Massachusetts General Laws ch. 152 sec. 25Q – Premium payment plans; loss reserves; bad debt reserves
Section 25Q. (1) Each group shall establish with the approval of the commissioner of insurance a premium payment plan which shall include an initial payment by each member of at least twenty-five per cent of that member’s annual premium before the start of the group’s fund year and payment of the balance of each member’s annual premium within the first eight months of that fund year in monthly or quarterly installments.
(2) Each group shall establish and maintain actuarially appropriate loss reserves which shall include reserves for known claims and expenses associated therewith and claims incurred but not reported and expenses associated therewith.
(3) Each group shall establish and maintain bad debt reserves based on the historical experience of the group or other groups.
(4) Subsections (1) and (3) shall not apply to public employer groups; provided, however, that public employer groups shall establish a premium payment plan acceptable to the commissioner.