Massachusetts § 116 Title guarantee funds

Massachusetts Statutes

§ 116 — Title guarantee funds

Massachusetts § 116

Part IADMINISTRATION OF THE GOVERNMENT

Title XXIICORPORATIONS

Ch. 175INSURANCE

This text of Massachusetts § 116 (Title guarantee funds) is published on Counsel Stack Legal Research, covering Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mass. Gen. Laws ch. 175, § 116 (2026).

Text

Section 116. Every such company shall set apart an amount not less than two fifths of its capital, and not less than one hundred thousand dollars in any case, as a title guaranty fund, and shall invest it subject to the limitations imposed by this chapter upon the investment of the capital of other domestic insurance companies, and shall issue no title policy and make no contract of title guaranty or title insurance until such amount is so set apart and invested.The principal of such title guaranty fund shall be a trust for the protection of title policyholders, and shall be applied only to the payment of losses and expenses incurred by reason of the title guaranty or title insurance contracts of the company. Whenever the company shall increase its capital, two fifths or a sufficient part 

Free access — add to your briefcase to read the full text and ask questions with AI

Section 116. Every such company shall set apart an amount not less than two fifths of its capital, and not less than one hundred thousand dollars in any case, as a title guaranty fund, and shall invest it subject to the limitations imposed by this chapter upon the investment of the capital of other domestic insurance companies, and shall issue no title policy and make no contract of title guaranty or title insurance until such amount is so set apart and invested.The principal of such title guaranty fund shall be a trust for the protection of title policyholders, and shall be applied only to the payment of losses and expenses incurred by reason of the title guaranty or title insurance contracts of the company. Whenever the company shall increase its capital, two fifths or a sufficient part of the increase shall be set apart and duly invested and added to the title guaranty fund so that such fund shall always be not less in amount than two fifths of the entire capital.If by reason of losses or other cause the title guaranty fund becomes less than the minimum amount required by this section, the company shall forthwith give written notice thereof to the commissioner, and shall make no further contract of title guaranty or title insurance until the said fund has been restored nor until it has received a certificate from the commissioner to that effect and authorizing it to make such contracts.