Massachusetts General Laws ch. 175 sec. 23 – Life company; impairment of funds; issuance of policies; penalty
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Section 23. No life company whose actual funds, exclusive of its capital, are not of a net cash value equal to its liabilities, including the net value of its policies, computed by the rules of valuation established by sections nine and eleven, shall issue new policies of life or endowment insurance or annuity or pure endowment contracts until its funds have become equal to its liabilities, and it has obtained from the commissioner a certificate to that effect with authority to resume business. A company or any officer or agent thereof who issues any such policy or contract in violation of this section shall forfeit not more than one thousand dollars.
Terms Used In Massachusetts General Laws ch. 175 sec. 23
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.