Massachusetts General Laws ch. 175 sec. 174G – Definitions applicable to Secs. 174F to 174K
Section 174G. As used in sections one hundred and seventy-four F to one hundred and seventy-four K, inclusive, the following words shall, unless the context clearly requires otherwise, have the following meanings:—
Terms Used In Massachusetts General Laws ch. 175 sec. 174G
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
”Accredited state”, a state in which the insurance department or regulatory agency has qualified as meeting the minimum financial regulatory standards promulgated and established from time to time by the National Association of Insurance Commissioners.
”Control or controlled”, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting stock, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of official position or positions with or corporate office or offices held by, the person or persons. Control shall be presumed to exist if any person, directly or indirectly, owns, controls, holds, with the present power to vote, or holds proxies representing, more than ten percent of the voting stock of any other person. Such presumption may be rebutted by a showing made to the satisfaction of the commissioner that control does not exist in fact. The commissioner may determine after furnishing all persons in interest notice and opportunity to be heard and making specific findings of fact to support such determination, that control exists in fact, notwithstanding the absence of a presumption to that effect.
”Controlled insurer”, an insurer which is controlled, directly or indirectly, by a broker or group of brokers.
”Controlling broker”, a broker or group of brokers who, directly or indirectly, controls an insurer.
”Insurer”, any person, firm, association or corporation duly licensed or approved to transact a property or casualty insurance business in this commonwealth. The following are not insurers for the purposes of this section:
(a) All risk retention groups as defined in the Superfund Amendments Reauthorization Act of 1986 (Public Law No. 99–499, 100 Stat 1613), and the Risk Retention Act (15 USC Section 3901 et seq.) and chapter one hundred and seventy-six I;
(b) All residual market pools and joint underwriting authorities or associations; and
(c) All captive insurers, for the purposes of these sections one hundred and seventy-four F to one hundred and seventy-four K, inclusive, captive insurers are insurance companies owned by another organization whose exclusive purpose is to insure risks of the parent organization and affiliated companies or, in the case of groups and associations, insurance organizations, owned by the insureds, whose exclusive purpose is to insure risks to member organizations and group members and their affiliates.
”Broker”, an insurance broker or brokers or any other person, firm, association or corporation when, for any compensation, commission or other thing of value, such person, firm, association or corporation acts or aids in any manner in soliciting, negotiating or procuring the making of any insurance contract on behalf of an insured other than the person, firm, association or corporation.