Massachusetts General Laws ch. 26 sec. 8C – Assessments against licensed insurers
Section 8C. The commissioner of insurance may make an assessment in each fiscal year against all licensed insurers in the commonwealth. Said assessments shall be made at a rate as shall be determined and certified annually by the commissioner as sufficient to produce revenue to reimburse the commonwealth for funds appropriated for the operation of the division of insurance, hereinafter called the division, less any revenues which were received by the commonwealth under the provisions of section eight B and section fourteen of chapter one hundred and seventy-five, but in no event shall said assessment exceed the sum of two million dollars. Three-fourths of the amount to be so assessed shall be made against all licensed domestic companies and foreign companies in proportion to their net premiums written and annuity considerations in the commonwealth as shown in the annual report of each of said insurers filed with the division; and, in addition, one-fourth of said amount shall be made against all licensed domestic companies in proportion to their net premiums written and annuity considerations as shown in the annual report of each of said insurers filed with the division.
Terms Used In Massachusetts General Laws ch. 26 sec. 8C
- 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.
- 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.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
Said assessment shall reimburse the commonwealth for funds appropriated for the prior fiscal year.
Assessments under this section shall be charged to the normal operating cost of each company.
For the purposes of this section, the term ”licensed insurer” shall have the same meaning as the word ”company” as defined in section one of chapter one hundred and seventy-five, and as the words ”fraternal-benefit society” as defined in section one of chapter one hundred and seventy-six, and as the words ”non-profit hospital service corporation” as defined in section one of chapter one hundred and seventy-six A, and as the words ”medical service corporation” as defined by section one of chapter one hundred and seventy-six B.