two hundred and six C, and two hundred and six D, the following words shall, unless the context clearly requires otherwise, have the following meaning:— ''Affiliate'', an affiliate…

Section 206A. (a) In addition to capital stock investments authorized or permitted elsewhere in this chapter, and provided that the insurer has satisfied the requirements of section sixty-three applicable to the insurer, any domestic insurer, either by itself or in cooperation wi…

Section 206B. (a) No person other than the issuer shall make a tender offer for or a request or invitation for tenders of, or enter into any agreement to exchange securities or, seek to acquire, or acquire, in the open market or otherwise, any voting security of a domestic insure…

Section 206C. (a) Every insurer which is authorized to do business in the commonwealth and which is a member of an insurance holding company system shall register with the commissioner, except a foreign insurer subject to registration requirements and standards adopted by statute…

Section 206D. (a)(1) Whenever it appears to the commissioner that any insurer or any director, officer, employee or agent thereof has committed or is about to commit a violation of sections two hundred and six to two hundred and six D, inclusive or any rule, regulation or order i…

Section 207. (a) As used in this section, the following words shall, unless the context clearly requires otherwise, have the following meanings:— ''Parent corporation'', a corporation organized for any purpose under the law of the commonwealth or any other jurisdiction, owning di…

Section 208. Any member of an insurance holding company system, as such is described in sections two hundred and six to two hundred and six D, inclusive, may, at any time that its assets are at least eighty percent committed to or used in the insurance business of its domestic in…

Section 209. The commissioner may issue a license pursuant to section 162M and section 162N to a bank or credit union chartered by the commonwealth pursuant to chapter 168, 170, 171 or 172, and to a bank or credit union chartered by the United States, to act as an insurance produ…

Section 20A. (1) Credit for reinsurance shall be allowed a domestic ceding insurer as either an asset or a deduction from liability on account of reinsurance ceded only when the reinsurer meets the requirements of paragraph (A), (B), (C), (D), (E), (E1/2) or (F) of this subsectio…

Section 21. No company other than a life company shall insure in a single risk an amount larger than ten percent of its surplus to policyholders, unless it has reinsured, as provided in section twenty, the excess over said limit to take effect simultaneously with the original con…

Section 210. The commissioner, in conjunction with the commissioner of banks, shall establish a procedure for the prompt resolution of consumer complaints relative to the activities of a bank or credit union as a licensed insurance agent or broker.

Section 211. The commissioner may, in his discretion, furnish to the commissioner of banks and to federal bank regulatory agencies information relating to the insurance activities of any bank or federal bank, as those terms are defined in section 1 of chapter 167, and to federal …

Section 212. As used in this section and sections 213 to 223E, inclusive, the following words shall have the following meanings unless the context clearly requires otherwise: ''Advertisement'', a written, electronic or printed communication or a communication by means of a record…

Section 213. (a) No person shall act as a life settlement provider or, except as provided in clauses (c) and (d), a life settlement broker with an owner who is a resident of the commonwealth, without first obtaining a license from the commissioner. (b) The secretary of administra…

Section 214. (a) The commissioner may suspend, revoke or refuse to renew the license of a licensee if the commissioner finds that: (1) there was a material misrepresentation in the application for the license; (2) the licensee or any officer, partner, member or director has been …

Section 215. (a) No person shall use any form of life settlement contract or provide to an owner a disclosure statement form unless it has been filed with and approved by the commissioner. The commissioner shall disapprove a life settlement contract form or disclosure statement f…

Section 216. (a) A life settlement provider shall file with the commissioner, annually on or before March 1, a statement containing such information as the commissioner may prescribe by regulation. In addition to any other requirements, the annual statement shall: (i) specify the…

Section 217. (a) Except as otherwise authorized or required by law, a life settlement provider, life settlement broker, insurance company, life insurance producer, information bureau, rating agency or company or any other person with actual knowledge of an insured's identity shal…

Section 218. (a) The commissioner may, when the commissioner deems it reasonably necessary to protect the interests of the public, examine the business and affairs of any licensee or applicant for a license. The commissioner may order a licensee or applicant to produce records, b…

Section 219. (a) A licensed life settlement broker or life settlement provider may conduct or participate in advertisements. The advertisements shall comply with all advertising laws or rules and regulations promulgated by the commissioner that are applicable to insurers, life in…

Section 22. No company and no officer or agent thereof shall make, issue or deliver any policy of insurance or any annuity or pure endowment contract containing any condition, stipulation or agreement depriving the courts of the commonwealth of jurisdiction of actions against it;…

Section 220. (a) Not later than the date of application for a life settlement contract, a life settlement provider shall provide to the owner, in a separate document signed by the owner, the following information: (1) that possible alternatives to life settlement contracts exist …

Section 221. (a) Insurance carriers may inquire in the application for insurance whether the proposed owner intends to pay premiums with the assistance of financing from a lender that will use the policy as collateral to support the financing. (b) If the premium finance loan prov…

Section 222. (a) A life settlement provider entering into a life settlement contract with an owner of a policy, where the insured has a terminal or chronic illness or condition, shall first obtain: (1) if the owner is the insured, a written statement from a licensed attending phy…

Section 223. (a) If there is more than 1 owner on a single policy and the owners are residents of different states, the life settlement contract shall be governed by the law of the state in which the owner having the largest percentage of ownership resides or, if the owners hold …

Section 223A. (a) A person shall not commit a fraudulent life settlement act. (b) ''Fraudulent life settlement act'' shall mean: (1) an act or omission committed by a person who, in connection with a life settlement contract, knowingly and with an intent to defraud, for the purpo…