Massachusetts General Laws ch. 175 sec. 224 – Large commercial policy holders; definitions; commercial risks; records examination
Section 224. (a) For the purposes of this section, the following words shall have the following meanings:
Terms Used In Massachusetts General Laws ch. 175 sec. 224
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- 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.
- Oversight: Committee review of the activities of a Federal agency or program.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
”Contract of insurance”, a contract of insurance as defined in section 2 providing for property or casualty insurance coverages or any combination thereof.
”Large commercial policyholder”, the holder of a contract of insurance which is a corporation, partnership, trust, sole proprietorship or other business or public entity, has aggregate property and casualty insurance premiums of $30,000 excluding workers’ compensation, which has certified that it elects to be treated as a large commercial policyholder and understands the limited regulatory oversight that the election connotes and has certified that it meets 2 of the following criteria:
(1) net worth of $10,000,000;
(2) net revenue or sales of $5,000,000;
(3) more than 25 employees per individual company or more than 50 employees per holding company aggregate;
(4) nonprofit or public entity with an annual budget or assets of $25,000,000 or more;
(5) municipality with a population of 20,000 or more; or
(6) retains a risk manager who shall be a full-time employee or a person retained by a large commercial policyholder, either of which shall be licensed and shall be 1 of the following:— (i) a certified insurance counselor; (ii) a chartered property and casualty underwriter; (iii) an associate in risk management; (iv) a certified risk manager; or (v) a licensed insurance advisor in property and casualty insurance.
(b) As they relate to the regulation of policy form and content and the filing, approval and fixing and establishing of rates, section 6 of chapter 174A, chapter 175, including, but not limited to, sections 22A, 157, 193F, 193G, and 193H, chapter 175A, chapter 175B, chapter 175C, chapter 175D and chapter 176H shall not apply to a contract of insurance issued to a large commercial policyholder. Notwithstanding other requirements of this section, an insurer issuing a contract of insurance to a large commercial policyholder shall maintain underwriting files, premium, loss and expense statistics, financial and other records with regard to the contract of insurance which shall be subject to examination by the commissioner pursuant to section 4.