§ 160 — Persons aiding foreign company not lawfully admitted to issue policies or contracts; penalty; reinsurance or transfer of primary obligation to meet actual risk assumed under policy to unlicensed company or company with insufficient net cash assets prohibited

Massachusetts § 160

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XXII: CORPORATIONS
• Ch. 175: INSURANCE

Text

Section 160. Whoever, for a person other than himself, acts or aids in any manner in the negotiation, continuation, or renewal of a policy of insurance or an annuity or pure endowment contract with a foreign company not lawfully admitted to issue such policies or contracts in this commonwealth shall, except as provided in section one hundred and sixty-eight, be punished by a fine of not less than one hundred nor more than five hundred dollars; but this section shall not apply to a duly licensed special insurance broker acting under said section one hundred and sixty-eight, nor to any act of a duly licensed insurance broker in negotiating, continuing or renewing policies of insurance on transportation, inland navigation and ocean and coastwise marine risks, nor to any insurance appertaining thereto which cannot, to the advantage of the insured, be placed in authorized companies; provided, however, no duly licensed insurance broker or special insurance broker shall act in negotiating, continuing or renewing policies of insurance on transportation, inland navigation and ocean and coastwise marine risks with a foreign company not authorized to transact business in the commonwealth unless such company is possessed of net cash assets of at least one million dollars computed on the basis fixed by sections ten to twelve, inclusive, and meets all the requirements of section one hundred and sixty-eight relating to foreign companies not authorized to transact business in the commonwealth.No insurance broker or special insurance broker shall negotiate, continue or renew any such policies in any company, whether licensed, authorized to transact business in the commonwealth by section one hundred and sixty-eight, or authorized by this section, if the primary obligation to meet the actual risk assumed under any such policy is reinsured or otherwise transferred by such a company to a company that is not licensed or possessed of net cash assets as prescribed by this section or authorized to transact business by this section or section one hundred and sixty-eight.The commissioner may, after an appropriate hearing authorize a company that does not have net assets as prescribed or a deposit in the amount required by section one hundred and sixty-eight to be used by insurance brokers and special insurance brokers to issue coverage on transportation, inland navigation and ocean and coastwise marine risks if he finds on the basis of the evidence presented at such a hearing that necessary coverage is not available to such risks from companies meeting the aforesaid requirements so long as he is satisfied that its officers and directors are of good repute and that the management of the company is carrying out its insurance contracts in good faith and that it shall file with the commissioner the reports required of companies authorized to transact business in the commonwealth pursuant to section one hundred and sixty-eight. Any such finding shall be reduced to writing and the authorization so given may at any time be revoked by the commissioner.A person, other than the commissioner or his deputy, upon whose complaint a conviction is had for violation of this section, shall be entitled to one half of the fine recovered upon sentence therefor.