REGULATION OF RATES FOR CERTAIN CASUALTY INSURANCE, INCLUDING FIDELITY, SURETY AND GUARANTY BONDS, AND FOR ALL OTHER FORMS OF MOTOR VEHICLE INSURANCE, AND REGULATION OF RATING ORGANIZATIONS

M.G.L. pt. Part I, tit. Title XXII, ch. c. 175A

in effect

M.G.L. c. 175A, § 1 Title

c. 175A, § 1. Title Section 1. This chapter shall be known and may be cited as the Casualty and Surety Rate Regulatory Law.

c. 175A, § 2. Purpose Section 2. The purpose of this chapter is to promote the public welfare by regulating insurance rates to the end that they shall not be excessive, inadequate or unfairly discriminatory, and to authorize and regulate co-operative action among insurers in rate making and in other matters within the scope of this chapter. Nothing in this chapter is intended (1) to prohibit or discourage reasonable competition, or (2) to prohibit, or encourage except to the extent necessary to accomplish the aforementioned purpose, uniformity in insurance rates, rating systems, rating plans or practices. This chapter shall be liberally interpreted to carry into effect the provisions of this section.

M.G.L. c. 175A, § 3 Definitions

c. 175A, § 3. Definitions Section 3. The following words, as used in this chapter, unless the text otherwise requires or a different meaning is specifically required, shall mean— ''Commissioner'', the commissioner of insurance. ''Company'', all corporations, associations, partnerships or individuals engaged as principals in the business of insurance. ''Insurance Company'' or ''Insurer'', the same meaning as company.

M.G.L. c. 175A, § 4 Application; exceptions

c. 175A, § 4. Application; exceptions Section 4. This chapter shall apply to risks and operations in this commonwealth insured by insurance companies authorized to transact business in this commonwealth under subdivisions (d), (e) and (f) of the Second clause, under the Third, Fourth, and Fifth clauses, under subdivisions (b), and (c) of the Sixth clause, and under the Seventh, Eighth, Ninth, Tenth and Twelfth clauses of section forty-seven of chapter one hundred and seventy-five, even though such risks or operations are covered by policies or contracts of insurance issued pursuant to section twenty-two A of said chapter one hundred and seventy-five providing coverage under the aforementioned and any other clauses or subdivisions, other than subdivision (e) of the Sixth clause, of said section forty-seven of said chapter one hundred and seventy-five which, as part of the coverage thereof, insure real or personal property against loss or damage by fire at residential locations or which, as part of the coverage thereof, insure the output of a manufacturer against such loss or damage by fire at locations other than his manufacturing premises. This chapter shall also apply to insured legal services plans and membership legal services plans under the provisions of chapter one hundred and seventy-six H, and to regulation of rates for such motor vehicle insurance as is provided through the plan approved under section one hundred and thirteen H of chapter one hundred and seventy-five. The provisions of this chapter shall not apply to reinsurance other than joint reinsurance to the extent stated in section thirteen, nor to insurance against loss of or damage to aircraft or against liability arising out of the ownership, maintenance or use of aircraft, nor to motor vehicle liability insurance coverage which is subject to the provisions of section one hundred and thirteen B of chapter one hundred and seventy-five, including those coverages described in section thirty-four A of chapter ninety and section one hundred and thirteen C of said chapter one hundred and seventy-five except as provided through a plan approved under section one hundred and thirteen H of chapter one hundred and seventy-five. If any kind of insurance, subdivision or combination thereof, or type of coverage, subject to this chapter, is also subject to regulation by another rate regulatory law of this commonwealth, an insurer to which both laws are otherwise applicable shall file with the commissioner a designation as to which rate regulatory law shall be applicable to it with respect to such kind of insurance, subdivision or combination thereof, or type of coverage.

M.G.L. c. 175A, § 5 Rates; regulatory provisions; insurance company groups

c. 175A, § 5. Rates; regulatory provisions; insurance company groups Section 5. (a) All rates shall be made in accordance with the following provisions:— 1. Due consideration shall be given to past and prospective loss experience, within and outside this commonwealth, to catastrophe hazards, if any, to a reasonable margin for underwriting profit and contingencies, to investment income on unearned premium reserves and loss reserves, to dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers, to past and prospective expenses both countrywide and those specially applicable to this commonwealth, and to all other relevant factors within and outside this commonwealth. 2. The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of any such insurer or group with respect to any kind of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable. 3. Risks may be grouped by classifications for the establishment of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. Such standards may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expenses. 4. Rates shall not be excessive, inadequate or unfairly discriminatory. (b) Except to the extent necessary to meet the provisions of subdivision 4 of subsection (a) of this section, uniformity among insurers in any matters within the scope of this section is neither required nor prohibited. (c) Nothing in this section shall be taken to prohibit as unreasonable or unfairly discriminatory the establishment of classifications or modifications of classifications or risks based upon size, expense, management, individual experience, purpose of insurance, location or dispersion of hazard, or any other reasonable considerations, provided such classifications and modifications apply to all risks under the same or substantially similar circumstances or conditions. (d) Nothing in this chapter shall abridge or restrict the freedom of contract between insurers and agents or brokers with respect to commissions or between insurers and their employees with respect to compensation. (e) Two or more insurers who by virtue of their business associations in the United States represent themselves to be or are customarily known as an ''insurance company group'', or similar insurance trade designation, shall have the right to make the same filings or to use the same rates for each such insurer subject to the provisions of subdivisions 1 to 4, inclusive, of subsection (a) of this section; and nothing contained in this chapter shall be construed to prohibit an agreement to make the same filings or use the same rates and concerted action in connection with such filings or rates by such insurers. This subsection shall not apply to two or more insurers who are not under the same common executive or general management or control and who act in concert in underwriting groups or pools.

M.G.L. c. 175A, § 5A Repealed, 1994, 330, Sec. 5

M.G.L. c. 175A, § 5B Terminated, 1986, 351, Sec. 18

M.G.L. c. 175A, § 5C Experience review plans

c. 175A, § 5C. Experience review plans Section 5C. (a)(1) The medical professional mutual insurance company approved by the commissioner is hereby authorized to establish an experience review plan for all physicians insured by it. Such experience review plan shall be administered by an experience review committee established by the insurer. The said committee (i) shall consist of an even number of standing voting members, not to be less than six; and (ii) shall include physicians licensed to practice in the commonwealth as one-half of the standing voting members. The said committee shall include as physician members only physicians appointed by the insurer from a list of nominees provided by the Massachusetts medical society, which nominees shall not all be members of said Massachusetts medical society. An additional representative of the medical professional mutual insurance company may sit as a member of the committee but shall vote only in the event of a tie vote of the other members. (2) Said committee is hereby authorized to review the medical malpractice claim experience of insured physicians and any other relevant information obtained by the medical professional mutual insurance company through its risk management or underwriting activities. The purpose of this review is for the committee to determine, on the basis of the physician's experience, whether remedial action may reduce the possibility that the physician's practice may result in future incidents of medical malpractice, and, if so, to implement the remedial action or actions which the committee determines are indicated. If the committee determines remedial action should be implemented, it shall implement secondary remedial actions only if the committee determines (i) that primary remedial action has not or is unlikely to reduce the possibility that the physician's practice may result in future incidents of medical malpractice, or (ii) that the physician has failed or refused to comply with remedial actions implemented by the committee. Primary remedial actions are those listed in subsection (a)(3) which are not designated secondary remedial actions, and remedial actions not listed in paragraph (3) which are not designated secondary when approved for use by the commissioner. Secondary remedial actions are those listed in clauses (vi), (vii) and (viii) of said paragraph (3); similarly stringent actions not listed shall be designated secondary remedial actions when approved for use by the commissioner. In determining whether to impose remedial action, and in determining the remedial action or actions to be imposed, the experience review committee shall make its determinations solely with reference to this subsection, which is the complete and exclusive standard for such determinations by the experience review committee. (3) The said committee is authorized to recommend and implement remedial action as provided in this subsection with respect to an insured whose medical malpractice claim experience has been reviewed. The following committee remedial actions are hereby authorized: (i) consultation with the medical professional mutual insurance company's risk management staff; (ii) audits by the medical professional mutual insurance company's risk management staff; (iii) required additional education, including residency or other training programs; (iv) ineligibility for risk management, limited practice or other applicable medical malpractice insurance discounts; (v) required consultation with or supervision by another physician; (vi) restriction of coverage to exclude coverage for a particular specialty, procedure, or medical setting; (vii) imposition of a co-payment with respect to claims asserted against the physician involving a particular specialty or procedure; provided, however, that in no event shall the committee established by the medical professional mutual insurance company impose a co-payment which is less than a minimum set out in the experience review plan or more than fifty percent per claim or in excess of fifty thousand dollars per claim for any co-payment; (viii) imposition of added charges; provided, however, that in no event shall the committee established by the medical professional mutual insurance company impose an added charge on an insured less than a minimum set out in the experience review plan or more than fifty percent of the insured's total limits premium; and (ix) any other remedial action as the commissioner may approve which is consistent with the provisions of this section. In the event the experience review committee adopts a remedial action of a type not specified in the experience review plan, the committee shall, at least thirty days before the effective date of such remedial action, advise the commissioner of the particular terms of the proposed remedial action and indicate how it is consistent with this section. Unless the commissioner disapproves the proposed remedial action before it goes into effect, such remedial action shall be deemed approved. (4) Prior to adopting any remedial action with respect to an insured, the committee shall provide written notice to the insured of remedial action determined by it, the reasons supporting the committee's determination, and the commencement date for the remedial action, which shall not be less than thirty days from the date of the notice. The notice shall advise the insured that he may meet with the committee to obtain a further explanation of the committee's determination and to respond to the determination, and shall specify the time within which such a meeting may be requested, which shall not be less than ten business days from the insured's receipt of the notice. If the insured does not request a meeting with the committee within the time specified, he shall be deemed to have accepted the proposed remedial action, and to have waived his right to further review of the remedial action by the committee or pursuant to paragraph (6). If the insured requests a meeting with the committee, the committee shall hold a meeting prior to implementing any remedial action with respect to the insured. (5) The medical professional mutual insurance company approved by the commissioner is hereby authorized to issue endorsements to the insured's medical malpractice insurance policy and to take such other action as is necessary to implement the remedial action adopted by said committee. In no event shall the experience review committee established by the medical professional mutual insurance company deny all coverage to a duly licensed physician based upon review under the plan if the company is required to make medical malpractice insurance coverage available to such physician pursuant to section one hundred and ninety-three T of chapter one hundred and seventy-five; provided, however, that the medical professional mutual insurance company may require completion of any recommended remedial actions as a condition of continued coverage. The failure to pay a co-payment or an added charge imposed by the committee shall constitute a failure to pay premium due to the medical professional mutual insurance company which may result in cancellation of insurance or the denial of coverage by the Massachusetts medical malpractice reinsurance plan approved by the commissioner. The medical professional mutual insurance company is authorized to implement remedial actions which shall continue to apply automatically to renewals of the insured's policy as provided in the experience review plan. (6) Any person aggrieved by a final determination of the committee under this section may, within thirty days from the notice of such final determination, file a complaint in the superior court for the county of Suffolk for a review of such determination. An order of notice returnable not later than twenty days from the filing of such complaint shall forthwith issue and be served upon the medical professional mutual insurance company. Within ten days after the return of said order of notice the complaint will be assigned for a speedy hearing on the merits without a jury. Unless the court orders otherwise, imposition of remedial action by the insurer shall be stayed pending review by the court. The court shall have jurisdiction to modify, amend, annul, reverse or affirm the final determination of the committee, shall review all questions of fact and law involved therein and may make any appropriate judgment. The decision of the court shall be final and conclusive on the parties. The court may make such order as to costs as it deems equitable. The court may make such rules or orders as it deems proper, governing proceedings under this section to secure prompt and speedy hearings and to expedite final decisions thereon. (7) Within thirty days from the effective date of this section the medical professional mutual insurance company shall file a proposed experience review plan with the commissioner; provided, however, that said insurer which becomes subject to this section more than thirty days after the effective date of this section, shall be required to file a proposed experience review plan within thirty days from the date said insurer becomes subject to this section. The commissioner shall either approve, disapprove or approve with modifications such plan following comment at a public hearing so that the plan is consistent with the requirements of this section. The commissioner shall sign a memorandum approving, disapproving, or approving with modifications the proposed plan in such form as he may prescribe within sixty days of the filing of such plan by the medical professional mutual insurance company and file the same in his office and cause a duly certified copy of such memorandum to be transmitted forthwith to the insurer and other parties to the public hearing. Any person who participates in the public hearing and who is aggrieved by the decision of the commissioner may, within twenty days from the filing of such decision thereof in his office, file a complaint in the supreme judicial court for the county of Suffolk for a review of such action, order, finding or decision. An order of notice returnable not later than seven days from the filing of such complaint shall forthwith issue and be served upon the commissioner. Within ten days after the return of said order of notice, the complaint shall be assigned for a speedy and summary hearing on the merits. The action, order, finding or decision of the commissioner shall remain in full force and effect pending the final decision of the court unless the court or a justice thereof after notice to the commissioner shall by a special order or otherwise direct. The court shall have jurisdiction to modify, amend, annul, reverse or affirm such action, order, finding or decision, shall review all questions of fact and of law involved therein and may make any appropriate judgment. The decision of the court shall be final and conclusive on the parties. The court may make such order as to costs as it deems equitable. The court shall make such rules or orders as it deems proper, governing proceedings under this section to secure prompt and speedy hearings and to expedite final decisions thereon. (8) Except as otherwise indicated in this section, any modifications to or termination of the experience review plan previously approved by the commissioner shall be subject to the following: (i) The approved experience review plan shall continue indefinitely until terminated or modified; provided, however, that an approved plan may contain a self-termination provision. (ii) Starting on July first, nineteen hundred and ninety-two, and on July first of every even-numbered year thereafter, the commissioner may, if he issues a request for public comment before September fifteenth of the preceding year, undertake a review of any experience review plan previously approved by him. Following such a request, he shall terminate such plan unless he finds it in accordance with this section. (iii) Starting on August first, nineteen hundred and ninety-one, and on August first of every odd-numbered year thereafter, any party interested in the experience review plan previously approved by the commissioner, including the medical professional mutual insurance company to which the plan applies, may submit proposed changes in the plan to the commissioner and the insurer whether or not public comment is formally requested under subparagraph (ii). In addition to stating the revised language of the plan, such a proposal shall contain supporting documents and discuss the reasons for the proposed changes. Only portions of a plan for which changes have been so proposed are subject to revision. After comment at a public hearing, the commissioner shall either maintain the plan in effect without change, terminate the plan, or adopt modifications to one or more portions of the plan for which changes have been proposed. Any such modifications to the plan shall be consistent with the requirements of this section, and shall not be implemented before July first of the year following the submission of the proposed change. A modification to the medical professional mutual insurance company's plan proposed by a party other than said insurer may be approved only if, on the basis of all of the materials and information which are in the record of the public hearing, the record demonstrates that the modification will the first sentence improve the effectiveness of the previously approved plan in carrying out the purposes of this section, and that such improvements will not cause costs or administrative burdens to the insurer or its policyholders which are unreasonable in relation to the benefits of the improvements. (iv) If the commissioner and the medical professional mutual insurance company agree on a proposed change, the proposed change may be made at any time, following public notice and an opportunity for comment, to become effective upon the commissioner's order. (v) Decisions under subparagraph (ii) to (iv), inclusive, shall be subject to judicial review in the supreme judicial court as provided in paragraph (7). (9) There shall be no liability on the part of, and no cause of action of any nature shall rise against, the commissioner or his authorized representatives for any statements made in good faith by them in any report or communications concerning matters covered by this section. (10) No experience review committee, medical professional mutual insurance company, individual or institution reporting, providing information, opinion, counsel or services to the experience review committee or participating in the procedures required by this section or any experience review plan approved hereunder, shall be liable in a suit for damages or subject to a cause of action of any kind by reason of having furnished such information, opinion, counsel or services or by reason of such participation; provided, however, that such individual or institution acted in good faith with a reasonable belief that said actions were warranted in connection with or in furtherance of the functions of the experience review committee or the procedures required by this section or the experience review plan approved hereunder. (b)(1) The proceedings, records and reports of the experience review committee established pursuant to this section shall be confidential and treated as described in paragraphs (2) to (9), inclusive. The records and report described in paragraphs (5) and (6) shall be exempt from disclosure as public records pursuant to section seven of chapter four. (2) Except in connection with an appeal provided in paragraph (6) of subsection (a), or a suit against any individual or institution to establish a cause of action pursuant to paragraph (10) of said subsection (a), documents identified in paragraphs (1), (5) and (6) of this subsection shall not be subject to subpoena or discovery, or introduced into evidence in any medical staff proceeding or administrative proceeding or in any judicial action; provided, however, that documents, reports or records otherwise available from original sources shall not be immune from subpoena, discovery or use in any judicial or administrative proceeding merely because they were presented to an experience review committee in connection with its proceedings. A court or administrative body may place reasonable restriction on the use which may be made of the information to which subsection (b) applies, including any decision rendered as the first sentence provided in paragraph (6) of subsection (a), so as to maintain so far as necessary or practicable the confidentiality of such information. (3) Except in connection with an appeal provided in paragraph (6) of subsection (a), or a suit against any individual or institution to establish a cause of action pursuant to paragraph (10) of said subsection (a), no person who was in attendance at the meeting of an experience review committee shall be permitted or required to testify in any medical staff proceeding or administrative proceeding or in any judicial action as to the committee's or any member's findings, recommendations, evaluations, opinion, deliberations or other actions. (4) A person who provides information to the experience review committee or who is a member of the committee shall not be prevented from testifying as to matters known to such person independent of the committee's proceedings; provided, however, that such person may not be questioned in any proceedings about the identity of any person furnishing information or opinions to the committee, opinions formed by the testifying person as a result of such committee proceedings, or about the deliberations of the experience review committee. (5) In the event of an appeal under paragraph (6) of subsection (a), the record on appeal shall be confidential and treated as provided in paragraph (2) of this subsection. (6) The medical professional mutual insurance company shall only report to the board of registration in medicine the imposition of voluntary or involuntary remedial actions described in clauses (vi) or (vii) of paragraph (3) of subsection (a). Such reports shall be considered confidential information subject to the requirements of section five of chapter one hundred and twelve. Such reports shall also be provided to the medical staff of any hospital or clinic at which such physician has privileges and to members and employed doctors of any partnership or professional corporation of which the insured is a member or employee. Any hospital or clinic receiving such a report may use the report to investigate or review the privileges available to such physician; provided, however, that any such report shall be maintained as confidential by any hospital or clinic and members or employed doctors of any partnership or professional corporation who receive it, and shall be treated as provided in paragraph (2) of this subsection. (7) On or before September first nineteen hundred and ninety and on or before April first of each year thereafter, the medical professional mutual insurance company shall submit to the division of insurance a list of insureds who have been reviewed under the experience review plan including insureds currently subject to remedial action. Such submission shall set forth each remedial action taken by the committee, if any, and such other information as shall be specified in the plan, consistent with the provisions of this section. Such submissions may be introduced in any hearing pursuant to paragraph (7) of subsection (a); provided, however, that information that identifies an individual physician in this report to the division of insurance shall be maintained as confidential and shall not be made part of any public record or proceeding. (8) No proceeding, report or record of an experienced review committee obtained hereunder in an appeal pursuant to paragraph (6) of subsection (a), any proceeding or appeal pursuant to paragraph (8) of said subsection (a), any action pursuant to paragraph (10) of said subsection (a), or a report pursuant to paragraph (6) or (7) of this subsection, shall be subject to subpoena or discovery, or introduced into evidence in judicial or administrative proceedings other than proceedings specified in paragraphs (6), (8) and (10) of said subsection (a), and paragraphs (6) and (7) of this subsection. (9) Nothing in this section shall be deemed to alter or amend any requirements that the medical professional mutual insurance company provide records or information not prepared in connection with the experience review committee to the board of registration in medicine or the commissioner of insurance, including, but not limited to, the reporting requirements set forth in section five C of chapter one hundred and twelve or as otherwise required by law. (c) As used in this section, the term ''medical malpractice insurance'' shall mean insurance coverage against the legal liability of the insured for loss, damage or expense incident to a claim rising out of the death or injury of any person as the result of negligence or malpractice in rendering professional services by any doctor of medicine or osteopathy licensed under section two of chapter one hundred and twelve.

M.G.L. c. 175A, § 6 Rules, rates, classifications; filing with commissioner; waiver of filing; excessive rate on specific risk; approval

c. 175A, § 6. Rules, rates, classifications; filing with commissioner; waiver of filing; excessive rate on specific risk; approval Section 6. (a) Every insurer shall file with the commissioner or his designated representative every manual of classifications, rules and rates, every rating plan and every modification of any of the foregoing which it proposes to use. Every such filing shall be made with the commissioner at least fifteen days prior to the proposed effective date thereof and shall indicate the character and extent of coverage contemplated and the extent and nature of any change in rates, rating plans or premium charges. The commissioner may by order delay the effective date for not more than thirty additional days in any case where he determines such delay is needed to properly examine the filing and any supporting information filed as requested or to permit a hearing thereon; provided further, however, that, if such filing is made by a medical malpractice insurer with respect to medical malpractice insurance, the commissioner may further delay the effective date of such filing for not more than ninety additional days. The commissioner may require such insurer to furnish the information upon which it supports such filing. Any filing may be supported by (1) the experience or judgment of the insurer or rating organization making the filing, (2) the experience of other insurers or rating organizations, or (3) any other factors which the insurer or rating organization deems relevant. A filing and any supporting information shall be open to public inspection after the filing becomes effective. (b) An insurer may satisfy its obligation to make such filings by becoming a member of, or a subscriber to, a licensed rating organization which makes such filings, and by authorizing the commissioner to accept such filings on its behalf; provided, that nothing contained in this chapter shall be construed as requiring any insurer to become a member of or a subscriber to any rating organization. (c) Under such rules and regulations as he shall adopt the commissioner may, by written order, suspend or modify the requirement of filing as to any kind of insurance, subdivision or combination thereof, or as to classes of risks, the rates for which cannot practically be filed before they are used. Such orders, rules and regulations shall be made known to insurers and rating organizations affected thereby. The commissioner may make such examination as he may deem advisable to ascertain whether any rates affected by such order meet the standards set forth in subdivision 4 of subsection (a) of section five. (d) Upon the written application of the insured, stating his reasons therefor, filed with and approved by the commissioner, a rate in excess of that provided by a filing otherwise applicable may be used on any specific risk. (e) Beginning ninety days after the effective date of this chapter no insurer shall make or issue a contract or policy except in accordance with filings made by or for said insurer as provided in this chapter or in accordance with subsection (c) of this section. (f) Filings may consist of manuals of classifications, rules and rates, and rating plans providing for indivisible rate or single premium for policies or contracts of insurance, including policies or contracts of insurance issued by such insurers under the authority of section twenty-two A of chapter one hundred and seventy-five and providing coverage against the hazards specified in more than one of the clauses or subdivisions of section forty-seven of said chapter one hundred and seventy-five.

M.G.L. c. 175A, § 7 Improper filing; hearings; aggrieved persons; remedies

c. 175A, § 7. Improper filing; hearings; aggrieved persons; remedies Section 7. (a) If at any time the commissioner finds that a filing does not meet the requirements of this chapter, he shall, after a hearing held upon not less than ten days' written notice, specifying the matters to be considered at such hearing, to every insurer and rating organization which made such filing, issue an order specifying in what respects he finds that such filing fails to meet the requirements of this chapter, and stating when, within a reasonable period thereafter, such filing shall be deemed no longer effective. Copies of said order shall be sent to every such insurer and rating organization. (b) Any person or organization aggrieved with respect to any filing which is in effect may make written application to the commissioner for a hearing thereon; provided, that the insurer or rating organization that made the filing shall not be authorized to proceed under this subsection. Such application shall specify the grounds to be relied upon by the applicant. If the commissioner shall find that the application is made in good faith, that the applicant would be so aggrieved if his grounds are established, and that such grounds otherwise justify holding such a hearing, he shall, within thirty days after receipt of such application, hold a hearing upon not less than ten days' written notice to the applicant and to every insurer and rating organization which made such filing. If, after such hearing, the commissioner finds that the filing does not meet the requirements of this chapter, he shall issue an order specifying in what respects he finds that such filing fails to meet the requirements of this chapter, and stating when, within a reasonable period thereafter, such filing shall be deemed no longer effective. Copies of said order shall be sent to the applicant and to every such insurer and rating organization. (c) The commissioner may also call a hearing at any time prior to the proposed effective date of any filing or any later effective date called for by order made pursuant to this chapter. If after such hearing the commissioner finds that any such filing will not meet the requirements of this chapter, said filing shall not take effect.

M.G.L. c. 175A, § 8 Rating organization; application for license; regulation; fee; subscription for services by insurer

c. 175A, § 8. Rating organization; application for license; regulation; fee; subscription for services by insurer Section 8. (a) A corporation, an unincorporated association, a partnership or an individual, whether located within or outside this commonwealth, may make application to the commissioner for license as a rating organization for such kinds of insurance or subdivisions thereof as are specified in its application and shall file therewith (1) a copy of its constitution, its articles of agreement or association or its certificate of incorporation, and of its by-laws, rules and regulations governing the conduct of its business, (2) a list of its members and subscribers, (3) the name and address of a resident of this commonwealth upon whom notices or orders of the commissioner of process affecting such rating organization may be served and (4) a statement of its qualifications as a rating organization. If the commissioner finds that the applicant is competent, trustworthy and otherwise qualified to act as a rating organization and that its constitution, articles of agreement or association or certificate of incorporation, and its by-laws, rules and regulations governing the conduct of its business conform to the requirements of law, he shall issue a license specifying the kinds of insurance or subdivisions thereof for which the applicant is authorized to act as a rating organization. Every such application shall be granted or denied in whole or in part by the commissioner within sixty days of the date of its filing with him. Licenses issued pursuant to this section shall remain in effect for three years unless sooner suspended or revoked by the commissioner. The fee for said license shall be twenty-five dollars. Licenses issued pursuant to this section may be suspended or revoked by the commissioner, after hearing upon due notice, in the event the rating organization ceases to meet the requirements of this subsection. Every rating organization shall notify the commissioner promptly of every change in (1) its constitution, its articles of agreement of association or its certificate of incorporation, and its by-laws, rules and regulations governing the conduct of its business, (2) its list of members and subscribers and (3) the name and address of the resident of this commonwealth designated by it upon whom notices or orders of the commissioner or process affecting such rating organization may be served. (b) Subject to rules and regulations which have been approved by the commissioner as reasonable, each rating organization shall permit any insurer qualifying thereunder, not a member, to be a subscriber to its rating services for any kind of insurance or subdivision thereof for which it is authorized to act as a rating organization. Notice of proposed changes in such rules and regulations shall be given to subscribers. Each rating organization shall furnish its rating services without discrimination to its members and subscribers. The reasonableness of any rule or regulation in its application to subscribers, or the refusal of any rating organization to admit a qualified insurer as a subscriber, shall, at the request of any subscriber or any such insurer, be reviewed by the commissioner at a hearing held upon at least ten days' written notice to such rating organization and to such subscriber or insurer. If the commissioner finds that such rule or regulation is unreasonable in its application to subscribers, he shall order that such rule or regulation shall not be applicable to subscribers. If the rating organization fails to grant or reject a qualified insurer's application for subscribership within thirty days after it was made, such insurer may request a review by the commissioner as if the application had been rejected. If the commissioner finds that such insurer has been refused admittance to the rating organization as a subscriber without justification, he shall order the rating organization to admit such insurer as a subscriber. If he finds that the action of the rating organization was justified, he shall make an order affirming its action. (c) No rating organization shall adopt any rule the effect of which would be to prohibit or regulate the payment of dividends, savings or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members or subscribers. (d) Co-operation among rating organizations or among rating organizations and insurers in rate making or in other matters within the scope of this chapter is hereby authorized, provided the filings resulting from such co-operation are subject to all the provisions of this chapter which are applicable to filings generally. The commissioner may review such co-operative activities and practices and if, after due notice and a hearing, he finds that any such activity or practice is unfair or unreasonable or otherwise inconsistent with any provision or provisions of this chapter, he may issue a written order specifying in what respects such activity or practice is unfair or unreasonable or otherwise inconsistent with such provision or provisions, and requiring the discontinuance of such activity or practice. (e) A rating organization may restrict its membership or subscribership if the commissioner deems it to be in the public interest.

M.G.L. c. 175A, § 9 Rating organization; rights of members

c. 175A, § 9. Rating organization; rights of members Section 9. Every member of, or subscriber to, a rating organization shall adhere to the filings made on its behalf by such organization except that any such insurer may make written application to the commissioner for permission to file a uniform percentage decrease or increase to be applied to the premiums produced by the rating system so filed for a kind of insurance, or for a class of insurance which is found by the commissioner to be a proper rating unit for the application of such uniform percentage decrease or increase, or for a subdivision of a kind of insurance (1) comprised of a group of manual classifications which is treated as a separate unit for rate making purposes, or (2) for which separate expense provisions are included in the filings of the rating organization. Such application shall specify the basis for the modification and shall be accompanied by the data upon which the applicant relies. A copy of the application and data shall be sent simultaneously to such rating organization. The commissioner shall set a time and place for a hearing at which the insurer and such rating organization may be heard and shall give them not less than ten days' written notice thereof. In the event the commissioner is advised by the rating organization that it does not desire a hearing he may, upon the consent of the applicant, waive such hearing. The commissioner shall issue an order permitting the modification for such insurer to be filed if he finds it to be justified and it shall thereupon become effective. He shall issue an order denying such application if he finds that the modification is not justified or that the resulting premiums would be excessive, inadequate or unfairly discriminatory. Each deviation permitted to be filed shall be effective for a period of one year from the date of such permission unless terminated sooner with the approval of the commissioner.

M.G.L. c. 175A, § 10 Rating organization; action or decision; appeal

c. 175A, § 10. Rating organization; action or decision; appeal Section 10. Any member of or subscriber to a rating organization may appeal to the commissioner from the action or decision of such rating organization in approving or rejecting any proposed change in or addition to the filings of such rating organization and the commissioner shall, after a hearing held upon not less than ten days' written notice to the appellant and to such rating organization, issue an order approving the action or decision of such rating organization or directing it to give further consideration to such proposal, or, if such appeal is from the action or decision of the rating organization in rejecting a proposed addition to its filings, he may, in the event he finds that such action or decision was unreasonable, issue an order directing the rating organization to make an addition to its filings, on behalf of its members and subscribers, in a manner consistent with his findings, within a reasonable time after the issuance of such order. If such appeal is based upon the failure of the rating organization to make a filing on behalf of such member or subscriber which is based on a system of expense provisions which differs, in accordance with the right granted in subdivision 2 of subsection (a) of section five, from the system of expense provisions included in a filing made by the rating organization, the commissioner shall, if he grants the appeal, order the rating organization to make the requested filing for use by the appellant. In deciding such appeal the commissioner shall apply the standards set forth in section five.

M.G.L. c. 175A, § 10A Rating organization; toll free tip line for reporting suspected motor vehicle theft; rewards for information

c. 175A, § 10A. Rating organization; toll free tip line for reporting suspected motor vehicle theft; rewards for information Section 10A. (a) An automobile insurance rating organization licensed under the provisions of section eight is hereby authorized to create a statewide toll free tip line for reporting information on stolen cars and suspected auto theft activities to the state police and the governor's auto theft strike force. Said line shall be manned between eight ante meridian and five post meridian, Mondays through Fridays, and shall utilize a message recording device at all other times. (b) Information shall be directed by the state police in conjunction with the governor's auto theft strike force to the appropriate local law enforcement agency, which shall investigate auto theft activities based on such information. The results of the investigation shall be submitted to the governor's auto theft strike force in a timely manner. (c) If the investigation made pursuant to paragraph (b) leads to an arrest or arrests and prosecution of persons involved in auto theft or related violations of law, such information which leads to the arrest and prosecution shall be reviewed by a reward committee. Such reward committee shall be created by the governor's auto theft strike force subject to the approval of the secretary of public safety and shall include representatives of local law enforcement agencies, the state police, the registry of motor vehicles and insurance companies writing automobile policies in the commonwealth. (d) The governor's auto theft strike force shall, after approval of the reward committee, reward information with: (1) up to one thousand dollars for information leading to the arrest and prosecution of suspected individual car thieves; (2) up to one thousand dollars for the issuance of a warrant for suspected car theft ring members or chop shop operators; (3) up to five thousand dollars for the arrest and binding over for trial of suspected car theft ring members or chop shop operators; (4) up to ten thousand dollars for the conviction of car theft ring members or chop shop operators. (e) In all cases, the methods for receiving and processing tips shall protect the identity of informants. (f) The governor's auto theft strike force shall contract for an advertising and public relations campaign, including public service announcements, to publicize the existence of this program. (g) All expenses and rewards incurred by said program shall be paid by the automobile insurance rating organization.

M.G.L. c. 175A, § 11 Rate information; furnishing to insured; appearance by agent or broker

c. 175A, § 11. Rate information; furnishing to insured; appearance by agent or broker Section 11. Every rating organization and every insurer which makes its own rates shall, within a reasonable time after receiving written request therefor and upon payment of such reasonable charge as it may make, furnish to any insured affected by a rate made by it, or to the authorized representative of such insured, all pertinent information as to such rate. Every rating organization and every insurer which makes its own rates shall provide within this commonwealth reasonable means whereby any person aggrieved by the application of its rating system may be heard, in person or by his authorized representative, on his written request to review the manner in which such rating system has been applied in connection with the insurance afforded him. If the rating organization or insurer fails to grant or reject such request within thirty days after it is made, the applicant may proceed in the same manner as if his application had been rejected. Any party affected by the action of such rating organization or such insurer on such request may, within thirty days after written notice of such action, appeal to the commissioner, who, after a hearing held upon not less than ten days' written notice to the appellant and to such rating organization or insurer, may affirm or reverse such action. An insurance agent licensed under the provisions of section one hundred and sixty-three of chapter one hundred and seventy-five and an insurance broker licensed under the provisions of section one hundred and sixty-six of said chapter shall have the right to appear on behalf of the assured pursuant to the provisions of this section when so authorized by him in writing.

M.G.L. c. 175A, § 12 Advisory organization

c. 175A, § 12. Advisory organization Section 12. (a) Every group, association or other organization of insurers, whether located within or outside this commonwealth, which assists insurers which make their own filings or rating organizations in rate making, by the collection and furnishing of loss or expense statistics, or by the submission of recommendations, but which does not make filings under this chapter, shall be known as an advisory organization. (b) Every advisory organization shall file with the commissioner (1) a copy of its constitution, its articles of agreement or association or its certificate of incorporation and of its by-laws, rules and regulations governing its activities, (2) a list of its members, (3) the name and address of a resident of this commonwealth upon whom notices or orders of the commissioner or process issued at his direction may be served, and (4) an agreement that the commissioner may examine such advisory organization in accordance with the provisions of section fourteen. (c) If, after a hearing, the commissioner finds that the furnishing of such information or assistance involves any act or practice which is unfair or unreasonable or otherwise inconsistent with any provision or provisions of this chapter, he may issue a written order specifying in what respects such act or practice is unfair or unreasonable or otherwise inconsistent with such provision or provisions, and requiring the discontinuance of such act or practice. (d) No insurer which makes its own filings, and no rating organization, shall support its filings by statistics or adopt rate-making recommendations, furnished to it by an advisory organization which has not complied with this section or with an order of the commissioner involving such statistics or recommendations issued under subsection (c) of this section. If the commissioner finds such insurer or rating organization to be in violation of this subsection he may issue an order requiring the discontinuance of such violation.

M.G.L. c. 175A, § 13 Joint reinsurance; regulations

c. 175A, § 13. Joint reinsurance; regulations Section 13. (a) Every group, association or other organization of insurers which engages in joint underwriting or joint reinsurance shall be subject to regulation with respect thereto as herein provided, subject, however, with respect to joint underwriting, to all other provisions of this chapter and, with respect to joint reinsurance, to sections fourteen and eighteen and nineteen. (b) If, after due notice and a hearing, the commissioner finds that any activity or practice of any such group, association or other organization is unfair or unreasonable or otherwise inconsistent with any provision or provisions of this chapter, he may issue a written order specifying in what respects such activity or practice is unfair or unreasonable or otherwise inconsistent with such provision or provisions, and requiring the discontinuance of such activity or practice.

M.G.L. c. 175A, § 14 Rating organizations, etc.; examination; confidentiality and privilege; power of commissioner; costs

c. 175A, § 14. Rating organizations, etc.; examination; confidentiality and privilege; power of commissioner; costs Section 14. The commissioner shall, at least once in five years, make or cause to be made an examination of each rating organization licensed in this commonwealth as provided in section eight and he may, as often as he may deem it expedient, make or cause to be made an examination of each advisory organization referred to in section twelve and of each group, association or other organization referred to in section thirteen. The reasonable costs of any such examination shall be paid by the rating organization, advisory organization, or group, association or other organization examined upon presentation to it of a detailed account of such costs. The officers, manager, agents and employees of such rating organization, advisory organization or group, association or other organization may be examined at any time under oath and shall exhibit all books, records, accounts, documents, or agreements governing its method of operation. In lieu of any such examination the commissioner may accept the report of an examination made by the insurance supervisory official of another state, pursuant to the laws of such state. Notwithstanding any other provision of the General Laws, including clause Twenty-sixth of section 7 of chapter 4 and chapter 66, documents, materials or other information, including but not limited to, all working papers and copies thereof created, produced or obtained by or disclosed to the commissioner or any other person in the course of an examination made pursuant to this section or in the course of analysis by the commissioner of the financial condition or market conduct of a rating organization licensed in this commonwealth as provided in section 8, an advisory organization as provided in section 12 or of each group, association or other organization referred to in section 13 shall be confidential by law and privileged, shall not be a public record under said clause Twenty-sixth, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action. The commissioner may use the documents, materials or other information in the furtherance of any regulatory or legal action brought as part of the commissioner's official duties. Documents, materials or other information, including but not limited to, all working papers and copies thereof in the possession or control of the National Association of Insurance Commissioners and its affiliates and subsidiaries shall be confidential by law and privileged, shall not be subject to subpoena and shall not be subject to discovery or admissible in evidence in any private civil action if they are: (i) created, produced, obtained by or disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries in the course of the National Association of Insurance Commissioners and its affiliates and subsidiaries assisting an examination made pursuant to this section, or assisting the commissioner in the analysis of the financial condition or market conduct of a rating organization licensed in this commonwealth as provided in section 8, an advisory organization as provided in section 12 or of each group, association or other organization referred to in section 13; or (ii) disclosed to the National Association of Insurance Commissioners and its affiliates and subsidiaries pursuant to this section by any member of the National Association of Insurance Commissioners. Neither the commissioner nor any person who received the documents, material or other information while acting under the authority of the commissioner, including the National Association of Insurance Commissioners and its affiliates and subsidiaries, shall be permitted to testify in any private civil action concerning any confidential documents, materials or information subject to this section. In order to assist in the performance of the commissioner's duties, the commissioner: (i) may share documents, materials or other information, including the confidential and privileged documents, materials or information subject to this section, with other state, federal and international regulatory agencies, the National Association of Insurance Commissioners and its affiliates and subsidiaries and state, federal and international law enforcement authorities provided that the recipient agrees to maintain the confidentiality and privileged status of the document, material, communication or other information; (ii) may receive documents, materials, communications or information, including otherwise confidential and privileged documents, materials or information, from the National Association of Insurance Commissioners and its affiliates and subsidiaries and regulatory and law enforcement officials of other foreign or domestic jurisdictions and shall maintain as confidential or privileged any document, material or information received with notice or the understanding that it is confidential or privileged under the laws of the jurisdiction that is the source of the document, material or information; and (iii) may enter into agreements governing sharing and use of information consistent with this section. No waiver of any applicable privilege or claim of confidentiality in the documents, materials or information shall occur as a result of disclosure to the commissioner under this section or as a result of sharing as authorized in this section. A privilege established under the law of any state or jurisdiction that is substantially similar to the privilege established under this section shall be available and enforced in any proceeding in and in any court of the commonwealth.

M.G.L. c. 175A, § 15 Rating organizations; regulations; commissioner's power to promulgate rules

c. 175A, § 15. Rating organizations; regulations; commissioner's power to promulgate rules Section 15. (a) The commissioner shall promulgate reasonable rules and statistical plans, reasonably adapted to each of the rating systems on file with him, which may be modified from time to time and which shall be used thereafter by each insurer in the recording and reporting of its loss and countrywide expense experience, in order that the experience of all insurers may be made available at least annually in such form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set forth in section five. Such rules and plans may also provide for the recording and reporting of expense experience items which are specially applicable to this commonwealth and are not susceptible of determination by a prorating of countrywide expense experience. In promulgating such rules and plans, the commissioner shall give due consideration to the rating systems on file with him and, in order that such rules and plans may be as uniform as is practicable among the several states, to the rules and to the form of the plans used for such rating systems in other states. No insurer shall be required to record or report its loss experience on a classification basis that is inconsistent with the rating system filed by it. The commissioner may designate one or more rating organizations or other agencies to assist him in gathering such experience and making compilations thereof, and such compilations shall be made available, subject to reasonable rules promulgated by the commissioner, to insurers and rating organizations. (b) Reasonable rules and plans may be promulgated by the commissioner for the interchange of data necessary for the application of rating plans. (c) In order to further uniform administration of rate regulatory laws, the commissioner and every insurer and rating organization may exchange information and experience data with insurance supervisory officials, insurers and rating organizations in other states and may consult and co-operate with them with respect to rate making and the application of rating systems. (d) The commissioner may make reasonable rules and regulations necessary to effect the purpose of this chapter.

M.G.L. c. 175A, § 16 False or misleading information

c. 175A, § 16. False or misleading information Section 16. No person or organization shall wilfully withhold information from, or knowingly give false or misleading information to, the commissioner, any statistical agency designated by the commissioner, any rating organization, or any insurer, which will affect the rates or premiums chargeable under this chapter.

M.G.L. c. 175A, § 17 Agreements and rate modifications; commissioner's approval

c. 175A, § 17. Agreements and rate modifications; commissioner's approval Section 17. Agreements may be made among insurers with respect to the equitable apportionment among them of insurance which may be afforded applicants who are in good faith entitled to, but who are unable to, procure such insurance through ordinary methods and such insurers may agree among themselves on the use of reasonable rate modifications for such insurance, such agreements and rate modifications to be subject to the approval of the commissioner.

M.G.L. c. 175A, § 18 Violation of this chapter; penalty

c. 175A, § 18. Violation of this chapter; penalty Section 18. Any person or organization wilfully violating any provision of this chapter shall be punished by a fine of not more than five hundred dollars for each such violation. Such penalty may be in addition to any other penalty provided by law. The commissioner may suspend the license of any rating organization or insurer which fails to comply with an order of the commissioner within the time limited by such order, or any extension thereof which the commissioner may grant. The commissioner shall not suspend the license of any rating organization or insurer for failure to comply with an order until the time prescribed for an appeal therefrom has expired or, if an appeal has been taken, until such order has been affirmed. The commissioner may determine when a suspension of license shall become effective and it shall remain in effect for the period fixed by him, unless he modifies or rescinds such suspension, or until the order upon which such suspension is based is modified, rescinded or reversed. No license shall be suspended or revoked except upon a written order of the commissioner, stating his findings, made after a hearing held upon not less than ten days' written notice to such organization specifying the alleged violation.

M.G.L. c. 175A, § 19 Aggrieved insurer or rating organization; hearing before commissioner; appeal

c. 175A, § 19. Aggrieved insurer or rating organization; hearing before commissioner; appeal Section 19. (a) Any insurer or rating organization aggrieved by any order or decision of the commissioner made without a hearing, may, within thirty days after notice of the order to the insurer or organization, make written request to the commissioner for a hearing thereon. The commissioner shall hear such party or parties within thirty days after receipt of such request and shall give not less than fifteen days' written notice of the time and place of the hearing. Within thirty days after such hearing the commissioner shall affirm, reverse or modify his previous action, specifying his reasons therefor. Pending such hearing and decision thereon the commissioner may suspend or postpone the effective date of his previous action. (b) Nothing contained in this chapter shall require the observance at any hearing held under authority thereof of formal rules of pleading or evidence. (c) Any order or decision of the commissioner under authority of this chapter shall be subject to review, which shall be on the basis of the record of the proceedings before the commissioner, by appeal to the supreme judicial court at the instance of any party in interest. The order or decision shall be reviewed in accordance with the standards for review provided in paragraph (8) of section fourteen of chapter thirty A. The court shall determine whether the filing of the appeal shall operate as a stay of any such order or decision of the commissioner. The court may, in disposing of the issue before it, modify, affirm or reverse the order or decision of the commissioner in whole or in part.

M.G.L. c. 175A, § 20 Severability

c. 175A, § 20. Severability Section 20. If any section, subsection, subdivision, paragraph, sentence or clause of this chapter is held invalid or unconstitutional, such decision shall not affect the remaining portions of this chapter.

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter175AFetched: 10/20/2026